Sustainability: A Power Primer

A Power Primer: Influencing Greenhouse Gas Emissions Through Power Source Selection

As oilfield operators worldwide aim to reduce greenhouse gas (GHG) emissions while maintaining operational efficiency, power source selection is becoming a critical decision point. The choice between diesel, natural gas (pipeline or field gas), hydrogen, grid power or energy storage systems directly impacts both on-site GHG emissions and the overall GHG-emissions profile of oil and gas operations. Understanding how each potential power solution can impact a site’s carbon profile can help oilfield companies attain sustainability-related objectives while curbing operational costs.

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The Evolving Power Source Portfolio

Today's oilfield companies have more power options than ever before:

  • Diesel generators – A reliable, widely available and portable option with established infrastructure. However, oilfield companies face increasing pressure to reduce GHG emissions from diesel-only operations.
  • Displacement with natural gas – Partial displacement with natural gas can yield substantial economic benefits, as gas may cost less than diesel in certain regions. Many sites have pipeline natural gas available on site, and fewer on-site fuel deliveries may be required when using field gas.
  • Energy storage – Energy storage solutions enable load leveling, capture regenerative power during drilling operations and significantly reduce daily engine runtime hours with corresponding GHG emissions reductions. The primary challenges posed by this option include a higher initial capital investment and limitations in energy density that may require hybrid configurations with other power sources.
  • Hydrogen Engines and Fuel Cells – This alternative provides near zero-exhaust GHG emissions power generation with fast refueling capabilities. As infrastructure remains limited, hydrogen production and delivery costs are currently high and the actual lifecycle GHG emissions impact depends on the type of hydrogen utilized.
  • Grid connection – Grid connectivity, where available, can significantly reduce on-site GHG emissions though the actual impact depends on the regional electricity generation mix.

Drilling operations have highly variable power demands, from high-load rotary operations to lower-demand circulation periods. Selecting the optimal power source — or combination of sources — requires evaluating multiple factors specific to each operation. Fuel availability, logistics and operational requirements ultimately drive decision making.

Energy storage systems excel at managing power fluctuations, reducing both fuel consumption and GHG emissions during peak demand periods. Hybrid systems that combine natural gas generators with battery storage can balance reliability, flexibility and GHG emissions reduction across all operational phases. For instance, a leading E&P in the Williston Basin collaborated with Caterpillar Oil & Gas and its local Cat® dealer to customize a solution featuring a hybrid energy storage option combined with engines outfitted with Cat Dynamic Gas Blending™ (DGB) Gen 2 Kits. The engines ran on compressed natural gas and utilized the Smart Engine Management System (EMS).

Employing an energy storage system allowed the oilfield company to reduce the equipment needed on-site from four gensets to three while curbing daily engine hours by one-third1. The operation reduced diesel consumption by 76,736 gallons over a 60-day period. This decreased CO2e by 160,452 kg, lowering GHG emissions by 13% compared to diesel-only configurations. Utilizing energy storage also enabled faster startup times and reduced peak power loads, demonstrating the significant GHG emissions reductions and operational improvements achievable with proven integrated technology solutions.

The Path to Lower GHG Emissions

Driven by shifting requirements, stakeholder expectations and economic incentives, oilfield companies continue to seek new approaches to power operations. Technology continues to advance with improvements in engine efficiency, battery energy density and hydrogen infrastructure, making new power solutions increasingly practical and cost effective.

While these solutions may require higher initial capital investment, reduced fuel costs as well as lower maintenance requirements and potential carbon credits can provide attractive returns. Technological advances such as the DGB and energy storage system options are field proven to enhance operational flexibility and decrease GHG emissions.

Learn more at cat.com.

1 Caterpillar. Enerplus, True Drilling and Wyoming Machinery Company collaborate to advance sustainability. Cat.com. https://www.cat.com/en_US/by-industry/oil-and-gas/case-studies/enerplus-true-drilling-wyoming-machinery-hybrid-energy-storage-system.html

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