A New Look at Heavy Oil By: Carlos A. Cabrera Date: November 20, 2013 2013 Ivanhoe Energy All rights reserved
The Future is Bright for Ivanhoe Energy Meeting the supply gap of crude oil demands fresh, innovative approaches to improve efficiencies in production, transportation and conversion. Ivanhoe Energy Presentation 3 Ivanhoe Energy…
Ivanhoe Energy: Undervalued With Upside Potential Ivanhoe Energy is an international petroleum company differentiated by its heavy oil upgrading process: HTL. It also has core geologic assets in Canada and Ecuador. Tamarack, Canada…
Crude Oil Demand & Supply Future demand to be met by heavy oil production Crude Oil demand is estimated to grow byForecasted 15% in the next 10 Growth Crude Oil years. Heavy Oil can fulfill approximately 10% of that demand Demand 85…
Industry Methods Currently used to Develop Heavy Oil Using heat for transportation and production Upgrading in the field with high complexity and high cost upgraders Diluting the bitumen and shipping to refineries Ivanhoe…
Headwinds to Develop Heavy Oil: Production is energy intensive High viscosity, low API limits transportability High capital requirements challenge economics Tight oil in North America and conventional oil finds Residual heavy oil…
Tailwinds Supporting Heavy Oil Development: Sub-surface and surface extraction improvements Using HTL results in: Pipeline de-bottlenecking (no need to ship diluent) Energy efficiency Synthetic crude produced can be processed in…
A Paradigm Shift for Upgrading Heavy Oil Upgrading Today Upgrading Tomorrow Ivanhoe Energy Presentation 9
Commercializing HTL: Business Models Field Integrated Model eg. Tamarack, Block 20 Midstream Model Projects in development Ivanhoe Energy Presentation 10
Partial Upgrading vs Full Upgrading Lower Cost HTL partial upgrading is significantly more efficient than traditional upgrading 70,000 60,000 50,000 USGC cost basis / bbl capacity, 40,000 Delayed Coking Upgrader,…
HTL vs. Traditional Upgrader Space Requirements (30,000 BPD) The 12 Plot space requirements of HTL is approximately 31% of the current delayed coker technology in use today 10 HECTARES (10,000 m2) 8 10.3 9.3 6 8.2 4…
Steam Equivalent Energy Required for Extraction HTL provides all, or a majority of, the energy required for 7 heavy oil production 6 5 Barrels Steam per 4 Barrel Production 3 2 Energy provided by HTL per barrel of…
Comparing HTL SCO quality against other crudes Partial upgrading provides SCO that is higher value and can be readily processed by most refineries Decreasing Market Value 102/bbl 100/bbl 94-98/bbl 95/bbl 86/bbl 72/bbl 100 Crude Oil…
Net Return per barrel: HTL versus traditional supply chain A Range of 20 to 25 per barrel of additional netback is realizable by HTL 84.00 (13.15) Traditional * Diluent (11.50) Value Loss Shipping Netback (16/bbl Cost (15.00)*…
Posing the Questions Any technology that could enable upgrading to take place closer to the source, potentially even inside the reservoir, would improve and facilitate the development of heavy oil and oil-sands. It would make…
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