What is Heavy Oil?
Heavy oil is a type of crude oil that is very viscous, meaning that it is thick and does not flow easily. This is caused by both a low hydrogen to carbon ratio in the molecular make-up and the presence of other minerals such as asphaltenes, resins, sulfur and metals such as vanadium and nickel, which all increase its density.
Nearly all the deposits of heavy oil are degraded remnants of conventional oils. Degradation begins when oil migrates toward the earth’s surface and encounters water containing oxygen and bacteria. A tar-like material is formed at oil-water contact that eventually invades the entire oil accumulation. A process known as “water washing” removes the more water-soluble, light hydrocarbons, leaving a heavy oil accumulation. Heavy oil accumulations may represent as little as 10 percent of the original conventional oil1.
Due to their high density and viscosity, special extraction methods are needed to recover heavy oil efficiently. These methods include: surface mining, cold production and thermal recovery. Heavy oil may also require additional processing, usually referred to as upgrading, after being produced in order to be transported and refined. Large amounts of energy are put into the extraction and production of heavy oil – about 20% to 30% of the energy that is actually produced2.
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Context
Heavy oil makes up a significant portion of the world’s discovered petroleum resources, while only a very small fraction of these resources have been produced so far. High density and viscosity have traditionally made their recovery energy demanding in comparison to lighter oils.
Heavy crudes are expected to be a large contributor to the world’s energy needs in the future, as conventional supplies decrease. However, the technological costs to produce a barrel are currently much higher than with conventional resources. Additionally, the increased energy requirements and unconventional practices in production raise various environmental concerns such as land disturbance, tailing ponds, and higher greenhouse gas emissions.
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External resources
INTERNATIONAL OR PROMINENT INDUSTRY ASSOCIATION
Canadian Association of Petroleum Producers
National Petroleum Council (US)
Canadian Heavy Oil Association (CHOA)
International Council on Mining and Metals
Society of Petroleum Engineers
International Minerals & Mining Association
U.S. National Mining Association
RESEARCH INSTITUTION
Canadian Energy Research Institute
Alberta’s Petroleum Heritage Edukits
Canadian Centre for Energy Information
ACADEMIC JOURNAL
Journal of Geology and Mining Research
HISTORY
Canadian Association of Petroleum Producers (CAPP)
CRS Report for Congress – North American Oil Sands: History of Development, Prospects for the Future
POLITICS
Alberta Government – Rules, Reports and Regulations
The Economist – Oil sands
Parlee – Avoiding the Resource Curse: Indigenous Communities and Canada’s Oil Sands
ECONOMICS
Alberta Energy: Oil Sands Sustainable Development Secretariat
The Oil Sands Developers Group
Alberta Government – Alberta’s Oil Sands
Canadian Energy Research Institute – Refining Bitumen: Costs, Benefits and Analysis
Canadian Energy Research Institute – Economic Impacts of New Oil Sands Projects in Alberta (2010-2035)
TECHNOLOGY
How SAGD Works | Cenovus Energy
Talk About SAGD | Alberta Energy
ENVIRONMENTAL IMPACT
In Situ Report Card | Pembina Institute
Alberta Centre for Reclamation and Restoration Ecology
Canadian Energy Research Institute – Oil Sands Environmental Impacts
The Royal Society of Canada – Environmental and Health Impacts of Canada’s Oil Sands Industry
Alberta Government – Oil Sands Environmental Management
BUSINESS ANALYSIS
Alberta Energy: Oil Sands Sustainable Development Secretariat
Canada’s National Energy Board