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Microturbines in the Oil Patch

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Microturbines in the Oil Patch ( microturbines-the-oil-patch )

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The savings a 30 kw microturbine can generate are about $28,000 per year, based on a $.11 per kw utility charge. The smallest unit, the 30 kw, can run two 15 HP well pumps, or a combination of a well pump and Reda pump. Larger microturbines, or series of smaller ones can handle larger oil patches. If you run your 15 HP well pump 24/7, then you can expect a utility charge of about $14,454 per year based on a rate of $.11 per kwh. Larger oil patch operations can expect a utility charge of between $.04 to $.09 per kwh depending on utility. In these situations, it is wise to commission a feasibility study to determine the cost savings and benefits, in relation to the power and demand charges. With a standard $3.5 mcf sales, and based on the 80/20 rule, your "delivered" gas is worth about $2.80 per mcf. If you run a microturbine with this gas, it will cost you about $7,630 in missed gas sales per year, however, your electrical savings will be $28,908 per year, for a net revenue of $21,278 per year. If you have a well which derives gas from coalseam methane or Devonian Shale, your potential tax credit on the smallest of turbines would be about $2,920 per year. On the larger microturbines, you can expect a gas consumption of 12,000 BTU per kilowatt produced. If you know what the BTU content of your gas is, then you can derive your fuel consumption. For example, the 250 kw microturbine will require about 3,000,000 BTU per hour, or about 3 mcf per hour based on 1,000 BTU/scf which results in a consumption of 72 mcf per day. If this unit were powering a few wells in a oil patch, you could expect a yearly savings of $240,900 and a tax credit of about $26,280 (coalseam methane or Devonian). These figures are based on electrical savings alone, and do not include any thermal (heat) benefits. Providing hot water well flooding may increase output which may be more difficult toquantifyintermsofdollarfigures. Anoptiontoutilizethehotairstreamfromthebackof the turbine can be also used in a desiccant operation, which may be used to pull water out of the gas if you sell your gas to a pipeline. And while those variables are not included here, it is something specific to your lease, which only you can determine its value or can be examined in a feasibility study. The bottom line for any grid connected well operation is that if you are able to sell your gas, then you need to have a utility charge of $.045 per kilowatt or higher to make the microturbine installation one which pays for itself. If you are currently flaring gas, or do not have a opportunity to sell the gas to a pipeline, then that figure drops to $.025 per kilowatt hour. Of course if you are flaring or venting gas, you’re wasting a valuable electrical generation resource which can make you money. In some areas, you may be prohibited from flaring or venting gas, in which case the microturbine may be a very attractive alternative, while generating revenue simultaneously. For those closed-in or low producing wells with gas, we have developed a program with Next Generation Utilities who will buy your gas at $1.5 mcf to convert to LNG/CNG. In these type projects, they employ the use of the microturbines to provide power for the compression facilities. Generally, where it is not feasible or cost prohibitive to connect to a pipeline, this is a very attractive option, even if your well has been shut down. To be considered for such an option, you need to know your daily gas and reserves (preferably surveyed from a four point bottom hole test, or similar survey).

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