Heavy Oil Upgrading and Refining When Less is More Ivanhoe Energy Heavy to Light (HTL) CI Energy Group Oil Sands Symposium December 2013 2013 Ivanhoe Energy All rights reserved
The Heavy Oil Opportunity: Using technology to shift our perspective. Heavy Oil Basins Ivanhoe Energy Presentation 3
Crude Oil Demand & Supply Historic and Projected Global Crude Oil Demand Forecasted Growth Crude Oil Demand 85 MMbbls/d Gap to be filled Heavy Oil by Heavy Oil 10-15 MMbbls/d Tight Oil 10 MMbbls/d Conventional Crude…
Economic Challenges Facing the Traditional Heavy Oil Supply Chain 19-21 API Blend (Heavy Oil + Diluent) External Supply Blend of Energy 8-16 API Heavy Oil Field Refinery Diluent Supply Heavy Oil Production Costs Blending and…
A Paradigm Shift for Upgrading Heavy Oil Upgrading Today Upgrading Tomorrow Ivanhoe Energy Presentation 6
HTL: a Partial Upgrading Process Low Capital Modular Selectively & Operating Constructability convert oil Cost residue to lighter product Reduce Thermal viscosity; High Yield no diluent conversion Low of High required for No…
HTL Process Flow Ivanhoe Energy Presentation 8
Why Partial Upgrading Less Complex than full upgrading Traditional Upgrader Sulfur Coke Storage Storage Distillation Unit vs. Feed Sulfur Coking Unit Fractionation Recovery Units vs. Reactor & Product Recovery Feed…
Partial Upgrading vs Full Upgrading Lower Cost HTL costs are significantly less than those of traditional upgrading 180,000 160,000 140,000 Western Canada / bbl capacity, 120,000 cost basis 100,000 Delayed Coking…
Net Return per barrel: HTL versus traditional supply chain 84.00 (13.15) Traditional * Diluent (11.50) Value Loss Shipping Netback (16/bbl Cost (15.00)* (6.15) discount to Production Brent) Opex Cost Energy 38.20 Cost…
Summary Heavy oil will grow in importance with increasing energy demand Challenges exist within the current heavy oil supply chain Field based partial upgrading is an economical and attractive processing option HTL leads partial…