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Power System Automation Drives Down Costs of Production in the Permian Basin Forrest Marsh January, 2017

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Page 1: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

Power System Automation Drives

Down Costs of Production in the Permian Basin

Forrest Marsh

January, 2017

Page 2: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

How can Power Generation be part of

today’s discussion?

Bringing down the associated costs of Diesel Power

Generation Systems:

– Power Automation

– Power on Demand

Page 3: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

Evaluating Power Options

Utility Power

Diesel Power Automation

Diesel-Fired

Diesel Power on Demand

Gas-FiredLOW

TOTAL

POWER

COST

HIGH

TOTAL

POWER

COST

LOW

EMISSIONS

HIGH

EMISSIONS

NG Power Automation

Tier 4 Diesel

Page 4: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

Intermittent Remote Applications

Generators typically run 24/7, regardless of whether

the sites 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

Page 5: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

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.

Page 6: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

Quickly Visualized:

Power Automation for Rod Pumps

Page 7: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

• 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

• Needed to maintain production while lowering LOE’s

Case Study:

Power Automation for Rod Pumps

Page 8: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

• 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

Page 9: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

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

Page 10: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

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

Page 11: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

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.

Page 12: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

Case Study:

Power on Demand: Remote Start/Stop

Major producer wanted the ability to remotely start/stop NGL pumps

and generators 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.

Page 13: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

Power on Demand on a smaller scale:

Booster Stations

Dual 200kW Tier 4 generators

operating in parallelPower Automation Kit in

Power on Demand mode

Page 14: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

Video Case Study: Power Automation and

Power on Demand

Page 15: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

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Automated, intelligent power systems are the next step for

progress towards fully automated Permian operations.

Power System Automation Drives

Down Costs of Production in the Permian Basin

1. Proven to reduce fuel costs by 30-63% in Upstream and Midstream

2. Emissions are reduced between 30-63%

3. Maximize uptime by eliminating failures associated with idling

Page 16: Power System Automation Drives Down Costs of Production in ... · Power Automation for Booster Pumps • The Solution: –Power generation system for the remote operation was sized

Forrest MarshOil and Gas Manager

e: [email protected]

p: 303.242.9041

w: www.us.aggreko.com

Thank you