Your dedicated engines in the field need a reliable fuel supply. Your flare stacks have state regulators on your back. There are solutions, one of which is already hard at work in the Marcellus Shale: rigs powered by natural gas engines tied to a virtual network of fit-for-purpose fueling modules.
“If you’re able to show reliable fuel supply, and make it feel no different than diesel, then you’re able to adopt those dedicated natural gas engines, and as you adopt those dedicated natural gas engines, your paybacks become faster, your profitability goes up, you use more gas,” said John Westerheide, general manager of unconventional resources for GE Oil & Gas, at Hart Energy’s recent DUG Bakken and Niobrara conference in Denver. “It compounds on itself once again.”
The company’s two principal engine technologies are Waukesha rich-burn and Jenbacher lean-burn. Weatherford Enterra Inc. employs about 30 Waukesha engines in the Marcellus Shale on 10 Patterson-UTI rigs.
“Those rigs are running field gas, they’re not running (the GE Oil & Gas) Last Mile Fueling solution, which delivers CNG,” Westerheide said. “But those engines can take either Last Mile Fueling solution or field gas.”
GE’s approach was to collaborate with an oilfield partner, Norwegian energy giant Statoil, and develop an understanding of what it would take to fuel operations, drilling rigs and hydraulic fracturing crews. Then it joined with Ferus, a Calgary-based energy services company, to transfer its solutions from the laboratory to the field. The partnership has reduced flare stacks and turned a wasteful, harmful element into a beneficial fuel source through its virtual networks of mobile, deployable “CNG in a Box” and “LNG in a Box” modules and small-scale LNG plants.
“The exciting thing is, because we can land these (CNG in a Box) units in the field and get rid of flare stacks, you’re not talking about 100 miles you have to drive to fill up with CNG,” he said. “You’re talking about five miles, you’re right down the road. Additionally, as the rigs move around the basin, you can pick up those units, and you can move them with the demand. It creates a very flexible virtual network."
Recommended Reading
E&P Consolidation Ripples Through Energy Finance Providers
2024-11-27 - Panel: The pool of financial companies catering to oil and gas companies has shrunk along with the number of E&Ps.
Utica Oil E&P Infinity Natural Resources’ IPO Gains 7 More Bankers
2024-11-27 - Infinity Natural Resources’ IPO is expected to provide a first-look at the public market’s valuation of the Utica oil play.
New Fortress Makes Headway on $2.7B Debt Refinancing
2024-11-26 - New Fortress Energy Inc. anticipates raising approximately $325 million in gross proceeds through the refinancing.
Equinor Exercises Option for Three Havila Vessels
2024-11-26 - Equinor ASA uses the vessels to support its North Atlantic, North Sea platforms.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.