Power System Automation Drives Costs Down at North American Well Sites

Forrest Marsh January, 2017

Bringing down the associated costs of Diesel Power Generation Systems: •  Power Automation •  Power on Demand

How can Power Generation be part of today’s discussion?

Evaluating Power Options

Utility Power

Diesel Power Automation

Diesel-Fired

Diesel Power on Demand

Gas-Fired LOW TOTAL POWERCOST

HIGH TOTAL POWER COST

LOW EMISSIONS

HIGH EMISSIONS

NG Power Automation

Tier 4 Diesel

Intermittent Remote Applications

Generators typically run 24/7, regardless of whether the operations are automated.

•  High diesel fuel usage and costs •  Excessive emissions •  Frequent outages due to service and maintenance •  More failures due to lengthy idle times •  Faster depreciation of gensets

How can Power Automation be achieved?

•  Hybrid Battery Control kit receives signals from PLC, tank level switch, or other digital switch

•  Allowing for start/stop synchronization for power systems

•  Effectively eliminating engine idling •  Batteries provide secondary power for control panels when

power generation systems are not running.

Quickly Visualized: Power Automation for Rod Pumps

•  ANIMATION PLAYS for Power Automation on Rod Pumps •  (~1 min)

•  Major producer in the Permian Basin •  5 single well pads with intermittent 40HP rod pumps, ~12 hrs/day •  Diesel generators were running or idling 24/7

–  Idle 50% of the time

•  H2S treatment was cost prohibitive for gas fired power generation in this scenario

•  Producer needed to maintain production while lowering LOE’s

Case Study: Power Automation for Rod Pumps

•  The Solution: –  Five (5) diesel power systems equipped with hybrid battery

kits were sized for the 5 well-pads –  Power systems were in operation only when the pump was

“ON” – engine idling was eliminated –  $13,000 per pump in fuel costs were saved over 6 months

•  $130,000 annualized savings for 5 pumps –  Emissions were reduced more than 50% –  Maximized uptime by minimizing service & maintenance

interruptions

Case Study: Power Automation for Rod Pumps

Case Study: Power Automation for Booster Pumps

•  Midstream company in the Permian Basin •  200hp booster pump at a transfer facility

–  Pump only runs 10% of the time •  Previous diesel generator was running 24/7

–  Engine idled 90% of the time •  Field gas was not available as a fuel source •  Producer needed to maintain production while lowering LOE’s

Case Study: Power Automation for Booster Pumps

•  The Solution: –  Power generation system for the remote operation was sized for

the application –  Power automation kit –  24/7 Aggreko Remote Monitoring (ARM) –  Power generation system was in operation only when the pump

was “ON” – engine idling was eliminated –  Eliminated 21 hours of idle time per day –  60% savings on diesel costs, $16,000 annualized –  60% improvement in emissions

So what is Power on Demand?

•  Using the same automation kits, the ability to intelligently start/stop multiple generators in any combination to meet fluctuations in load demand.

Case Study: Power on Demand: Remote Start/Stop

Major producer wanted the ability to remotely start/stop NGL pumps and generators located in WY from their control center in Tulsa, OK. •  The Solution

–  Power on Demand Package –  10 Tier 4 Generators (seven 200kW, three 300kW) –  Step up transformer from 480V to 4160V –  SCADA software interfaced PLC and power automation kit –  24/7 Live Remote Monitoring Services in New Iberia

•  The Value/Benefits –  Producer is able to remotely start/stop any combination of

generators to balance NGL pump load demand and save fuel.

Power on Demand on a smaller scale: Booster Stations

Dual 200kW Tier 4 generators operating in parallel

Power Automation Kit in Power on Demand mode

Video Case Study: Power Automation and Power on Demand

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Automated, intelligent power systems are the next step for progress towards fully automated oilfield operations.

Power System Automation Drives Down Costs for Upstream and Midstream O&G

1. Proven to reduce fuel costs by 30-63%

2. Emissions are reduced between 30-63%

3. Maximize uptime by eliminating failures associated with idling

Forrest Marsh Oil and Gas Manager e: Forrest.Marsh@aggreko.com p: 303.242.9041 w: www.us.aggreko.com

Thank you