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SHALE GAS UNITED STATES The discovery of giant oilfield reservoirs across the United States – referred to as “plays” – has significantly broadened Capstone’s presence in the oil and gas sector. Within the past year, Capstone has received a record number of oil and gas orders from large developers and producers with projects, due in large part to projects in the giant Eagle Ford shale play in South Texas, which experts estimate will rank sixth in size among all-time massive oil fields in the U.S., and the abundant Marcellus Shale play that spans West Virginia, Pennsylvania, and southern New York. In the past 18 months alone, Capstone sold nearly 150 microturbines ranging in size from 30kW – 1MW. The microturbines are installed at central processing facilities, metering stations, and compressor stations in the abundant shale plays. Oil and gas developers and producers want clean-and-green microturbines for prime power and CHP applications. The allure of Capstone microturbines is credited to the microturbines’ lasting reliability, their ability to operate off the grid, and their use of natural gas from the pipeline or wellhead as fuel. In fact, producers that can use utility power to operate their equipment are choosing Capstone microturbines instead. An even stronger driver for Capstone’s surge in oil and gas orders, however, is the microturbines’ low emission output. The U.S. Environmental Protection Agency’s (EPA) Clean Air Act specifies extremely strict emissions-level requirements that oil and gas producers must meet. Because of these stringent air-permitting regulations, developers and producers are turning to Capstone microturbines rather than internal combustion engines for an environmentally friendly onsite power source to ensure continued development of these abundant shale plays. Two C600 microturbines, operating in the Eagle Ford shale play in Texas, are part of a record number of Capstone microturbines installed at these giant oilfield reserves over the past 18 months.PDF Image | 2011 Annual Report Capstone Turbine Corporation
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