With all the doom and gloom in the economy and the increasing angst around oil sands development there is still some good news coming out that is worth celebrating.
Nexen Inc. is an integrated, innovative and award winning Canadian energy company. It is involved in the Alberta oil sands, amongst other endeavours all over the globe. So here is the good news. They have just produced the first barrel of Premium Sweet Crude from their Upgrader at their Long Lake oil sands project.
On the face of this news, one could say “big deal” but it is. They have now proven that a new oil sands technology can work to scale that is both good for the environment and the corporate bottom line - at the same time. They have the Long Lake project now in production with a target of 60,000 barrels per day. They also upgrade the bitumen on site with a facility that uses this new environmentally responsible technology.
What the Nexen Long Lake project does is use some oil sands waste from their SAGD operations and they convert it into a synthetic natural gas that they use as a heat source in further oil sands production. This means less waste but also means they don’t need as much conventional natural gas to operate their plant. Using conventional natural gas for bitumen extraction has been described in the past as using "gold to mine lead." This new technology creates a "synthetic gold" if you will allow me to mangle the metaphor.
We need to see more energy companies show this kind of leadership and responsibility as we move forward to provide safe, secure reliable energy as well as RESPONSIBLE and SUSTAINABLE oil sands development.
Well done Nexen. Keep up the good work.
Holy BJ, Batman! If I didn't know better, I would have to ask whether Nexen is a client.
ReplyDeleteDude, they are cracking hydrocarbons in the bitumen to make something to burn to process the bitumen. Asphaltenes (the things being cracked) are not "waste" (they can be used for other things) and they are not producing natural gas (which has a high-energy content), they are producing a low-energy fuel gas. Granted, they are not burning natural gas in the upgrader and good for them., but let's not pretend they deserve the Nobel prize in chemistry.
IF AMERICANS COULD, WE ALSO !! Harper, go texas !!!
ReplyDeleteI'm waiting for baited breath for a similar commendation from the Pembina Institute or EcoJustice (a self-righteous moniker if there ever was).
ReplyDeleteBut then again, it wouldn't make it as easy for them to fundraise.
Glad you raised this, Ken. It is economical (nat gas is an expensive fuel, and will only get more so), it is obviously an example of both energy conservation and better environmental practice (my understanding is that the water usage is also improved).
If Nexen was a client or if I was a shareholder it would have been disclosed in the post. Thx for asking!
ReplyDeleteI'm interested to hear your take on what the immediate environmental benefits of Nexen's technology are?
ReplyDeleteThe current reality as I understand it is that this gasification process actually leads to more than double the GHG intensity of Nexen's SAGD competitors.
Yes - it's true that gasification leads to a pure enough stream of CO2 that one could, in theory, capture and store it.
But neither the Gov't of Alberta nor the Feds require CCS technology, nor do they have regulations in place that establish a sufficiently high price on carbon to compel companies like Nexen to invest the millions of dollars needed to deploy CCS.
As for waste management -- if the asphaltenes weren't burned by Nexen they'd be "coked" out during upgrading and/or refining...and simply be burned elsewhere.
So -- while Nexen deserves credit for pioneering a technology that COULD lead to reduced GHG pollution (IF they used CCS), the current reality is that this project is pumping out more carbon pollution per barrel than natural-gas fuelled SAGD development.
Nexen deserves part marks, and the GOA and the Feds get a failing grade as technology/solution "enablers."
Not sure what the celebrating is about here. Sure, Nexen have found a way to save on gas costs, but the greenhouse gas pollution associated with burning the leftovers is actually MORE polluting than the "dirty oil" produced by Syncrude and Suncor.
ReplyDeleteTill Nexen actually start capturing the pollution, its all greenwash.