Bahrain's oil minister, Abdulhussain Mirza, told the
Heavy Oil World MENA conference that heavy oil reserves in the region were
estimated at 1 trillion barrels, or 28 percent of total world reserves, but
historically accounted for little more than 10 percent of production.
"The vast reserve demonstrates the importance of
heavy oil as a future energy source, one that cannot be overlooked and,
therefore, companies that position themselves early in the heavy oil business
are likely to win the game," Mirza said, according to local news reports.
Bahrain recently signed an agreement with Mubadala
Development, an Abu Dhabi state-owned firm, and Occidental Petroleum of the US,
to boost heavy oil production in the Awali field, one of the oldest in the
region and Bahrain's only oilfield.
Using advanced oil recovery technology and developing the
heavy oil sectors of the field could double or triple its production from
32,000 barrels a day currently, Mirza said.
Heavy crude oil is distinguished from light crude oil
because it does not flow as easily due to a higher specific gravity. Oil sands
and natural bitumen, which don't flow at all, are also included in this
definition.
Production and refining of heavy crude costs more than
recovering and processing light crude. Production of heavy oil from oil sands
in Canada's Alberta province has an estimated break-even point of $35 a barrel,
Mirza noted. But Bahrain's heavy oil could be recovered at a cost of between $8
and $9 a barrel, he said.
Oil prices in recent weeks have fluctuated in a range of
$70 to $80 a barrel, which OPEC officials have declared an ideal range.
"Heavy oil will be a savior to the ever-increasing
demand for fossil fuels from the developing nations," Mirza was quoted as
saying.
The national oil companies of Bahrain, Kuwait and Saudi
Arabia were represented at the Bahrain conference, as well as multinational oil
giants Total and Chevron. Saudi Arabia plans to develop heavy crude deposits
and to refine the oil for domestic use, saving more of the light crude for
export.
(Courtesy: OilPrice.com)
