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Overview Section 1: Petroleum in Our Lives ... - Centre for Energy

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TM<br />

Thank you <strong>for</strong> choos<strong>in</strong>g the eighth edition of<br />

<strong>Our</strong> <strong>Petroleum</strong> Challenge as a teach<strong>in</strong>g resource.<br />

After an extensive update made with <strong>in</strong>put from<br />

more than a dozen government and <strong>in</strong>dustry<br />

experts, we at the Canadian <strong>Centre</strong> <strong>for</strong> <strong>Energy</strong><br />

In<strong>for</strong>mation believe we have produced the most<br />

current and comprehensive educational guide to<br />

Canada’s crude oil and natural gas <strong>in</strong>dustry.<br />

<strong>Overview</strong><br />

Whether you are us<strong>in</strong>g <strong>Our</strong> <strong>Petroleum</strong> Challenge<br />

<strong>for</strong> the first time or simply updat<strong>in</strong>g your edition,<br />

this document will provide a brief overview of the<br />

eighth edition, <strong>in</strong>clud<strong>in</strong>g additions and changes.<br />

With fresh layout and a clearer structure, the eighth edition is designed to be simpler to read than ever<br />

be<strong>for</strong>e. <strong>Our</strong> <strong>Petroleum</strong> Challenge’s four sections can be read <strong>in</strong> sequence or <strong>in</strong>dividually, depend<strong>in</strong>g on<br />

your curriculum.<br />

The <strong>in</strong>tent of the book’s current structure is to move from a broad overview of hydrocarbons and their<br />

role <strong>in</strong> Canada to the specific steps required to br<strong>in</strong>g these resources to consumers, conclud<strong>in</strong>g with an<br />

exploration of susta<strong>in</strong>able development practices.<br />

For quick reference, you will f<strong>in</strong>d a complete list of graphs, maps, tables and illustrations on<br />

pages 124 – 125, along with reference material at the end of each section.<br />

• Def<strong>in</strong>itions: pages 138 – 143<br />

• Canadian timel<strong>in</strong>e: pages 131 – 137<br />

• Index: pages 144 – 149<br />

• Government and <strong>in</strong>dustry web sites: pages 127 – 129<br />

<strong>Section</strong> 1: <strong>Petroleum</strong> <strong>in</strong> <strong>Our</strong> <strong>Lives</strong><br />

This section provides a general summary of the importance of hydrocarbon-based products and Canada’s<br />

role as a hydrocarbon producer.<br />

Understand<strong>in</strong>g Crude Oil and Natural Gas (pages 6 – 13)<br />

• An overview of the contemporary role of hydrocarbons, def<strong>in</strong>itions of conventional and<br />

unconventional resources and the orig<strong>in</strong> of hydrocarbon resources.<br />

<strong>Our</strong> <strong>Petroleum</strong> Challenge 8 | TEACHER’S GUIDE | FEBRUARY 2013 1


Oil and Gas <strong>in</strong> Canada (pages 14 – 23)<br />

• An overview of Canada’s hydrocarbon reserves, the country’s global role as an energy<br />

producer and the economic benefits of oil and natural gas production.<br />

<strong>Section</strong> 2: Inside the Industry<br />

This section’s chapters take the reader through the processes that make up the oil and natural gas<br />

<strong>in</strong>dustry. Each chapter concludes with an exam<strong>in</strong>ation of the relevant measures required to protect the<br />

environment dur<strong>in</strong>g these activities.<br />

Exploration (pages 26 – 33)<br />

• An overview of the exploration process, from exam<strong>in</strong><strong>in</strong>g exist<strong>in</strong>g geological <strong>in</strong><strong>for</strong>mation to<br />

obta<strong>in</strong><strong>in</strong>g land access <strong>for</strong> seismic survey<strong>in</strong>g.<br />

Drill<strong>in</strong>g (pages 34 – 45)<br />

• An overview of the drill<strong>in</strong>g process, from site preparation to the drill<strong>in</strong>g rigs required <strong>for</strong> vertical<br />

and horizontal drill<strong>in</strong>g to well completion and abandonment.<br />

Production (pages 46 – 63)<br />

• An overview of produc<strong>in</strong>g techniques <strong>for</strong> both conventional and unconventional resources beg<strong>in</strong>n<strong>in</strong>g<br />

with crude oil and oil sands production, followed by natural gas and offshore production.<br />

Process<strong>in</strong>g (pages 64 – 70)<br />

• An overview of process<strong>in</strong>g crude oil and natural gas, from upgrad<strong>in</strong>g heavy oil and bitumen to<br />

remov<strong>in</strong>g hydrogen sulphide from sour gas.<br />

Transportation (pages 70 – 81)<br />

• An overview of oil and natural gas transportation, with an emphasis on pipel<strong>in</strong>es and<br />

supplementary <strong>in</strong><strong>for</strong>mation on other modes of delivery and storage.<br />

Ref<strong>in</strong><strong>in</strong>g (pages 82 – 87)<br />

• An overview of oil ref<strong>in</strong><strong>in</strong>g and petrochemical production, with a summary of Canada’s ref<strong>in</strong>eries<br />

and petrochemical plants.<br />

Market<strong>in</strong>g (pages 88 – 91)<br />

• An brief overview of how gasol<strong>in</strong>e and natural gas are sold <strong>in</strong> Canada.<br />

<strong>Section</strong> 3: Susta<strong>in</strong>able Development<br />

An entirely new section on contemporary issues related to susta<strong>in</strong>able development and the measures<br />

be<strong>in</strong>g taken by the oil and natural gas <strong>in</strong>dustry.<br />

Susta<strong>in</strong>ability (pages 95 – 99)<br />

• An overview of susta<strong>in</strong>able development (also known as susta<strong>in</strong>ability) and its development <strong>in</strong> a<br />

historical context.<br />

Susta<strong>in</strong>ability <strong>in</strong> Action (pages 100 – 105)<br />

• An overview of the general approaches that guide current <strong>in</strong>dustry actions on susta<strong>in</strong>ability.<br />

Regulation (pages 106 – 107)<br />

• A brief overview of how regulations affect each of the oil and natural gas <strong>in</strong>dustry’s sectors.<br />

Susta<strong>in</strong>ability <strong>in</strong> Action (pages 108 – 117)<br />

• An overview of the environmental and social issues that guide susta<strong>in</strong>able development and the<br />

actions be<strong>in</strong>g taken by the <strong>in</strong>dustry.<br />

<strong>Our</strong> <strong>Petroleum</strong> Challenge 8 | TEACHER’S GUIDE | FEBRUARY 2013 2


<strong>Section</strong> 4: Additional In<strong>for</strong>mation<br />

Supplemental <strong>in</strong><strong>for</strong>mation <strong>in</strong>clud<strong>in</strong>g tables <strong>for</strong> convert<strong>in</strong>g measurements, a selected bibliography, a list of<br />

the book’s graphical materials, onl<strong>in</strong>e resources, a Canadian oil and gas timel<strong>in</strong>e and relevant def<strong>in</strong>itions.<br />

What’s New<br />

In addition to extensive updates to the facts, figures and statistics, the eighth edition <strong>in</strong>cludes several<br />

new features <strong>in</strong>clud<strong>in</strong>g:<br />

Sidebars<br />

Focus sidebars provide further <strong>in</strong><strong>for</strong>mation on some of the most important contemporary issues related to<br />

oil and natural gas production.<br />

Steam-assisted gravity dra<strong>in</strong>age (SAGD) (p. 52 – 54)<br />

• An <strong>in</strong>-depth look at a technology that has unlocked bitumen <strong>for</strong> <strong>in</strong>-situ production.<br />

Shale development <strong>in</strong> Canada (p. 58 – 60)<br />

• An <strong>in</strong>-depth look at the development of unconventional shale gas <strong>in</strong> Canada, which requires the<br />

use of multi-stage hydraulic fractur<strong>in</strong>g.<br />

Pipel<strong>in</strong>e safety and <strong>in</strong>tegrity (p. 78 – 79)<br />

• An <strong>in</strong>-depth look at the technologies and techniques designed to <strong>in</strong>spect and monitor pipel<strong>in</strong>e<br />

operations.<br />

Susta<strong>in</strong>able Development section<br />

A completely rewritten section on susta<strong>in</strong>ability provides contemporary examples and historical context<br />

<strong>for</strong> today’s susta<strong>in</strong>able development issues and the oil and natural gas <strong>in</strong>dustry’s related actions.<br />

Visual <strong>in</strong>dustry summary<br />

A fold-out summary of the oil and gas <strong>in</strong>dustry, found on the <strong>in</strong>side cover, provides readers with a clear<br />

overview at a glance.<br />

What’s Moved<br />

The follow<strong>in</strong>g table outl<strong>in</strong>es those topics that have been moved with<strong>in</strong> the eighth edition.<br />

Seventh Edition<br />

Eighth Edition<br />

Orig<strong>in</strong>s of oil and natural gas pages 3 – 4 pages 12 – 13<br />

Where are crude oil and natural gas found? page 5 pages 18 – 19<br />

Canadian oil and natural gas history pages 8 – 12 pages 131 – 137<br />

see also: Evolution of Canada’s Oil and Gas Industry<br />

<strong>Petroleum</strong> products page 16 page 7<br />

Canada’s global role page 18 pages 20 – 21<br />

Canadian reserves pages 26 – 28 pages 18 – 19<br />

Climate change pages 31 – 32 pages 110 – 112<br />

Exploration pages 35 – 47 page 26 – 33<br />

Cutt<strong>in</strong>gs and cores page 38 page 27<br />

<strong>Our</strong> <strong>Petroleum</strong> Challenge 8 | TEACHER’S GUIDE | FEBRUARY 2013 3


Land – the basis of all wealth pages 39 – 40 pages 28 – 29<br />

Seismic surveys pages 44 – 45 pages 32 – 33<br />

Drill<strong>in</strong>g pages 48 – 64 pages 34 – 45<br />

Anatomy of a land-based drill<strong>in</strong>g rig page 51 page 36<br />

Stages of drill<strong>in</strong>g page 57 page 35<br />

Drill<strong>in</strong>g techniques page 58 pages 35 – 40<br />

Well control page 60 page 40<br />

Abandonment and reclamation page 61 page 42<br />

Hydrogen sulphide page 63 page 45<br />

Production pages 65 – 78 pages 46 – 63<br />

Unconventional natural gas page 68 pages 58 – 61<br />

Offshore petroleum pages 71 – 74 pages 61 – 63<br />

see also: Canada’s Evolv<strong>in</strong>g Offshore Oil and Gas Industry<br />

M<strong>in</strong><strong>in</strong>g and <strong>in</strong>-situ bitumen pages 75 – 78 pages 50 – 57<br />

Process<strong>in</strong>g pages 79 – 84 pages 64 – 69<br />

Natural gas process<strong>in</strong>g pages 80 – 81 pages 67 – 69<br />

Crude oil process<strong>in</strong>g pages 82 – 83 pages 65 – 67<br />

Transportation pages 85 – 96 pages 70 – 81<br />

Storage page 86 page 76<br />

Pipel<strong>in</strong>e <strong>in</strong>tegrity pages 87 – 88 pages 78 – 79<br />

Smart pigs page 89 page 73<br />

Oil pipel<strong>in</strong>es pages 90 – 91 pages 71 – 72<br />

Natural gas pipel<strong>in</strong>es pages 92 – 93 pages 72 – 76<br />

Natural gas pric<strong>in</strong>g / distribution page 95 pages 76 – 78<br />

Natural gas <strong>for</strong> vehicles page 96 page 91<br />

Ref<strong>in</strong><strong>in</strong>g pages 97 – 102 pages 82 – 87<br />

Oil ref<strong>in</strong>eries page 98 page 83<br />

Products from ref<strong>in</strong><strong>in</strong>g page 100 page 83<br />

Benzene and sulphur page 101 page 86<br />

Petrochemical plants page 102 page 85<br />

Market<strong>in</strong>g pages. 103 – 105 pages 88 – 91<br />

Gasol<strong>in</strong>e pric<strong>in</strong>g page 104 page 89<br />

Used oil page 105 page 91<br />

Measurements page 113 pages 120 – 121<br />

Glossary pages 117 – 131 pages 138 – 143<br />

<strong>Our</strong> <strong>Petroleum</strong> Challenge 8 | TEACHER’S GUIDE | FEBRUARY 2013 4

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