Alternative power

For the oil and gas industry, power generators are a very important necessity. These generators provide key power sources within the sector, particularly out in the field, powering drilling and other exploration activity.

The procedure of deep earth and offshore drilling, pumping, and the actual delivery of the finished product are significant, and these are only a few of the many power-dependent tasks involved in the oil and gas sector.

Larger companies especially, rely heavily on power generators in order to maintain a steady, reliable business operation.

Additionally, diesel power generators provide backup power to these companies’ main facilities and operations. If there is an emergency or disaster and the main power is shut down, generators can assist with backup, allowing business to continue as usual. This can save a huge amount, both in terms of costs and down time.

However, the seemingly never-ending construction sites have generated a major increase in demand, leaving the oil and gas sector with a shortfall for such equipment.

The Jubaili Bros, is a supplier of diesel electric powered generators. The company’s equipment has typical power levels ranging from 10kVA up to 220kVA – making it suitable for a variety of applications.

The company works exclusively with three brands, JET – manufactured in Lebanon – FG and Wilson, both manufactured in the UK. It has leased and sold their generators on a number of different projects globally, as well as countries in the GCC, such as Saudi Arabia and Yemen.

Yet the company is finding its equipment and services are running short in comparison to what’s demanded of them.

“Construction in the GCC surpasses the utilities’ ability to keep up, creating high demand. And there are shortages of big generators in the market,” said Jad Jubaili, assistant manager, Jubaili Bros Middle East.

“The demand for generators in the Middle East is extremely strong, particularly in the oil and gas sector where power supply is essential … at this time keeping up with demand is our major problem,” he added.

The Jubaili Bros services were required during two major gas projects in the region. The first was the Asab Gas Gathering and Injection Project (1996) in Abu Dhabi and used 5x 500 kVA generators (with a synchronising system) running in parallel for a total output of 2500 kVA.

The second was the Qatar General Petroleum Company’s Ras Laffan gas project, where the Jubaili Bros supplied 3x 500 kVA generators (in parallel) for a total output of 1500 kVA in 1997 – the majority of its generators are distributed across numerous construction sites.

Availability shortages

Despite the rising demand for generators within the oil and gas sector, there is an obvious deficiency in how many can actually be supplied to fit the requirements of any one company.

While Dubai is one example, the city’s distribution challenge is not unique to the region. Countries in the Middle East consume almost 20% of the world’s export of portable generators. Saudi Arabia, Iraq and Kuwait are just a few of the many countries in the Middle East turning to generator power on oil and gas exploration and drilling sites.

According to Jubaili, although generators are assembled all over the world, manufacturing companies are finding that components, especially engines specifically designed for work in the oil and gas sector in this case, are running in short supply.

Offshore rigs

The offshore oil and gas sector is a big consumer of electricity, for everything from pumping gas, to the heating and lighting of floating accommodation for oil workers, and fewer environments place greater demands on man and machinery than an offshore oil rigs.

It is therefore a necessity to acquire heavy-duty equipment that is reliable and can give facilities the power they need to run smoothly, without any interruption.

Platforms cannot run cable from land-based power plants if they are miles out to sea. However, offshore oil rigs still need electricity to run their machinery and provide a safe, comfortable environment for their workers.

Generators, most of which are fueled by diesel oil provide the electricity needed on the platforms. Some small, unmanned platforms, have solar panels to provide electricity, while a few rigs also use natural gas, sourced from neighbouring wells.

Energy sources

As oil and gas exploration and production have become progressively more complex, the generator industry has had to develop and adopt new technologies and systems to meet its power demands.

Power generators can be fueled by a number of different things including, gas, diesel, wind, hydraulics and steam.

Although most companies, including the Jubaili Bros (dependent on any given task) have a preference as to what a generator is fueled by, gas fueled generators in particular, have become a primary power source throughout the global oil and gas industry for offshore operations, as well as on-shore systems.

Back-up power generators fueled by diesel can sometimes be regarded as a very short term measure. This is because they are often forced to run on expensive distillate fuel, rather than gas that in many cases is simply flared off, rather than used.

The majority of construction projects on the other hand, have no preference as to what the required generator is fueled by, therefore enabling them to get hold of the necessary equipment at almost every opportunity.

Future

It is no surprise then, that the increase in construction sites, particularly in Dubai poses a strain on the availability of power generators for the oil and gas industry.

Industry analysts predict that the GCC is expected to require over 100 gigawatts of new power capacity over the next ten years in order to cater to the real estate projects that are to be announced, and those currently under construction.

Industry sources estimate the UAE’s power generation market to exceed US $200 million by the end of this year, of which 25% will come from the power rental business.

However, it is not just construction companies that swipe power generators at the first opportunity. According to Jad Jubaili the needs of third world countries are also a cause for shortages.

We cater to third world countries with no electricity as well as developing countries in the GCC. The population of these countries is growing fast and, in turn increases their per capita consumption of electricity. This then leads to a higher demand for generators in the oil and gas, and other industries.

While it is unlikely that third world countries and construction sites will lower their needs for power generators, with oil and gas exploration and production projects on the increase too, the likelihood of demand decreasing is slim.