What’s unconventional is the companies’ plan to remove diluent, which is added to raw bitumen from the Canadian oil sands before shipment. { As bitumen production in Alberta’s oil sands has grown over the past decade, so has demand for diluent, which is blended with molasses-like bitumen to help it flow through pipelines or be transported by rail. "d": "WTI Crude" Only 3 crude streams are derived from oil sands which are, 1.SYNTHETIC. Oilsands diluent pipeline partly closed following spill near Fort McMurray September 2, 2020 The Canadian Press CALGARY — Operator Inter Pipeline Ltd. says it has partially shut down its Polaris pipeline system following a leak detected on Crown recreational land just east of the Fort McMurray airport in northern Alberta. "width": "100%", Diluent costs Oil sands products frequently must be blended with diluent to be transported. Emulsions – Diluent System: SAGD Oil Sands Online Training is part of the Bitumen Processing chapter of the Fundamentals of Oil Sands Production Course. }, Exxon Mobil Corp.’s Imperial Oil shut down its oil-sands mine after a spill from a pipeline that supplies diluent to the operation, adding to the woes of Canada’s beleaguered energy industry. Bitumen would not flow through a pipeline efficiently, so it is mixed with diluents to be readied for pipeline transportation as diluted bitumen, or ‘dilbit.’ Diluents are usually natural gas condensate, naphtha or a mix of other light hydrocarbons. "title": "Commodities", The average density of western Canadian condensate (CRW) has increased slightly over time, reaching an average of 748 kg/m3 in 2018, while the density of Southern Lights Diluent (SLD) has remained relatively consistent, and averaged 659 kg/m3 in 2018. "d": "TSX Composite" ] And explain where, and why, diluent can be injected into the process. "d": "CAD/USD" The diluent is used to thin heavy crude petroleum oil (bitumen) sourced from oil sands in order to permit the pipeline transmission of crude oil to different locations. Oil sands diluent pipeline partially closed after spill near Fort McMurray. "d": "CDN Light Sweet" Earlier this year Enterprise Products Partners (NYSE: EPD) announced it would develop a project to ship diluent quality natural gasoline from Texas to Chicago where it could then be shipped to Western Canada on either Enbridge’s Southern Lights pipeline or Kinder Morgan’s (NYSE: KMI) Cochin pipeline. { Diluent costs are the total value of the diluent in the blended volumes of oil sands products sold. "largeChartUrl": "http://energynow.ca/data/", As the overall pool of diluent changes, oil sands producers must adjust how they use it. The oil sands, also known as tar sands, contain a mixture of sand, water, and oily bitumen. Dilbit stands for diluted bitumen. The company is in contact with its customers but has not yet identified the cause of the leak, nor does it have an estimate of how long it will take to make repairs and get the line running again, said spokeswoman Breanne Oliver. }, "d": "CDN Crude Index" }, Gross revenue This is the total revenue for the Royalty Project, minus the total diluent cost. As the overall pool of diluent changes, oil sands producers must adjust how they use it. The volume of diluent required to blend conventional heavy oil (i.e. "scaleFontColor": "#DADDE0", Most diluent recovery units are located near oil sands production sites in Canada and Venezuela. In a report, analysts at Tudor Pickering Holt & Co. warned the shutdown, if prolonged, could potentially affect the supply of diluent for steam-driven oilsands projects owned by companies including Imperial Oil Ltd., Husky Energy Inc., Cenovus Energy Inc. and Canadian Natural Resources Ltd. On its website, Inter Pipeline says its leak detection systems signalled an anomaly on Saturday morning and its Polaris and Corridor bitumen pipeline systems were shut down. Bottom line, ample supply of diluent is critical to getting Canada’s oil out via major pipelines. I understand I can unsubscribe from these updates at any time. The typical diluent for the oil sands is natural gas condensate, though shippers also used refined naptha or synthetic crude oil. Diluting bitumen makes it much easier to transport, for example in pipelines. The connections to those pipelines is expected to come online by early next year. The typical diluent for the oil sands is natural gas condensate, though shippers also used refined naptha or synthetic crude oil. Bitumen is a kind of crude oil found in natural oil sands deposits—it’s the heaviest crude oil used today. Oilsands diluent pipeline partly closed following spill near Fort McMurray . The 2 Best Canadian Stocks I’d Buy With $1,000 for 2021, Got $3,000? United States Patent 6712215 . It’s just one of the many interesting opportunities to profit from the development of Canada’s oil sands. According to the Alberta Energy Regulator, initial reports indicated about 550 barrels or 90,000 litres of light oil were released with no reported impacts to waterbodies or wildlife. Ongoing pipeline project delays and growth in crude-by-rail capacity from Western Canada are leading some oilsands producers to consider spending billions of dollars to build diluent recovery units. The average density of western Canadian condensate (CRW) has increased slightly over time, reaching an average of 748 kg/m3 in 2018, while the density of Southern Lights Diluent (SLD) has remained relatively consistent, and averaged 659 kg/m3 in 2018. Enbridge isn’t the only company working to get diluent to the region. Canada’s oil sands (Oil Sands 101) contain an incredible amount of oil. PURPOSE. "s": "INDEX:TTEN", Dilbit is a relatively clean bitumen (containing less than 0.5% water and solids) diluted with condensate, in the order of 20 to 40% by volume. Simply click the link below to grab your free copy and discover all 5 of these stocks now. The pipeline is used to move light petroleum such as condensate from Edmonton to the region where it is used by oilsands companies to dilute heavy bitumen so it will flow in a pipeline to market. "symbols": [ Emulsions – Diluent: SAGD Oil Sands Online Training is part of the Bitumen Processing chapter of the Fundamentals of Oil Sands Production Course. In 2019, the Polaris system transported an average of about 238,000 barrels per day of diluent, Inter says on its website. As bitumen production continues to grow in the midst of low oil prices, and Eagle Ford supplies continue to fall, oil sands producers are beginning to worry about the higher costs associated with more expensive diluent. "locale": "en", Bitumen derived from oil sands deposits in Alberta, Canada, has an API gravity of around 8°. "belowLineFillColorFalling": "rgba(255, 74, 104, 0.05)", In this fifth and final part of our deep dive into the oil sands, we’ll explore what diluent is and why it’s important. Not to alarm you, but you’re about to miss an important event. This includes current export pipelines like those from TransCanada (TSX: TRP) (NYSE: TRP) which currently handles a third of Canadian oil exports, as well as future projects like its Keystone XL and Energy East or Kinder Morgan’s Trans Mountain Pipeline expansion. } Diluent is a key yet unknown part of the oil business in Alberta and is becoming ever-more important as bitumen production from the oil sands increases. "s": "TVC:USOIL+NYMEX:WCW1! The annual average capacity of Southern Lights is 180,000 bpd, of which 162,000 bpd is secured by long-term contracts. Oil sands products frequently must be blended with diluent to be transported. Contract terminals Maps Add To Favorites. TradingView.com BACKGROUND OF THE INVENTION. "d": "Brent Crude" Just Released! Moving diluent will be an important fee generator for pipeline companies. * Prices as of Previous Day Close. It can be diluted with lighter hydrocarbons to produce diluted bitumen , which has an API gravity of less than 22.3°, or further "upgraded" to an API gravity of 31 to 33° as synthetic crude . Help us to improve EnergyNow, Give us your feedback, Renewed Cyber Worries in Oil and Gas – Geoffrey Cann, Reckless Michigan Politics: Line 5 Shutdown Would Cause at Least $20.8B in Losses to Michigan, Ohio, Indiana and Pennsylvania, Analysis Finds, Oilsands producers step up anti-pandemic measures as outbreaks rise in region, O’Toole’s Carbon Taxes Would Come with Big Costs for Families – Franco Terrazzano, Oil Climbs With Gasoline as Cyberattack Knocks Out U.S. The purpose of this chapter is to discuss why density adjustment of the recovered bitumen is necessary, and the products used as Diluent. We’re Motley! Thus, a diluent in the oil and gas industry will be a hydrocarbon liquid only. 28, 2000, application No. With oil sands production expected to nearly double over the next decade, demand for diluent is expected to surge to around 900,000 bpd in 2025, … Closer to Home - A Novel Effort to Recover Diluent for Reuse in Alberta's Oil Sands. { Describe the API Gravity scale, Explain why blending Diluent into the Bitumen stream is necessary for successful SAGD operation. Diluent requirements are estimated by taking into account the annual average blending ratios for each individual oil sands project. Commercial crude Stocks Down by 8.0Mb Last Week i understand i can unsubscribe from these updates at any.. Process at Cold temperatures bitumen has the viscosity that is somewhat like molasses bottom line, ample of..., heavy bitumen designed to move in tank cars there, Cold Lake wasn ’ developed. 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