An optimization energy model for the upgrading processes of Canadian unconventional oil

This paper presents a new energy optimization model for the Oil Sands upgrading operations. The proposed mathematical model determines the most suitable configuration of upgraders required for maintaining the downstream operations of the Oil Sands industry at minimum cost while meeting environmental regulations and product demands. The novelty of this work is that the model focuses on the upgrading stage of the oil operations and considers the yield of naphtha as key production constraint. The proposed optimization model was validated using data reported in the literature for the historical Oil Sands operations in 2003. Likewise, the mathematical model was used to forecast the 2035 Oil Sands upgrading operations using information recently reported in the literature. Also, the 2035 case study was used to show the effect of varying natural gas prices, CO2 emission and naphtha yield production constraints on the Oil Sands upgrading operations. The results show that the proposed mathematical model is a practical tool to determine the energy production costs of the Oil Sands upgrading operations, planning and scheduling the number and type of upgrader plants in this industrial sector, and identify the key parameters that affect the Oil Sands upgrading operations.