Managing Risk in a Thermal Oil Sands Development Project Through Appropriate Technical and Well Operating Design

Oil sands bitumen deposits in western Canada represent the third largest hydrocarbon resource in the world and with most requiring in-situ recovery technology, the safe and environmentally-responsible development of this resource is a key opportunity for Canada and the energy industry. Shell Canada Energy has operated thermal wells in Alberta for over 50 years in a number of different, steam- or other energy-based, recovery projects. Facing an ever-increasing regulatory demand for thermal wells that will provide safe long-term operation and stable hydraulic isolation from the thermal zone after abandonment, while meeting Shell’s operating principles in protecting groundwater and air and a minimized surface footprint, the technical demands to achieve this continue to grow. The key to overall technical success and reliable well integrity has been a systematic understanding of the parameters that lead to an appropriate and safe casing design, despite the need to operate the well casing at above-yield conditions. Through a combination of controlled materials testing, evaluation of full-scale connection behaviour under dynamic live conditions, and well monitoring during the operating phase, Shell Canada has been able to develop a comprehensive knowledge base over the past years that has enabled it to achieve a near-zero well failure rate. This has been complemented by a comprehensive well integrity monitoring program that not only allows periodic confirmation of mechanical integrity of well components, but also detection of inter-well formation anomalies that may lead to well failure or loss of hydraulic isolation if left unidentified. The know-how will be leveraged in the Carmon Creek thermal development project which is currently in detailed engineering design and, if approved, will start with two back-to-back development phases, each with a nominal target oil production rate of 40,000BPD.