Oil Sands History: Extracting Energy Resources

The possibility of using the oil sands as a viable supplement to current energy resources is a notion that is becoming increasingly popular.  When looking at the oil sands as a means for energy production it is important to consider how the region was discovered and the history behind the development of extracting and processing the resources from the oil sands.  Did you know that the history of the oil sands dates back over 200 years when Europeans spotted bitumen along the banks of the Athabasca River?

Early History of the Oil Sands

In 1778 Peter Pond was among the first to discover the oil sands during his quest for harvesting Fur trees in the surrounding areas.  A decade later, Alexander Mackenzie noted his observations on the oils sands.  He documented bituminous fountains, and how the fluid state of the mixture could serve as a water sealant for canoes.

energy production

Sir Alexander Mackenzie

Many other explorers were also intrigued by the oil sand mixture. In 1875 the Canadian government started funding exploration of the oil sands, which led to several expeditions that confirmed the region of Northern Canada would produce great economic value when the time came to develop the expansive territory. It was obvious, even 200 years ago, that the oil sands could be a sound economic venture that opens new doors in energy resources and energy production.

Industrial Development of the Oil Sands

energy production

The first attempts to extract oil from bitumen were made under the assumption that there were large oil wells beneath the concentrations of bitumen. Between 1906 and 1917 two dozen wells were drilled in the hopes of striking it rich, but no such result occurred.

In 1913 came the first attempt to use a hot water flow to separate the oil sand mixture. The extracted material was shipped to various cities in Canada to be tested as a new way to pave roads; however, it could not compete with asphalt. Though oil sands were not as economical as asphalt, the groundwork for extracting and separating the oil sand mixture with hot fluid was seen as viable.

In 1920 entrepreneur R.C. Fitzsimmons opened the first bitumen processing plant, which used hot water flow to separate the bitumen to yield oil. Fitzsimmons had the right idea; however, the financial climate was not suitable for such a costly means of energy production.  By the early 1950s the plant shut down.

By 1962 the government in Alberta realized the value of extracting and refining bitumen from the oil sands, not to replace conventional oil, but to supplement oil by using other types of energy.  In 1967 Suncor opened the first oil sands production plant.  Two years later Syncrude was approved for oil sands production. Syncrude started building a plant in 1973, and five years later their first barrel of oil was shipped.  Production grew, and by 1998 Syncrude shipped their 1 billionth barrel of oil.

energy production

A proposed 1,700-mile pipeline would allow crude oil processed from Canada’s oil sands to travel to refineries along the Gulf Coast.

The oil sands continue to develop into one of the leading resources to supplement current oil production.

Want to know more?

Victory Energy Operations is a custom industrial-duty boiler manufacturer who specializes in AB and NASB certified steam energy production equipment. Providing custom boilers for enhanced oil sands extraction, food processing, universities and utilities plants; Victory Energy products help facilities run smart by increasing energy efficiency and reducing waste.  Contact Victory Energy to learn how their custom boiler solutions can save energy and increase production in your facilities.

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A Look at U.S. Energy Production by Source

It is important to consider energy production by source when it comes to evaluating energy use in the United States. Understanding the relationship between primary and secondary sources of energy sheds light on the current energy production as well as the types of energy used to facilitate a given sector. An article by the U.S. Information Administration communicates the relationship between a given energy source and its end user.

Energy Production

 

Primary sources of energy such as oil, natural gas, coal, nuclear, and renewable energy produce secondary energy such as electricity. The major sectors that use primary energy include: residential and commercial buildings, industry, transportation, and electric power. Each of these sectors uses varying amounts of each primary energy source (oil, natural gas, coal, nuclear, renewables). In 2010, 98 quadrillion Btu of energy was used by the United States: 37% in the form of oil, 25% natural gas, 21% coal, 9% nuclear power, and 8% renewable energy. Each sector used varying amounts of the different types of primary energy sources.

Energy Production

A power plant in California utilizes small, flat mirrors to track the sun and reflect the sun’s heat to a tower-mounted steam boiler. This steam powers a turbine and generator to produce electricity. Photo furnished by Victory Energy Operations, LLC and eSolar.

Residential and Commercial Buildings: Residential and commercial buildings use 11 quadrillion Btu annually, which translates to 11% of the energy consumption in the United States. This sector is responsible for 34% of all natural gas used to create energy.

Industrial: The industrial sector uses a variety of primary energy sources to create secondary energy. It uses 33% of natural gas sources, 22% of the oil source, and 28% of the renewable energy source.

Transportation: Seventy-one percent of oil (petroleum) is used in the transportation sector, thus policies focused on reducing oil consumption are focused on the transportation sector.

Electric Power: Ninety-two percent of the coal source is used to facilitate the electric power sector. Only 1% of the oil source is used for this sector, this means that policies affecting electricity generation will have a much larger impact on coal, than on oil. One hundred percent of all nuclear electric power generated is used in the electric power sector as well as 50% of the renewable energy source.

This information is essential when exploring new energy solutions. The mix of primary energy sources varies among the different demand sectors. Energy policies are influenced by relationships between the energy source and the sector that uses that source.

Energy Production

USA Power Plant in Pennsylvania equipped with a Combined Cycle Utility HRSG. © 2012 Victory Energy Operations, LLC

Victory Energy is an advocate of new energy solutions that support U.S. energy efficiency. Victory Energy assists the commercial sectors, as well as industrial and electric power sectors, by providing a variety of all types of custom engineered steam boilers and enhanced heat recovery systems to increase efficient and clean energy production. To learn more about our quality clean solutions visit, www.victoryenergy.com.

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The Future of US Fossil Fuels: 2020 Outlook

Recent studies by consulting firm PFC Energy conclude that the future of U.S. fossil fuels will be a major contributor to energy on a global scale. Part of the nation’s strategy in managing the stewardship of these fossil fuels will rely partly on industrial boiler manufacturers innovating technologies in order to increase efficiencies. The analysis of the study suggests that the United States will become the world’s top producer of fossil fuels by 2020.

Industrial boiler manufacturer

An industrial boiler manufacturing facility located in central Oklahoma.
© 2012 Victory Energy Operations, LLC

The United States is on pace to top its previous peak production of fossil fuels, taking into account, oil, natural gas, and natural gas liquids. Saudi Arabia will continue to be the leader in oil production; however, natural gas reserves in the United States and Canada will make them larger players in the fuel production market. It is predicted that the combined U.S. and Canadian oil production will reach an all-time high by 2016.

By the year 2020, the United States will hit 22 million barrels of oil equivalent. It is important to note that natural gas will make up 58 percent of the 22 million barrels. Technology is one of the driving forces behind the bright future of U.S. fossil fuels.

Enhanced oil recovery methods, as well as other forms of extraction from shale gas formations, will be contributors to the growth of fossil fuel production.

Enhanced Oil Recovery: Enhanced oil recovery will be contributor to the future of U.S. fossil fuels. Processes such as Steam Assisted Gravity Drainage (SAGD) will make accessible resources that previously have been too costly to extract and refine.

Extraction of Shale Gas: Technology improvements, including hydraulic fracturing, have allowed energy companies to access natural gas from shale rock that was once too complex to access economically.

industrial boiler manufacturer

While more sustainable and renewable energy sources continue to emerge, Victory Energy looks to support them and is committed to making the most out of our finite resources in fossil fuels.  Jeff Coale, Vice President of Victory Energy, reinforces that concept by stating: “Parallel to the significant reserves of new domestic oil and gas North America continues to develop, we will innovate and leverage technology to maximize the productive use of all energy sources.” Victory Energy supports the future of U.S. fossil fuels by being a progressive and innovative industrial boiler manufacture. To learn more on how Victory Energy can assist your energy application visit victoryenergy.com.

industrial boiler manufacturer

An industrial boiler being prepared for shipment by rail.
© 2012 Victory Energy Operations, LLC

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Victory Energy Operations, LLC is proud to announce the addition of Mr. Michael Butcher as Applications Engineer.

Victory Energy Operations, LLC is proud to announce the addition of Mr. Michael Butcher as Applications Engineer.

Economizers

Michael J. Butcher
Applications Engineer

Mr. Butcher is an Applications Engineer with 7+ years of professional experience in salesproposal generation, improving sales processes, and developing customer relationships.  His background in software engineering has provided an avenue to improve the in-house methods for sales as well as order implementation; thus improving the sales to customer relationship in many facets.  He has significant experience in analyzing procedural flow and innovating software to provide faster sales turnarounds as well as more accurate and user friendly customer communications.

Mr. Butcher is customer service driven, and believes that “When improving internal procedures and processes, it should be done in a way to improve the customer experience; because when you make it easy to do business, customers will keep coming back.”  When asked what he liked about working at Victory Energy, Mr. Butcher stated, “The driving force at Victory is not just the financial bottom line but going that extra step to make a better marketplace with the products we provide.”

Birthday: August, 1982

Career experience:

  • Pressure Vessels – package boilers and economizers.
  • Enhanced Heat Recovery – design and manufacture of heat exchangers from economizers to HRSG modules.
  • Industrial Maintenance and Construction – maintaining & replacing heavy equipment within the manufacturing line of large casting plants.

Core competencies:

  • Estimating
  • Customer Relations
  • Technical Assistance
  • Software Development
  • Process Improvement
  • Personnel Management
  • Sales Network Creation

Key achievements:

  • 7+ years experience in sales and customer relations.
  • Duties have included: sales, negotiation of contracts, web and desktop based programming, product line development, conceptual design, fabrication and maintenance.

Education: Oral Roberts University – Bachelor of Science –Computer Engineering

Organizations: Institute of Electrical and Electronics Engineering (IEEE)

Hobbies: Hunting, working out, watching the NY Giants, and renovating classic cars.

Family: Happily married with plans to have kids in the future, but for now my wife and I are just enjoying our time together. 

Community involvement: Church and community service projects.

Favorite sports: Football & Softball

Favorite vacation spot:  Pensacola, FL – visiting family, dinners with old friends, and the emerald coast… it can’t get much better.

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US Energy Efficiencies Create Jobs

In a day and age when the national unemployment rate is hovering around 9%, job creation is at a premium. One of the most effective ways of creating new jobs is through improving U.S. energy efficiencies. How then, does an industrial plant facility become more energy efficient? Many facilities have implemented HRSG’s (Heat Recovery Steam Generators) and Economizers to maximize efficiency, which results in more job creation on a broad scale.

How can Energy Efficiency create Jobs?

The American Counsel for an Energy-Efficient Economy (ACEEE) produced findings that help show the importance of U.S. energy efficiencies when achieving job creation. Improvement in energy efficiencies can create jobs in one of two ways:

  1. The initial investment into energy efficiencies creates opportunities for workers via infrastructure improvements, which stimulate opportunities for the construction sector and the industries that support it.
  2. The energy savings that result from the investment can be put to use in many ways that, in turn, support job creation.
HRSG

Installation of a Horizon® Combined Cycle Utility HRSG.
© 2012 VICTORY ENERGY OPERATIONS, LLC

How Are Industrial Facilities Increasing Energy Efficiency?

Two common ways plants increase their savings through energy efficiencies are through the implementation of HRSG’s and Economizers.

 

HRSG

Installation of an O-type Horizon®HRSG.
© 2012 VICTORY ENERGY OPERATIONS, LLC

 

HRSG – A Heat Recovery Steam Generator, also known as an HRSG, captures heat that would otherwise exit a stack, and uses that heat to make steam. This steam provides added energy support to the operation, so that the plant can run more efficiently, and generates dollars in savings as well.

Economizer – An economizer, as the name suggests, economizes or saves fuel. It does so by using the energy contained in the hot exhaust flue gas from the boiler to preheat the feed water before it enters the boiler. The fuel that would have been consumed in the boiler for this thermal duty is consequently saved.

HRSG

Installation of an Explorer® Series Economizer.
© 2012 VICTORY ENERGY OPERATIONS, LLC

HRSGs and Economizers save an operation money, which can then be used to aid job creation.  U.S. energy efficiencies will continue to advance with the growing demand for alternative sources of energy.

Victory Energy supports job creation by improving U.S. energy efficiencies through the design and manufacturing of HRSGs and Economizers that are engineered specifically with your unique application in mind.

Jeff Coale, VP of Victory Energy, gives his stance on how energy efficiencies stimulate the economy: “I agree that energy can drive a sustainable economic recovery.  Not only will you employ engineering, manufacturing and construction support for energy projects, but once the project is complete, the end user is able to realize long term savings in their energy costs.”

To find out how your operation can save money by becoming more energy efficient visit victoryenergy.com. Not only can your operation save money, it can improve job creation.

 

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Co-generation Technology Impacts Carbon Emissions & Efficiency

 

Co-generation technology has the ability to significantly reduce a power plant’s carbon footprint and increase efficiency. Compared to the 30-35% energy efficiency produced by conventional fossil fuel fired power plants, a combined heat and power (CHP) process can boast over 80% efficiency due to effective waste heat recovery. The CPH process now provides nearly 17% of our nation’s electricity and reduces expenses to the customer by 50%. In this video, industrial boiler manufacturer, Victory Energy discusses the process and dramatic benefits of co-generation technology and how it can improve your facility operations. To learn more about co-generation technology and efficient heat recovery processes visit: http://victoryenergy.com.

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Victory Energy: Top Blogs of 2011

Economizers and the Cost of HRSG Operations

Heat Recovery Steam Generators (HRSG) operations, such as those used in ethanol plants, have long used “economizers” to help reduce their fuel costs for years.

The purpose of HRSG Economizers is actually pretty simple: remove as much heat as possible from what would otherwise be exhausted from the plant, then use that thermal energy to preheat the incoming water so it uses less fuel to become steam.  Bottom line, there is no reason to allow the fuel dollars, that you have already paid for, to go up the stack.  What otherwise would be “waste heat” becomes recovered (and useful) heat.

In ethanol plants, a considerable amount of water is used in the cooking operations.  In addition, a significant amount of steam is used up in the process and not returned as condensate, accounting for high amount of make-up water.

To read the rest of this blog click here.

The Application of Waste Heat Recovery Boilers

Waste Heat Recovery Boilers create energy in the form of steam by repurposing wasted heat from many different types of processes. One power plant in Pennsylvania recently experienced the full benefits of innovative Waste Heat Recovery Boilers.

In the past, this plant supplied electricity to the surrounding area by using coal-fired boilers to turn a steam turbine. The coal-fired boilers have been decommissioned; however, the steam turbine is intact. The plant installed two gas turbines to take the place of the coal-fired units. With the addition of the two gas turbines, this power plant reaped the benefits of recovering heat from their exhaust. With the implementation of two waste heat recovery boilers the plant improved efficiencies by routing steam to the existing steam turbine and in turn reduced its carbon footprint.

To read the rest of this blog click here.

What is a Heat Recovery Steam Generator (HRSG)?

There are many different types of industrial boilers used for various projects and applications.  A Heat Recovery Steam Generator (HRSG) is a boiler that captures the exhaust from a natural gas or diesel engine, a combustion turbine, or other process and uses it to generate steam.  In other words, it is used to recover the energy produced by hot exhaust gases in power generation or other thermal process and then uses this energy to produce steam that can then be used in other processes like that of driving a steam turbine.  There are a few variations on the standard design.  Some include supplemental or duct firing, which provide more energy, which in turn produces more steam.  Other variations include diverter valves to control the inlet flow, or emissions controls (i.e. Selective Catalytic Conversion or SCR) to help reduce the nitrogen oxides.

To read the rest of this blog click here.

Refining the Oil Sands

Once bitumen (a heavy, carbon rich form of natural oil, also known as the oil sands) is extracted from the ground, a refining process must take place before it can be pipelined and used in refineries.  The subject of how to turn bitumen into usable synthetic oil has been debated for years.  There are different ways to take oil sands and process them into suitable synthetic oil.

Carbon Rejection through Thermal Cracking: The most common way of refining the bitumen gained from oil sands is called carbon rejection. This uses a coking process to break down the bitumen.  This is one of the more cost-effective ways of converting the oil sands into synthetic oil. In this process, the heavy fuels, like bitumen, are heated under pressure in large vessels until it reaches the point of “thermal fracture,” breaking down the mixture.  The downside to this process is that it creates a significant amount of a solid waste byproduct called coke.

To read the rest of this blog click here.

Oil Pipeline Project Expands Energy Resources

With gasoline prices hovering near $4 per gallon, unemployment above 9 percent and crude oil prices between $90 and $100 per barrel, aren’t you looking for some concrete actions to address these issues?

Well, there is an oil pipeline project that will help address many of those issues if and when approval is granted for it to go forward.  It is the Keystone XL Pipeline project.

What is the Keystone XL Pipeline?

The proposed Keystone XL Pipeline project will expand an existing pipeline, bringing crude oil obtained from tar sands in Canada to existing refineries in Texas.  It might help to know that extracting oil from tar sands and shipping it via pipelines is not a new technology. Approximately 50,000 miles of pipelines already carry oil and gas, some of it from tar sands, throughout the United States.

To read the rest of this blog click here.

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Advanced Firetube Boiler Design

When considering your energy needs on a job-to-job basis, many times selecting the proper firetube boiler design is critical to ensure that it meets the needs ofyour application. When deciding which type of firetube boiler design is right for your specific application, it is important to understand what your needs are so that the best possible technology outcome can be selected.

Firetube boiler Design

In the application case study of a Modesto, Calif.-based food manufacturer, achieving ultra-low emissions was one of their primary objectives. They also wanted the boiler unit to be durable and maintainable.  In short, they wanted a firetube boiler design that went above and beyond typical industry standards.

Firetube boiler design

How did they go about achieving their needs in a firetube boiler design?

Ultra Low NOx Burner – They decided on an Ultra Low NOx  9 PPM firetube/burner package, complete with burner management system. The custom firetube boiler supplied, combined with the firetube boiler, enabled them to reduce emissions while maintaining optimal efficiency.

Industrial Boiler Manufacturer

Furnace Size – The end user  quickly realized the value in a conservatively sized furnace section to assist in achieving the ultra-low NOx emissions they desired.

Pressure Part Thickness – Going beyond industry standards for the minimum pressure part thickness added to the robust nature of the firetube boiler design, increasing unit longevity and reliability.

Water-cooled Rear Wall –The end user  chose to implement a water-cooled rear wall on their boiler. The water cooled rear wall design not only enhances reliability, it also reduces maintenance costs by eliminating the need to repair refractory that is often associated with “dry-back” units.

Rifled Tubing – They also chose to implement rifled tubing to enhance heat recovery, thereby getting the most out of the usable heat that can be made into energy.

Industrial Boiler Manufacturer

What is right for your application?

Victory Energy specializes in going beyond “industry standards” in all steam boiler solutions. They see the value in providing firetube boiler design that caters to the specific needs of the customer.  Victory Energy not only manufactures quality firetube boilers, but they guide and direct the customer in finding ­­operation visit victoryenergy.com.

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The Application of Waste Heat Recovery Boilers

Waste Heat Recovery boiler

Pennsylvania power plant utilizing a Combined Cycle Utility HRSG.

Waste Heat Recovery Boilers create energy in the form of steam by repurposing wasted heat from many different types of processes. One power plant in Pennsylvania recently experienced the full benefits of innovative Waste Heat Recovery Boilers.

In the past, this plant supplied electricity to the surrounding area by using coal-fired boilers to turn a steam turbine. The coal-fired boilers have been decommissioned; however, the steam turbine is intact. The plant installed two gas turbines to take the place of the coal-fired units. With the addition of the two gas turbines, this power plant reaped the benefits of recovering heat from their exhaust. With the implementation of two waste heat recovery boilers the plant improved efficiencies by routing steam to the existing steam turbine and in turn reduced its carbon footprint.

How was this accomplished?

Extensive Modeling – Three types of models were used to optimize the unit’s efficiencies. Thermal Performance Models were used to determine the right types of heat transfer surfaces and the correct amount of surfaces for the specific application. Physical Models were used to ensure proper distribution of flue gas to the duct burner. Virtual models using Computational Fluid Dynamics (CFD) were also used to gain insight to precise temperature profiles and gas distribution.

HRSG

Virtual flow model of a Combined Cycle Utility HRSG.

 

Shop Assembled Modules – The plant experienced the value of shop assembled modules as opposed to erecting the waste heat recovery boilers in the field. Erecting these type of units in the field is costly and provides limited access to automated fabrication equipment typically found in permanent manufacturing facilities.


HRSG

Shop assembled module- Combined Cycle Utility HRSG

 

Emission Reduction – Reducing emissions from the gas turbines was a major goal for this customer. Selective Catalytic Reduction (SCR) was used by injecting ammonia upstream of the catalyst in the flue gas path to help convert nitrogen oxides (NOX)into diatomic nitrogen and water. CO catalysts were also in the waste heat recovery boilers to reduce CO emissions.

Single Supplier – The most important aspect of accomplishing the integration of two waste heat recovery boilers into an existing power plant was dealing with only one supplier. The customer saw value in knowing exactly who to contact for all related questions on the project. The challenge of using multiple suppliers for a project with this level of complexity would increase the risk of the project exponentially. Victory Energy not only supplied the waste heat recovery boilers for this project, but they supplied all of the steam-related components from the turbine exhaust outlet to the stack outlet.

Waste Heat Recovery boiler

Installation inspection of Combined Cycle Utility HRSG. Photo courtesy of Victory Energy Operations, LLC.

Can your operation benefit from a waste heat recovery boiler?

Almost any industrial process that generates large amounts of exhaust heat can benefit from some form of heat recovery. Victory Energy specializes in engineering solutions that will help your operation capture wasted heat and turn it into usable energy.  For more information on how your operation can benefit from heat recovery, visit www.victoryenergy.com.

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Oil Sands Development on the Rise

There has been an ongoing buzz in the energy industry regarding the current state of the oil sands development. The vast energy potential that resides within the Canadian oil sands reserve has been a catalyst for innovation and process improvement to strengthen domestic sources of energy. In a recent article published in the Economic Times, author Gaurav Ghosh presents several points that explain why the present economic climate is ideal for oil sands development.

Oil Sands Development

The Market Price of Oil

One reason the economic climate is prime for oil sands development is the market price of oil. It is popular opinion that oil as a commodity has entered an extended period of elevated prices.  High market price for oil helps consumers and potential investors understand the value proposition of extended oil sands development. With the price of oil at a sustained high rate, companies feel more comfortable seeking opportunities to capitalize on various unconventional ways of extracting oil. The profitability of oil sands development will continue gaining validity as long as the price of oil remains high.

Improved Methods of Extraction

Another factor that makes oil sands development more profitable is the advancements in process technology that have improved extraction methods. Drilling technology has made sizeable advancements in reducing production costs. The physical drilling of the well bores is one of the most costly steps in the production process, and as this cost goes down profitability rises. Advancement in the steam injection process has also played a large role in developing cost-effective ways of extracting energy in the form of oil.

Oil Sands Development

Energy Security

Oil sands development also promotes reliable domestic sources of fuel. The current sources of crude coming from less stable parts of the world add an increased variable when looking at oil stability. When the tar sands continue to develop, the Western regions will emerge as substantial player in the global energy market.  Not only will the Western crude be used on a domestic level, but other countries, such as China, have expressed interest in obtaining Western crude by investing billions of dollars into oil sands development.

Want to know more?

To see the full article on the economic role of the oil sands development visit http://blogs.economictimes.indiatimes.com/choicerules/entry/unconventional_oil_tar_sands_and_extra_heavy_crude. More detailed information on the oil sands development can also be found at the Victory Energy blog. Victory Energy specializes in providing steam to advance oil sands development.

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