Sustainability: Overcoming Grid Limitation

Overcoming Grid Limitations with a Customized Microgrid Approach

Global climate-related objectives continue to reshape the operational landscape. Carbon capture technologies introduced in the 1970s have evolved to support GHG emissions reduction in oil and gas operations through recovery, storage and utilization methods. However, it remains challenging for gas compression operators to balance increasing energy demands with climate-related objectives.

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With this in mind, the Caterpillar Carbon Capture Solutions team tested a unique environmentally benign molecular (mole) sieve technique on an active gas compression site in Northwest Texas running a Cat® G3606 1,875 horsepower engine. The 1,000-hour pilot program confirmed the evolved approach achieves economical CO2 capture at a higher efficiency than other methods. The project also demonstrated that effective utilization of the engine's waste exhaust heat can increase carbon capture performance without harmful byproducts or carcinogens.

It was additionally noted that the system’s inherent modularity provides the flexibility to meet unique capacity and layout requirements for a wide range of greenfield and brownfield sites.

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Customization for Every Oilfield Application

Successful microgrid implementation requires understanding each wellsite's unique power profile across different operational phases: drilling typically requires 4 MW; completions surge to 25 MW; and production settles at 0.5 to 1 MW per well for long-term operations.

Due to these variations in power and site-specific needs, three distinct approaches are possible:

  • Off-grid microgrids serve remote locations across all major basins, where grid access is unavailable or cost-prohibitive. Modern gensets with integrated controls optimize fuel consumption and eliminate manual synchronization to provide reliable power.
  • Hybrid microgrids combine natural gas gensets with battery energy storage systems, delivering faster transient response than diesel-only configurations. Sites using natural gas with energy storage can reduce fuel costs up to 30% and CO2e emissions up to 11%. When utilizing field gas, those savings can increase dramatically and curb fuel costs up to 85% and CO2e emissions up to 7%, with NOx reductions reaching up to 80%[1].
  • Grid-connected microgrids supplement utility power with on-site power generation. Historically, this approach works particularly well for sites with steady, predictable load profiles that align with utility companies’ preferences for stable power delivery.

For sites with aggressive, high-transient loads that could destabilize grid connections, integrating Cat controls and experience enables drill rigs to blend on site generated power with grid power. These systems can buffer sudden load changes while the power management system coordinates between utility power and gensets, ensuring seamless operation without exceeding utility thresholds.

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Real-World Success in the Permian

A recent Permian Basin implementation demonstrated the power of deploying customized microgrids in the oil patch. The operator required 25 MW for completion operations but could only access 10 MW from the local utility grid. Rather than relying entirely on on-site generators, Caterpillar Oil & Gas created a grid-connected microgrid that harvested the available 10 MW of utility power and supplemented the remaining 15 MW with natural gas gensets.

As a result, the operator reduced on-site power generation by using just six gas-fueled gensets rather than 10: a reduction of 40%. A sophisticated power management system orchestrated multiple power sources, preventing site blackouts while maintaining protection thresholds required by the utility. This configuration helped deliver immediate fuel cost savings and GHG emissions reductions while supporting the aggressive power demands of the operation.

The Path Forward

Competition for grid power will intensify in the future, with U.S. data center demand expected to grow 10% annually through 2030, requiring an estimated 47,000 MW of additional generation capacity3. As the industry continues to electrify the oilfield, microgrids provide the flexibility to adapt to evolving power landscapes and industry requirements while keeping operations running efficiently and reliably.

A customized microgrid approach enables oilfield companies to fulfill operational and sustainability goals today, preventing delays caused by grid infrastructure delays. By combining utility power with on-site gensets and energy storage systems, GHG emissions and operating costs can be decreased while maintaining the 24/7 demands of modern oilfield operations.

1 Martinez, A. Dominguez. "A Permian Microgrid Case Study - Keys to Successful Implementations." Paper presented at the SPE Annual Technical Conference and Exhibition, New Orleans, Louisiana, USA, September 2024. doi: https://doi.org/10.2118/220763-MS

2 Martinez, A. Dominguez. "A Permian Microgrid Case Study - Keys to Successful Implementations." Paper presented at the SPE Annual Technical Conference and Exhibition, New Orleans, Louisiana, USA, September 2024. doi: https://doi.org/10.2118/220763-MS

3 Martinez, A. Dominguez. "A Permian Microgrid Case Study - Keys to Successful Implementations." Paper presented at the SPE Annual Technical Conference and Exhibition, New Orleans, Louisiana, USA, September 2024. doi: https://doi.org/10.2118/220763-MS

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