Senior Research Associate

Husky Energy Inc.

AND

Melanie Wyman, Engineer

Midstream Assets & New Ventures

Husky Energy Inc.

TOPIC

Electricity Deregulation in Alberta

Softening the Blow

Abstract:

The presenters will describe a combination of optimization and simulation models that can be used to reduce electricity costs for pumping heavy oil in pipelines, and for justifying the installation of over-sized pipes to reduce future electricity costs. The work was done in response to electricity deregulation in Alberta with the attendant spectre of large increases in power costs. The models exploit the possibility of shifting electrical load from high-priced hours to those where prices are lower. Since deregulation, electricity prices have not justified day-to-day use of the models as originally anticipated. However, the technique has also been used in conjunction with flow rate simulation models to evaluate the benefit of installing over-sized pipe in new expansions to reduce future electricity costs and provide more opportunity for load-shifting in future.

About the Speakers

Maurice Elliott was born and educated in England, where he obtained a Bachelor’s degree in applied mathematics, and a Master’s degree in Operational Research. In 1970, he emigrated to Toronto, where he spent ten years working on planning systems for Massey Ferguson. In 1980, he moved to Calgary to join Dome Petroleum. He and his group built a number of systems for financial planning and optimization, with benefits exceeding $10 million in some years. After the merger with Amoco Canada in 1988, it became obvious that the grass was greener outside, and he left Amoco in 1993 to operate his own O.R. consulting company, Decision Insight Systems Inc. He consulted for a number of companies, mostly in the oil patch between then and October 2003. In November 2003, Maurice joined Husky Energy Inc. as Senior Research Associate.

Melanie Wyman is an engineer from the University of Regina, where she earned her Bachelor in Applied Science in Environmental Systems Engineering. After graduating in 2001 and doing several work terms for Husky Energy, Melanie was hired by the Husky Midstream Assets & New Ventures department where she continues to work today.