ON-SITE ELECTRIC GENERATION OPPORTUNITIES FOR OIL AND GAS PRODUCERS

Abstract

Deregulation of the electric industry is creating opportunities for oil and gas producers to take more control of their energy costs. On-site electric generation using small (<100 kW) turbine generators provides an alternative to utility connection. The new generation of recuperated mini-turbines have high electric efficiency, medium power density, and inherent high reliability due to multiple unit configurations. SCADA compatibility and minimal on-site service requirements minimize operation and maintenance costs. Existing field staff are sufficient for normal day-to-day operation. Small turbines can use flare gas or other low pressure, slightly “off-spec” gas sources as fuel. Other benefits include less downtime due to electric interruptions and reduction of greenhouse gas emissions when using flare gas as fuel. Waste heat produced is not usually economic to recover in existing facilities but should be considered in new installations.

There may be cases in which selling energy in the form of electricity rather than gas is a viable alternative. These situations are very case specific and will depend on the jurisdiction, off-site electric prices, and proximity to gas transmission infrastructure. Mini-turbine technology offers opportunities that did not exist previously but the opportunities will require creativity and effort to realize.