Post - Blog
By Chris Berrie , Caterpillar Oil & Gas Drilling & Completions Sales Manager
WNA 2024
The oil and gas industry continues to seek and adopt innovations that deliver dependable power while also advancing sustainability. For today’s oil and gas drilling companies and operators, drilling strategies centre on two key objectives: operational efficiency gains and lower greenhouse (GHG) emissions. Achieving those goals across different operating environments requires new approaches and industry collaborations.
Reducing diesel fuel consumption has a positive impact that helps achieve both goals and can be accomplished by embracing lower-carbon fuel options. Fuel flexibility and the ability to store and redeploy excess power can unlock new paths to GHG emission reduction and efficiency gains.
An evolution in drilling strategies
Operational efficiency has always been a primary factor in drilling operations to optimise costs. Now, companies strive to attain that imperative within the context of individualised climate-related goals, putting a keen focus on fuel consumption. Reducing the emissions footprint requires collaborative efforts between drillers, operators and technology developers in order to help achieve those goals.
The nature of oil and gas drilling requires instantaneous transient response capability, which gas power generation typically doesn’t have. Prior inefficiencies of running natural gas for this application, as opposed to diesel fuel, led to slower adoption. However, essential technological innovations have empowered drillers and operators to optimise their drilling strategies with options ranging from Dynamic Gas Blending™ engines to grid-tied drilling rigs and more – depending upon the requirements of a given drilling application.
Leveraging energy storage
Hybrid solutions that integrate a mix of fuel types – such as DGB engines, natural gas engines or a combination of both – can also pair with energy storage and smart technology to automate engine performance while reducing diesel use and emissions. That approach opens up interesting possibilities for powering rigs, which can further reduce operational costs. The ability to tap into and blend field gas, compressed natural gas (CNG) or liquid natural gas (LNG) with existing diesel assets, while also harnessing excess energy with leading-edge energy storage systems, provides compelling advantages that enable a rig to adapt to different regions and needs while lowering emissions.
An energy storage system adds another benefit: on-demand access to power. Advancements in high-density battery systems allow excess energy from a jobsite to be stored during low-demand periods so that it can be discharged as needed. In a hybrid system that combines an energy storage system and a gas genset, the transient response is even quicker than in conventional diesel-only rigs.
A hybrid solution that features an energy storage system also enables drillers and operators to utilise data-driven insights to optimise use of their assets and minimise maintenance to help lower their total cost of ownership (TCO) in their equipment.
The most exciting aspect of implementing such a system in the field is the impressive impact. Moving from diesel power to a field gas hybrid solution, like the one described above, can reduce fuel costs by 80 per cent while also reducing NOx and CO2 as well. These are changes that are transforming the oil and gas industry, and helping ensure that reliable and accessible energy can be produced while lowering emissions.
Energy storage that meets rigorous demands
A real-world example from a drilling site in Colorado demonstrates how much the industry has advanced and the kind of results that are possible. An operator sought to power its super-spec rig with field gas to lower emissions and operational costs. While the rig could run directly from the field gas, the operator was advised to remove the heavy hydrocarbons and return them back before being used for power generation to maximise the economics of the project.
The natural gas liquids (NGL) were removed from the field gas and returned to the operator. The treated gas was then fed to a gas-hybrid system to run the super-spec rig. In this instance, multiple Cat® G3512 gas generator sets were integrated with the Cat Hybrid Energy Storage Solution to create a microgrid power supply. lithium-ion batteries were fully integrated with the system to store and discharge power as needed in harmony to optimise the power supply. A microgrid master controller ensured the system worked together seamlessly to provide uninterrupted power, autonomously turning generators on and off as needed rather than relying on manual controls.
This comprehensive gas-hybrid solution significantly reduced regulated emissions, operating expenses, fuel costs and runtime. NOx emissions were reduced by approximately 80 per cent and CO2e was reduced up to 10 per cent. Empowering the operator to use CNG reduced fuel costs by more than 30 per cent, while using field gas reduced fuel costs by 85 per cent. Importantly, the system provided reliable transient response while decreasing engine runtime up to 30 per cent, which lowered maintenance needs.
The next generation of drilling
Oil and gas drillers and operators are now benefiting from energy storage solutions that have powered critical equipment in other sectors. A hybrid approach with energy storage at its core helps companies achieve multiple goals: lower GHG emissions, decreased costs, reduced fuel consumption and optimised TCO.
Leveraging energy storage with a lower-carbon fuel such as gas is a field-proven way to achieve operational efficiency, enhanced performance and lower emissions simultaneously. We are witnessing a new era of oil and gas drilling that is capable of supporting the industry’s decarbonisation aims in exciting ways.