November 1

Going Sideways: Horizontal Evaporators in SAGD IDE Technologies took a vertical SAGD evaporator and tipped it over Alberta Oil The Opportunity It’s well known that in situ oil recovery techniques are significantly increasing Alberta’s oil production profile – 2012 marked the first year steam-assisted methods contributed more barrels toward overall oil sands production than mining. But it’s also been a hassle for some operators to handle. Sunshine Oil Sands Ltd.’s West Ells project is one example where the company is seeing short-term delays and inflating costs. Direct costs for the project are now estimated to be $496 million, up $28 million from an earlier estimate, according to a Government of Alberta report. Costs have been rising for numerous reasons: companies spacing their wells too aggressively, maintenance cost overruns, legal disputes and other mishaps. But one of the most pressing might be efficiency shortcomings in the supply chain. And in SAGD operations, evaporators are likely the most cumbersome bits of equipment to get to site for a reasonable price. Evaporators that tower over operations like Cenovus’s Christina Lake project have to be assembled and erected on site using a crane. IDE Technologies Ltd. is attempting to slim that cost with its newly manufactured horizontal evaporators. While horizontal mechanical vapor compression (MEVC) isn’t entirely new, IDE has found a fairly novel way of employing its technology – and it all fits on the bed of a truck. The Strategy IDE manufactured its SAGD evaporators with a focus on reducing the energy consumption of the technology while constructing it compactly so transporting costs could also be reduced. It was roughly a two-year process. As a result the evaporators operate between 10 and 15 kilowatt hours per cubic meter, or about 30 per cent lower than vertical units, according to Gilad Cohen, head of industrial water business unit at IDE. Similar units have been installed in other markets: two MEVC systems, each with a capacity of roughly 600 cubic meters per day, have been operated by Wintershall, a German producer, for over 20 years. The efficiency of evaporator systems is stricter than ever, following the Alberta government’s recent policy to cut boiler let-off from 20 per cent down to 10, creating an ever greater need to maximize the heat from the vapors. The company also split its compression chamber into two compartments, cutting down on chemical buildup in the evaporation process. The evaporators are roughly 15 meters long and 3.5 meters high, allowing them to be assembled in Edmonton and shipped to site from there. IDE designed the evaporators in order to eliminate assembly and cut costs in maintenance; the compressor is far more accessible when lying horizontally, the theory goes, than when it is off the ground, allowing operations to continue while technicians solve the problem. Each horizontal evaporator can be loaded onto a single flatbed trailer and trucked to site, though the horizontal technology tends to have lower capacity. One particular IDE model reaches up to 30,000 barrels per day. The Payoff IDE is a fairly new company in the Canadian market and has been seeking out energy firms for a little more than four years. The company was in talks with Canada’s Oil Sands Innovation Alliance over the summer to raise the profile of the MEVC evaporators in the hope IDE would enter into pilot programs with prominent producers. It also announced a partnership in July with Clean Harbors, a chemical development and cleaning company, to integrate the designs of both companies into existing and future projects. The question is how to make a good product better, Cohen says. “Once we prove the attraction, I think we’ll see a lot of interest.”