A T E C H N I C A L , E C O N O M I C , A N D L EGA L ASSESSMEN T O F North American Heavy Oil, Oil Sands, and Oil Shale Resources In Response to Energy Policy Act of 2005 Section 369(p) PREPARED FOR U.S. DEPARTMENT OF ENERGY PREPARED BY UTAH HEAVY OIL PROGRAM INSTITUTE FOR CLEAN AND SECURE ENERGY THE UNIVERSITY OF UTAH SEPTEMBER 2007 72751cover.indd 1 10/8/07 1:05:22 PM Disclaimer !is report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United Stated Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, complete- ness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the Unites States Government or any agency thereof. !e views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government. 72751ifcover.indd 1 10/8/07 10:57:42 AM A Technical, Economic, and Legal Assessment of North American Heavy Oil, Oil Sands, and Oil Shale Resources In Response To Energy Policy Act of 2005 Section 369(p) Work Performed Under DE-FC-06NT15569 Prepared for U.S. Department of Energy O!ce of Fossil Energy and National Energy Technology Laboratory Prepared by Utah Heavy Oil Program Institute for Clean and Secure Energy The University of Utah 155 South 1452 East, Room 380 Salt Lake City, Utah 84112 September 2007 72751aatitlePortion.indd 1 10/4/07 1:46:23 PM Acknowledgments A Technical, Economic, and Legal Assessment of North American Oil Shale, Oil Sands, and Heavy Oil Resources In Response To Energy Policy Act of 2005 Section 369(p) is a report sponsored by the U.S. Department of Energy, Office of Fossil Energy and National Energy Technology Laboratory, and prepared under Contract Number DE-FC-06NT15569 by the Utah Heavy Oil Program in the Institute for Clean and Secure Energy at the University of Utah. Dr. David Alleman of the National Energy Technology Laboratory served as the Project Director for this report. Special recognition is due those who directly performed the work on this report. "e principal authors were Dr. Richardson Allen, Dr. Milind D. Deo, Mr. Alan E. Isaacson, Robert B. Keiter, Esq., Mr. Christopher Kessler, Dr. Raymond Levey, Dr. Kyeong Seok Oh, Dr. Philip J. Smith, Dr. Jennifer P. Spinti, and Kirsten Uchitel, Esq. on behalf of the Utah Heavy Oil Program. "is report benefited greatly from the input of Dr. Murray R. Gray, Constance K. Lundberg, Esq., Dr. Olayinka Ogunsola, Dr. David K. Olsen, and Mr. Bruce Ramzel. Utah Heavy Oil Program Unconventional Oils Research Report September 2007 ii 72751aatitlePortion.indd 2 10/4/07 1:46:24 PM Forward !e Energy Policy Act of 2005 (EPAct) section 369 paragraph (p) calls for a heavy oil technical and economic assessment as follows: “(p) Heavy Oil Technical and Economic Assessment.--!e Secretary of Energy shall update the 1987 technical and economic assessment of domestic heavy oil resources that was prepared by the Interstate Oil and Gas Compact Commission. Such an update should include all of North America and cover all unconventional oil, including heavy oil, tar sands (oil sands), and oil shale.” !e U.S. Department of Energy has tasked the Utah Heavy Oil Program (UHOP) of the Institute for Clean and Secure Energy at the University of Utah with preparation of this assessment in its Statement Of Program Objectives (SOPO) as follows: “To develop an update of the 1987 technical and economic assessment of domestic heavy oil resources that was prepared by the Interstate Oil and Gas Compact Commission, incorporating the 1995 DOE-funded update entitled ‘Feasibility Study of Heavy Oil Recovery in the United States’ prepared by BDM-Oklahoma Inc. and other recent studies and data by others in the subject area. Such an update will include all of North America and cover all unconventional oil, including heavy oil, tar sands (oil sands), and oil shale. In addition, a publicly accessible online repository for infor- mation, data, and software pertaining to heavy oil resources in North America will be developed.” !is report has been prepared in compliance with the requirements of the UHOP SOPO as derived from EPAct for this technical and economic assessment. Technical and economic issues are not independent of legal and environmental issues. As the legal and environmental issues impact technical and economic ones, they have been included in this report. In the spirit of providing both historical and ongoing information, data and software to individuals and organizations seeking information on heavy oil issues, the Institute for Clean and Secure Energy has created and maintains a publicly accessible online repository at http://www.heavyoil.utah.edu. Utah Heavy Oil Program Unconventional Oils Research Report September 2007 iii 72751aforwardPortion.indd 3 10/5/07 3:24:40 PM Utah Heavy Oil Program Unconventional Oils Research Report September 2007 iv 72751aforwardPortion.indd 4 10/5/07 3:24:40 PM Table of Contents List of Figures ..............................................................................................................................viii List of Tables ..................................................................................................................................x List of Acronyms ...........................................................................................................................xi List of Units ................................................................................................................................xiv Executive Summary ......................................................................................................................xv 1 Introduction ........................................................................................................................... 1.1 1.1 Energy and Global Economic Development ................................................................. 1.1 1.2 North American Unconventional Oil Resources ........................................................... 1.2 1.3 Unconventional Oil Resources and the Global Petroleum Market ................................. 1.4 1.4 Heavy Oil ..................................................................................................................... 1.4 1.5 Oil Sands ...................................................................................................................... 1.5 1.6 Oil Shale ....................................................................................................................... 1.5 1.7 Upstream Processing ..................................................................................................... 1.5 1.8 Downstream Processing and Markets ............................................................................ 1.7 1.9 Economic Issues ............................................................................................................ 1.7 1.10 Legal and Environmental Issues .................................................................................. 1.8 1.11 Summary .................................................................................................................... 1.8 1.12 References ................................................................................................................... 1.9 2 Utah Heavy Oil Program ArcIMS® Map Server Interface ....................................................... 2.1 2.1 UHOP ArcIMS® Map Server Interface ......................................................................... 2.1 2.2 Toolbar Description ...................................................................................................... 2.2 2.3 ArcIMS® Table of Contents ........................................................................................... 2.3 2.4 Usage Tips .................................................................................................................... 2.4 2.5 Accessing the UHOP Repository through the Map Server Interface .............................. 2.4 2.5.1 Using the Identify Results Tool ............................................................................ 2.5 2.5.2 Using the Select by Rectangle Tool ...................................................................... 2.6 2.5.3 Using the Query UHOP Repository Tool ............................................................ 2.7 2.6 Future Work ................................................................................................................. 2.8 3 The North American Unconventional Oil Resource ............................................................... 3.1 3.1 Heavy Oil Resource ...................................................................................................... 3.3 3.1.1 Canadian Heavy Oil Resource ............................................................................. 3.5 3.1.2 U.S. Heavy Oil Resource ..................................................................................... 3.6 3.1.3 Mexican and Central American Heavy Oil Resource ........................................... 3.8 3.2 Oil Sands Resource ....................................................................................................