SPE/CHOA Slugging it Out Conference 16 Apr 2019 | Hudson | Calgary, Alberta, Canada SPE/CHOA Slugging it Out Conference Thank You to Our Sponsors Gold: Audio/Visual: Silver: Lanyards: Lunch: Delegate Bags: Coffee Breaks: Bronze: R Technology Showcase Displays: Transforming Heavy Oil Schedule Overview 0700–0800 Registration and Breakfast 0800–0810 Opening Remarks by Committee Chair, Jarrett Dragani, Cenovus Energy Keynote Presentation: Rail’s Role in Accessing the Market 0810–0845 Keith Chiasson, Executive Vice President Downstream, Cenovus Energy Session 1: Smart Optimization 1 Optimization of Steam Allocation Decisions through Integrated Workflow Planning 0845–0945 Amir Hossini and Javier Sanchez, ConocoPhillips 2 SAGD Field Development Planning Through the Use of Optimization Software Kyle Craig, Aucerna 0945–1015 Morning Coffee Break Session 2: New Tech – Upstream Production Enhancement 1 Move Fast and Break Things, in the Lab Not in the Field Tom de Haas, Interface Fluidics 1015–1145 2 RF XL Commercialization Update – RF Heating for Oil Sands and Heavy Oil Reservoirs Mike Tourigny, Acceleware 3 The Justification for SAGD-Specific Flow Control Devices Julian Ortiz, ConocoPhillips Canada 1145–1300 Networking Lunch Session 3: New Tech – Downstream Market Solutions 1 Heavy Oil and Bitumen Pellets: Solid Phase Transport of Oil Ian Gates and Jacky Wang, University of Calgary 1300–1430 2 Ready for Prime Time – The EJS Regional Hub Project Edwin J. Veith and Richard Masson, Fractal Systems 3 Impacts of the IMO Sulphur Regulation on the Canadian Crude Oil Market Dinara Millington, Canadian Energy Research Institute 1430–1500 Afternoon Coffee Break. Session 4: Project Updates and Field Demonstration Pilots 1 Operational Updates and Development Trends Jared Wynveen, McDaniel & Associates Consultants 2 Devon Manatokan East Post-CHOPS Methane & Propane CSI Pilot Results , Devon Canada 1500–1700 Mark Anderson 3 Turning Lemons into Lemonade – Challenges and Strategies to Maximize Value from Long Lake Craig Flowers, CNOOC International 4 Production Challenges with Foamy Oil at Clearwater Marten Hills Justin Dell, Cenovus Energy 1700–1830 Sluggin’ It Back! Networking Reception SPE/CHOA Slugging it Out Conference PROGRAM COMMITTEE OPENING KEYNOTE PRESENTER Chairperson Jarrett Dragani Cenovus Energy Rail’s Role in Accessing the Market Farid Ahmadloo Richard Chan Stephan Foust Mary Hansen Canadian Natural Suncor Energy McDaniel & Associates Resources Limited Consultants Ltd. Amir Hosseini Sara Lagos Kris Stephansson Glenn Thoben ConocoPhillips Devon Energy Imperial Oil Spartan Controls. David Vu Jeremy Walter K.C. Yeung Jian-Yang Yuan CNOOC International. Computer Modelling Group Partners Energy MEG Energy Development Corp. In Lieu of Speaker and Committee Gifts … On behalf of the Slugging it Out Program Committee and Speakers, a donation of CAD 600 has been made to support AWSN. AWSN is an umbrella organization that supports a wide range of programs that encourage youth from underrepresented groups (girls, aboriginal youth, rural youth) to pursue their interest in STEM (science, technology, engineering and math). AWSN also supports programs for STEM graduates at any career stage by encouraging STEM trained professionals to find work in, and to stay and grow in their profession (new graduates, Alberta newcomers, women). For more information about this non-profit, visit: www.awsn.org. This donation has been made at the request of the committee, in lieu of speaker and committee gifts. Transforming Heavy Oil OPENING KEYNOTE PRESENTER 0810-0845 Rail’s Role in Accessing the Market Keynote Speaker: Keith Chiasson Executive Vice President Downstream, Cenovus Energy Inc. The number one issue facing Canadian heavy oil producers remains lack of adequate takeaway capacity for the sector’s growing oil production. This is impacting cash flow not just for producers but also for provincial and federal governments and is hurting the Canadian economy. While building new pipelines is the key solution to this problem, rail also has a role to play, even in times when pipeline capacity is at sufficient levels. Keith Chiasson, Cenovus Energy’s Executive Vice-President of Downstream, will talk about the benefits of moving oil by rail, as well as how we can overcome some of the challenges that created the market access problem. Sponsor of Slugging it Out 2019 imperialoil.ca Transforming Heavy Oil 0845-0945 SESSION 1: SMART OPTIMIZATION Session Chairpersons: Amir Hossini, ConocoPhillips Kris Stephansson, Imperial Oil Jeremy Walter, Computer Modelling Group PRESENTATION 1 PRESENTATION 2 Optimization of Steam Allocation SAGD Field Development Planning Decisions through Integrated Workflow Through the Use of Optimization Planning Software Amir Hossini and Javier Sanchez, Kyle Craig, Aucerna ConocoPhillips Field development planning for SAGD The segregation of SAGD well projects requires a proper sequence to performances across the inventory align field production with constraints necessitates a preferential steam through trunklines and at central allocation for production optimization. processing facilities for multiple Amir Hossini This is particularly important when production and injection streams. This is local complexities such as top-water particularly difficult to accomplish with production ratios thief zone interaction, bottom-water that change over time such that a facility designed to interaction and reservoir architecture meet initial rates is eventually either underbuilt, causing will have impacts not only on current production curtailment, or overbuilt, leading to higher performance of the wells but also capital spend. This presentation will investigate the use their anticipated performance in the of optimization software for the use of field development future. Therefore, establishment of an planning to guide the selection of pads and trunklines integrated workflow around steam to maximize value. Through the use of dependencies, Javier Sanchez allocation strategy which maximizes constraints and selection criteria, the optimization production while (1) considers current software will analyze numerous possible sequences and challenges, (2) addresses anticipated timings to find the combination which yields the greatest subsurface risks and (3) provides a feedback loop to net present value and aligns surface and subsurface influence future planning is of utmost importance. In this requirements. Field development plans using typical talk, we discuss a full cycle steam allocation strategy that pad sequencing techniques will be compared to the addresses all three areas. optimized case to highlight the impact of pad sequence on constrained production, trunkline sizing, field capital and overall economics. 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Transforming Heavy Oil 1015-1145 SESSION 2: NEW TECH – UPSTREAM PRODUCTION ENHANCEMENT Session Chairpersons: Mary Hansen, McDaniel & Associates Consultants Jian-Yang Yuan, MEG Energy PRESENTATION 1 PRESENTATION 2 Move Fast and Break Things, RF XL Commercialization Update – RF in the Lab Not in the Field Heating for Oil Sands and Heavy Oil Reservoirs Tom de Haas, Interface Fluidics Mike Tourigny, Acceleware Assessing the performance of new in-situ bitumen recovery methods Thermal recovery is one of the most with a field pilot requires extensive effective approaches in recovering risk assessments, takes months to heavy oil or bitumen. Radio frequency years, and often leads to inconclusive (RF) energy has been considered results. Exciting new chemistry and for downhole heating as early as recovery processes are entering the market all the the 1940’s. Recent developments in time; laboratory testing provides companies with an this technology have generated new interest due to its opportunity to screen different production technologies economic and environmental benefits and for its ability before going to the field. Screening gives field pilots to produce a wide range of reservoirs including many the best chance of successfully moving from a pilot that to date have not been considered commercially to commercial implementation. This presentation will viable. discuss the role of new micromodel technology in The technology operates by delivering controlled screening new production chemistry. electromagnetic energy (EM) directly into an oil-bearing Micromodels have been used in the oil and gas formation. The electromagnetic energy raises the industry since the 1960s. In the 1990s, Improvements temperature of existing water in the formation, enabling in microfabrication from the microelectronics production. Important properties for the success of this industry improved the accuracy of the