Fractal’s Jetshear™ technology is applied in the field where heavy oil or bitumen is blended with diluent for transportation through a pipeline. JetShear™ can dramatically reduce the amount of diluent required to transport the heavy oil to market.
Tests run in Fractal’s laboratory in Sherbrooke indicate the Jetshear™ can reduce the diluent required for meeting a pipeline’s viscosity spec for Canadian bitumen (~10° API) by up to 50 percent. For “lighter” heavy oils (~13° API), the reduction is about 35 percent based on laboratory testing. The company is currently validating these tests at its 300 barrel per day Pilot Facility in Alberta. Further validation work is expecting once the company places its 1,000 barrel per day Commercial Demonstration unit into action.
These test results indicate that a producer can significantly reduce the costs of purchasing diluent for transporting heavy oil to market.
The reduced diluent costs and tariff costs are partially offset by less blended volume sold. Fractal estimates the net benefit provided to the producer is about a $4 per barrel advantage over conventional blending. This estimate is based on historical oil prices and differentials.