Journal of Petroleum Technology, Vol.54, No.3, 54-55, 2002
Reducing oilfield electrical power costs in a deregulated market
The cost of electricity is a large expense in oil and gas production. However, this cost tends to be overlooked relative to other production costs because of the regulated nature of the utility industry combined with its specialized and noncore technical requirements. In the deregulated electricity market, three key strategies are available to manage oilfield power costs effectively: real-time monitoring and control of the electrical load, infield generation of electricity, and negotiation of an integrated power-supply agreement.