Upstream Oil & Gas operates in harsh, remote and inhospitable environments and face many challenges when it comes to powering their operations, what is the solution?
The upstream Oil & Gas sector has a tough job to do in remote exploration sites, not only do they have to contend with extreme, inhospitable weather conditions, remote, hard to reach locations where often fuel supplies are hard to get, and of low quality, but also how to generate power in these conditions without constant breakdowns and power interruptions.
Very often entire spare generators need to be on site for the Oil & Gas industry, because exploration and extraction operations are so power sensitive.
“Getting electricity for Oil & Gas facilities during the exploration or upstream stage is a huge challenge due to the nature of its business, which is to ‘explore’ unchartered territories in remote areas to find Oil & Gas. These locations are isolated, without electricity infrastructure.
Therefore, a temporary power plant is the most ideal solution for upstream,” says Peter den Boogert, general manager, Altaaqa Global CAT Rental Power.
Oil & Gas companies have two options, they can buy a permanent power plant to install and maintain by themselves, or hire a company that can rent out a temporary power plant on a long term lease basis. It would be ideal for Oil & Gas to rent out interim power plants in harsh environments to avoid additional CAPEX, maintenance and downtime problems, according to Altaaqa Global.
Oil & Gas companies can pass on the burden of maintaining and operating a power plant and power generators to a third party, such as a rental company like Byrne Equipment Rental or Altaaqa Global, both of whom have experience in operating power plants in remote areas for the Oil & Gas vertical.
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Gas or diesel generators?
Gas turbines are not the only option for power generation in harsh environments. Although they are lighter for comparable energy output when compared to other technologies, have lower emissions, produce less noise and have useable exhaust heat, they are ultimately very expensive to run and maintain.
“Some people argue that gas turbines are expensive and heavily reliant on maintenance, whilst diesel are easily installed, maintained and regarded as cheaper to run – that is a historical thing than anything else because there is a sea-change going on at the moment with respect to how and what is best for the industry.
There is also with gas a historical challenge to transport and store LNG to fuel these engines on site, compared to diesel LNG is more expensive to transport and store and existing diesel supply infrastructures make it easier and less expensive to remain with diesel,” says Patrick Fallon, Chief Operating officer Byrne Equipment Rental.
Very often, because Oil & Gas companies operate in extreme heat and in areas of extreme cold too, having generators that are conditioned to operate in both is very important, according to Byrne.
“Diesel generators can be used in harsh environments, but very often with special generator design to overcome harsh weather conditions or harsh environments. A couple of examples would be additional filtration systems would be used on diesel generators, top intake instead of side intake which is typical in the industry.
It provides cooler air and gives higher sound attenuation on site. Oil & Gas industry specific canopies are often used – those are the covering that goes on the generator and that includes fire suppression systems for example or the use of auto-louver or different conditioning to operate in the Oil & Gas space,” explains Fallon.
One of the major reasons why gas power generation is even being considered in some remote locations is the lack of availability of clean diesel. Gas is also a cleaner burning fuel.
“In the Oil & Gas space, natural gas contains 40% less of the BTUs per gallon compared to diesel, engines. Burning natural gas also needs a longer displacement volume to deliver power output, a simple fact.
Gas generator sets need to be 20% to 30% larger than similarly rated diesel engines to deliver the instant demand and electric demand of starting pumps and rollers. Diesel generated power in tough and dangerous environments is a well used alternative especially for smaller operational activities,” states Byrne’s Fallon.
Diesel generators now have triple filtration systems to combat dirty diesel in rugged environments, with these filtration systems, and adjusted preventative maintenance schedules, for example instead of doing 250 hours or up to 500 hours preventative maintenance or servicing, the company may choose to do it every couple of hundred hours.
“In the Oil & Gas space, there is no eventuality to take chances with because their requirements are very exacting, they cannot mess around, they want to be able to have continuous use of the power that you supply,” states Fallon.
Top tips for efficient power generation in a rugged environment
• It is better to use temporary power plants during exploration, plant turnarounds, peak shaving and emergency.
• Hire the most experienced company in the Oil & Gas sector Use the best equipment that is built for the Oil & Gas industry. Caterpillar uses the most advanced technology specifically for the Oil & Gas industry.
• Avoid companies that could not provide local support in parts and service. Remember that Oil & Gas power facilities in remote areas and harsh locations should be serviced properly, or responded quickly.
• The company hired should be able to react quickly and provide solution during emergency.
Source: Altaaqa Global CAT Rental Power
