Oil Sands and Heavy Oil Worldwide: Production and Infrastructure Markets

Published: April 20, 2012 - 124 Pages

Table of Contents

Chapter 1:   Executive Summary

Introduction

Conventional and Unconventional Crude Oil Defined

Table 1-1 Conventional and Unconventional Crude Oil Resources in Density, Viscosity and Composition

Global Heavy Oil, Extra-Heavy Oil and Bitumen Reserves

Figure 1-1: Global Heavy Oil, Extra-Heavy Oil and Bitumen
Reserves by Country and Region (Canada, United States,
Venezuela, Rest of Latin America, Russia, Central Asia,
Europe, Middle East, Asia-Pacific, Africa) (%)

Global and Regional Oil Production

Figure 1-2: Global Unconventional Crude Oil Production
(Bitumen, Heavy and Extra-Heavy Crude Oil)
by Region (thousand barrels/day) (2007-2021)

Unconventional Crude Oil Development and Production
Spending and Infrastructure

Unconventional Crude Oil Production Infrastructure – 
Field, Production Facilities and Upgraders

Figure 1-3: General Upgrading Schematic

Development and Production CAPEX and Infrastructure Market

Figure 1-4: Global Oil Sands and Bitumen Development
and Production CAPEX by Region (including Bitumen
Upgraders) (2011/2021)  ($U.S. billions)

Figure 1-5: Global Unconventional Oil Production Project
Infrastructure Market by Segment – Onshore Field/Onshore Facility/Offshore Subsea/Offshore Topsides (2011/2021) 
($U.S. billions)

Conclusion

 

Chapter 2:   Introduction to Bitumen,  Heavy Oil
and Extra-Heavy  Oil Production and Upgrading

Introduction

Heavy Oil and Oil Sands as Unconventional Crude Oil Resources

Table 2-1 Conventional and Unconventional Crude Oil Resources in Density, Viscosity and Composition

Heavy Oil

Oil Sands (Bitumen)

Extra-Heavy O

Industry History of Heavy Oil and Bitumen Production

Figure 2-1: International Light Crude - Heavy Crude Price
Differentials – Western Canada, Maya, Arabian Heavy,
Brent, WTI (1983-2011) (%)

Figure 2-2: International Light Crude - Heavy Crude Price
Differentials – Western Canada, Maya, Arabian Heavy,
Brent, WTI (1983-2011) (%)

Global Reserves of Oil Sands (Bitumen) and Heavy Oil

Figure 2-3: Global Heavy Oil, Extra-Heavy Oil and Bitumen
Reserves by Country and Region (Canada, United States,
Venezuela, Rest of Latin America, Russia, Central Asia,
Europe, Middle East, Asia-Pacific, Africa) (%)

Table 2-2: Countries with Significant Deposits of Heavy Oil
or Bitumen Grouped by World Region

Unconventional Oil Recovery

Cold Production

Figure 2-4: Cold Production Schematic

Steam Injection

Figure 2-5: Steam Injection Schematic

Combustion

Vapor Extraction Process

Other Technologies

Unconventional Oil Field Infrastructure

Unconventional Oil Production Facility Infrastructure

Oil Treating and Handling

Water Treatment

Steam Generation / Cogeneration

Bitumen and Extra-Heavy Oil Upgrading

Figure 2-6: General Upgrading Schematic

Conclusion

 

Chapter 3: Global Oil Sands and  Heavy Oil Production

Introduction

Canadian Bitumen Production

Table 3-1: Canada – Heavy Oil and Bitumen Reserves and In Place

Figure 3-1: Canadian Crude Bitumen Production (barrels/day)
(2007-2011)

Figure 3-2: Canadian Synthetic Crude Oil Production (barrels/day)
(2007-2011)

Figure 3-3: Canadian Crude Bitumen and Synthetic Crude
Oil Production Forecast (million barrels/day) (2012-2021)

Figure 3-4: Canadian Heavy Crude Oil Production –
Historical and Forecast (thousand barrels/day) (2007-2021)

Figure 3-5: Canadian Unconventional Oil Production Portfolio –
Share by Type (Crude Bitumen [non-upgraded], Synthetic Crude
Oil, Heavy Crude Oil) (% and thousand barrels/day) (2011/2021)

Venezuelan Extra-Heavy Oil Production

Table 3-2: Venezuela – Heavy Oil and Extra-Heavy Oil Reserves
and In Place

Figure 3-6: Venezuelan Extra-Heavy Crude Oil Production
(barrels/day) (2007-2011)

Figure 3-7: Venezuelan Synthetic Crude Oil Production
(barrels/day) (2007-2011)

Figure 3-8: Venezuelan Extra-Heavy and Synthetic Crude Oil
Production Forecast  (millions of barrels/day) (2012-2021)

U.S. Heavy Oil Production

Table 3-3: United States – Heavy Oil and Bitumen Reserves
and In Place

Figure 3-9: U.S. Heavy Crude Oil Production (barrels/day)
(2007-2021)

Unconventional Oil Production in the Rest of Latin America

Table 3-4: Latin America (excluding Venezuela) –
Heavy Oil and Bitumen Reserves and In Place

Figure 3-10: Latin American Heavy Crude Oil Production –
Historical and Forecast (excluding Venezuela)
(thousand barrels/day) (2007-2021)

Figure 3-11: Latin American Heavy Crude Oil Production –
By Country (Mexico, Brazil, Colombia, Ecuador, Rest of
Latin America) (% and thousand barrels/day) (2011/2021)

Unconventional Oil Production in the Middle East

Table 3-5: Middle East – Heavy Oil and Bitumen Reserves
and In Place

Figure 3-12: Middle Eastern Heavy Crude Oil Production –
Historical and Forecast (thousand barrels/day) (2007-2021)

Unconventional Oil Production in Russia and Central Asia

Table 3-6: Russia – Heavy Oil and Bitumen Reserves and In Place

Unconventional Oil Production in Asia-Pacific

Table 3-7: Asia-Pacific – Heavy Oil and Bitumen Reserves
and In Place

Figure 3-13: Asia-Pacific Heavy Crude Oil Production –
Historical and Forecast  (thousand barrels/day) (2007-2021)

 

Unconventional Oil Production in Europe

Table 3-8: Europe – Heavy Oil and Bitumen Reserves and In Place

Figure 3-14: European Heavy Crude Oil Production –
Historical and Forecast (thousand barrels/day) (2007-2021)

Unconventional Oil Production in Africa

Table 3-9: Africa – Heavy Oil and Bitumen Reserves and In Place

Figure 3-15: African Heavy Crude Oil Production –
Historical and Forecast (thousand barrels/day) (2007-2021)

Trends and Implications in Worldwide Unconventional Oil
Production Development

Figure 3-16: Unconventional Crude Oil Production (Bitumen,
Heavy and Extra-Heavy Crude Oil)  by Global Region
(% and thousand barrels/day) (2011/2021)

Figure 3-17: Global Unconventional Crude Oil Production
(Bitumen, Heavy and Extra-Heavy  Crude Oil) by Region
(thousand barrels/day) (2007-2021)

Conclusion

Table 3-10: Global Unconventional Crude Oil Production
(Bitumen, Heavy and Extra-Heavy Crude Oil) by Region
(thousand barrels/day) (2007-2021)

 

Chapter 4: Market Size & Growth – Oil Development
and Production  CAPEX and Infrastructure

Introduction

Methodology and Organization

Canadian Oil Sands Production Capital Spending

Figure 4-1: Canadian In-Situ Bitumen Development
and Sustaining CAPEX (2007-2021) ($U.S. billions)

In-Situ Field Infrastructure Market

Figure 4-2: Canadian Market for Field Infrastructure at In-Situ
Bitumen Production Projects (2007-2021) ($U.S. millions)

In-Situ Facility Infrastructure Market - Oil Treating and
Handling Systems

Figure 4-3: Canadian In-Situ Bitumen Market for Oil Treating
 and Handling Systems at In-Situ Bitumen Facilities
(2007-2021) ($U.S. millions)

In-Situ Facility Infrastructure Market - Water Treatment Systems

Figure 4-4: Canadian Market for Water Treatment Systems at
In-Situ Bitumen Facilities (2007-2021) ($U.S. millions)


Figure 4-5: Canadian In-Situ Bitumen Facility Water
Treatment Systems – Market Share by Technology
(Evaporator, Evaporator and Crystallizer, Lime
Softening-Acid Cation Exchange and Other)
(2002-2011/2012-2021) (% of New Construction Installations)

In-Situ Facility Infrastructure Market - Steam Generation and Cogeneration Systems

Figure 4-6: Canadian Market for Steam Generation Systems
at In-Situ Bitumen Facilities  (2007-2021) ($U.S. millions)

Figure 4-7: Canadian In-Situ Bitumen Facility Steam
Generation Systems – Market Share by Technology
(Once Through Steam Generators and Drum Boilers) 
(2002-2011/2012-2021) (% of New Construction Installations*)

Figure 4-8: Canadian Market for Cogeneration Equipment at In-Situ Bitumen and Upgrader Facilities (2007-2021) ($U.S. millions)

Canadian Upgrader Capital Spending

Figure 4-9: Canadian Upgrader Facility Capital Expenditures –

New Construction and Sustaining (2007-2021) ($U.S. billions)

Figure 4-10: Venezuelan Extra-Heavy Oil Development and
Sustaining CAPEX (2007-2021) ($U.S. billions)

Venezuelan Extra-Heavy Oil Capital Spending

Figure 4-11: Venezuelan Extra-Heavy Oil Infrastructure Market
by Segment – Field and Facility (2007-2021) ($U.S. millions)

Figure 4-12: Venezuelan Upgrader Facility Capital Expenditures –
New Construction and Sustaining (2007-2021) ($U.S. billions)

Venezuelan Upgrader Capital Spending

U.S. Heavy Oil Capital Spending

Figure 4-13: U.S. Heavy Oil Development and Production CAPEX
(2007-2021) ($U.S. billions

Figure 4-14: U.S. Heavy Oil Infrastructure Market by Segment –
Field and Facility (2007-2021) ($U.S. millions)

Latin American Heavy Oil Capital Spending

Figure 4-15: Latin American Heavy Oil Development and Production CAPEX (2007-2021) ($U.S. billions)

Figure 4-16: Latin American Heavy Oil Infrastructure Market by
Segment –  Offshore Subsea, Offshore Topsides, Onshore
Oil Field, Onshore Facility (2007-2021) ($U.S. millions)

Heavy Oil Capital Spending in the Middle East

Figure 4-17: Middle East Heavy Oil Development and Production
CAPEX (2007-2021) ($U.S. billions)

Figure 4-18: Middle East Heavy Oil Infrastructure Market
by Segment –  Offshore Subsea, Offshore Topsides,
Onshore Oil Field, Onshore Facility (2007-2021) ($U.S. millions)


Heavy Oil Capital Spending in Russia and Central Asia

Heavy Oil Capital Spending in Asia-Pacific

Figure 4-19: Asia-Pacific Heavy Oil Development and Production
CAPEX (2007-2021) ($U.S. billions)

Figure 4-20: Asia-Pacific Heavy Oil Infrastructure Market
by Segment –  Offshore Subsea, Offshore Topsides,
Onshore Oil Field, Onshore Facility (2007-2021) ($U.S. millions)

Heavy Oil Capital Spending in Europe

Figure 4-21: European Heavy Oil Development and Production
CAPEX (2007-2021) ($U.S. billions)

Figure 4-22: European Heavy Oil Infrastructure Market by Segment –  Offshore Subsea, Offshore Topsides, Onshore Oil Field, Onshore Facility (2007-2021) ($U.S. millions)

Heavy Oil Capital Spending in Africa

Figure 4-23: African Heavy Oil Development and Production
CAPEX (2007-2021) ($U.S. billions)

Figure 4-24: African Heavy Oil Infrastructure Market by Segment –  Offshore Subsea, Offshore Topsides, Onshore Oil Field, Onshore Facility (2007-2021) ($U.S. millions)

Global Outlook on Capital Spending and Equipment &  Product Markets at Oil Sands and Heavy Oil Projects

Figure 4-25: Global Oil Sands and Bitumen Development and
Production CAPEX by Region (including Bitumen Upgraders) (2011/2021) ($U.S. billions)

Figure 4-26: Global Unconventional Oil Production Project
Equipment and Bulk Products Market  by Segment –
Onshore Field/Onshore Facility/Offshore Subsea/Offshore
Topsides (2011/2021) ($U.S. billions)

Conclusion

Table 4-1: Global Unconventional Oil (Heavy Oil, Extra-Heavy
Oil and Bitumen) Development  and Production CAPEX
and Field, Facility, Subsea and Topsides Infrastructure
Markets (2007-2021) ($U.S. billions)

 

Chapter 5: Suppliers and Industry

Introduction

Canadian Oil Sands Equipment and Bulk Supplier Industry Composition   

Figure 5-1: Alberta Fabricated Metal Products Market Share by Country/Region – Alberta, Rest of Canada, United States, and International (2002-2011e) (%)

Figure 5-2: Alberta Oil & Gas Field Machinery Products Market
Share by Country/Region –  Alberta, Rest of Canada,
United States, and International (2002-2011e) (%)

Major Suppliers

Babcock & Wilcox

Baker Hughes

Flint Energy Services

GE Water & Process Technologies

IST/Aecon

PCL Industrial Management

Veolia WST

Weatherford

Major International Supplier Opportunities

Steam Generator Imports

Figure 5-3: Steam Generator Import Share by World Region
in Oman, Venezuela, Colombia  and Alberta (2002-2010) (%)

U.S. Exports of Field Production Equipment (Lift Pumps and
Oil Well Downhole Equipment)

Figure 5-4: U.S. Exports of Lift Pumps and Oil Well Downhole
Equipment  by Heavy Oil Region – Canada, Latin America
(including Venezuela), the Middle East, Russia/Central Asia,
Europe, Asia-Pacific and Africa (2002-2011) ($U.S. millions)

U.S. Exports of Offshore Oil Production Platforms and their
Components

Figure 5-5: U.S. Exports of Offshore Oil Production Platforms
and their Components  by Heavy Oil Region – Canada,
Latin America (including Venezuela), the Middle East,
Russia/Central Asia, Europe, Asia-Pacific and Africa
(2002-2011) ($U.S. millions)

Conclusion

 


Abstract

Dense and viscous, bitumen is counted along with extra-heavy crude oil and heavy crude oil as unconventional crude oil resources that are finding a growing role in upstream operations and producer portfolios worldwide. Between 2007 and 2011, global unconventional crude oil production rose at a rate nearly four times higher than total crude oil production (compound annual growth rate [CAGR] of 1.5% to 0.4%) and represented nearly half of the total production gains (518,000 barrels a day of  1.06 million barrels a day). In this report, SBI Energy details historical and forecast trends in heavy oil, extra-heavy oil and bitumen production (in barrels a day), associated annual capital spending (CAPEX) volumes, and annual market volumes for project infrastructure on a global, regional and country basis between 2007 and 2021.

Oil Sands and Heavy Oil Worldwide – Production and Infrastructure Markets is an informative and comprehensive resource featuring data-driven analysis of global crude oil resources with an American Petroleum Institute (API) gravity equal to or less than 22.2° (degrees) and viscosity above 100 centipoise (cP) or, the viscosity of maple syrup. With such features, unconventional crude oil resources like heavy oil, extra-heavy oil and crude bitumen can present unique challenges to traditional well production. In the Canadian oil sands, rounds of steam assisted gravity drainage (SAGD) projects are anticipated for completion each year through 2016, with each project using continuous injection of steam into horizontal wells to mobilize bitumen. Other industry projects are profiled worldwide, where steam well injection, water injection (secondary recovery), advanced drilling and other development strategies are employed to unlock heavy oil, extra-heavy oil, and bitumen.   

SBI Energy’s review of unconventional crude oil development and production provides historical and forecast (2007-2021) production rates by resource type and country (Canada, the United States, Venezuela) or region (Latin America [excluding Venezuela], the Middle East, Russia and Central Asia, Asia-Pacific, Africa, and Europe); historical and forecast development and production CAPEX volumes for unconventional crude oil by country or region; historical and forecast infrastructure markets for well fields, production facilities, subsea fields, and offshore topsides by country or region; historical and forecast upgrader facility expenditures for synthetic crude oil production in Canada and Venezuela; and market breakouts for the leading Canadian oil sands infrastructure market by well pad infrastructure, oil treating systems, water treating systems, steam generation systems, and cogeneration equipment. Remaining report content includes technical and operational overviews of unconventional crude oil production and conversion to synthetic crude oil, leading regional drivers for unconventional crude oil development and production, and roles for North American (U.S. and Canadian) manufacturers and fabricators in regional and overseas supply chains.

Report Methodology

The data, assessments and analysis provided in Oil Sands and Heavy Oil Worldwide – Production and Infrastructure Markets is based on primary and secondary research. Primary research included interviews with firms involved in the construction of unconventional crude oil production facilities, unconventional crude oil producers, and providers of oil field technology and services. Secondary research included the comprehensive review and consolidation of governmental data resources, SEC filings and operational data from heavy oil, extra-heavy oil and bitumen producers worldwide, industry association data, technical studies, and U.S. and foreign trade data.

The report made use of available unconventional crude oil project development information, including project scheduling, cost breakdowns, ongoing capital costs and individual equipment and technology costs that were used to determine the distribution of project CAPEX, procurement and major infrastructure orders.

What You’ll Get in This Report

Oil Sands and Heavy Oil Worldwide – Production and Infrastructure Markets contains exclusive insights and projections regarding the future of heavy crude oil, extra-heavy crude oil and bitumen production around the world, and its role in determining producer CAPEX and infrastructure spending both globally and regional. Readers will benefit from extensive data and unique analysis, presented in easy-to-read and illustrative charts, tables and graphs accompanied by fluid and concise commentary and conclusions.

How You’ll Benefit from This Report

If your company is already active in the production of unconventional crude oil resources, or is considering a stake in unconventional crude oil development, you will find this report invaluable. You will gain a thorough understanding of the current global production trends for heavy oil, extra-heavy oil and bitumen, as well as projected trends in capital spending requirements and project infrastructure demand through 2021.

This report will help:

  • Upstream service and technology providers understand the market forces shaping demand for ongoing unconventional crude oil development and production.
  • Research and development professionals assess addressable markets for solutions in unconventional crude oil recovery and production facility processing.
  • Business development executives understand the dynamics of the market, evaluate existing product and service portfolios with projected upstream activity,and identify possible partnerships and investment opportunities.
  • Information and research center librarians provide market researchers, product managers, and other colleagues with the vital information they need to do their jobs more effectively.

 


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