Is your agency aiming to impress its oilfield operations?
That was one of many questions requested within the third quarter Dallas Fed Vitality Survey, the Federal Reserve Financial institution of Dallas web site confirmed. Executives from 111 oil and fuel companies answered the query, with 76 of those from exploration and manufacturing companies and 35 from oil and fuel help providers companies, the location highlighted.
Eighteen p.c of the respondents stated their operations are “already totally electrified”, six p.c answered “sure, fully”, 31 p.c answered “sure, partially”, and 45 p.c answered “no”, the location outlined.
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“Responses differed relying on the agency’s measurement and sort,” the location acknowledged.
“Twenty-eight p.c of the executives surveyed from small exploration and manufacturing (E&P) companies (crude oil manufacturing of fewer than 10,000 barrels per day (bpd) as of fourth quarter 2023) stated their oilfield operations are already totally electrified, in contrast with 9 p.c of executives from oil and fuel help providers companies and 6 p.c of enormous E&P companies (manufacturing of 10,000 bpd or extra),” it added.
“Service companies had been additionally barely extra probably than small and huge E&P companies to point they aren’t aiming to impress their oilfield operations,” it continued.
The third quarter Dallas Fed Vitality Survey additionally requested what the highest problem is to electrifying oilfield operations, the location highlighted. Executives from 76 oil and fuel companies answered this query, the location revealed.
“Corporations aiming to impress oilfield operations, or which have already accomplished so, had been requested whether or not their operations had been primarily centered on the Permian Basin or exterior the Permian Basin,” the location acknowledged.
“Amongst companies primarily centered on the Permian Basin, the highest chosen problem was ‘uncertainty about future entry to the grid’ (29 p.c), adopted by ‘different’ (25 p.c),” it added.
“Probably the most-cited purpose for ‘different’ was challenges with grid infrastructure. Amongst companies primarily centered exterior the Permian, the highest chosen problem was ‘too costly’ (30 p.c), adopted by ‘lead occasions for tools’ (26 p.c),” it continued.
“Amongst respondents not seeking to electrify, the most-cited response was ‘too costly’ (48 p.c), adopted by each ‘uncertainty about future grid stability’ and ‘different’, which had been every chosen by 17 p.c of respondents,” the location went on to state.
In an announcement despatched to Rigzone earlier this yr, Enverus Intelligence Analysis (EIR) stated emissions discount targets and cryptocurrency may double energy demand and threaten the grid in West Texas by 2040.
That assertion highlighted that the corporate launched a report that quantifies the potential electrification of oil and fuel property within the Permian Basin primarily based on operators’ emissions discount targets and its affect on grid demand, transmission flows, and the era required to serve this rising load.
In a launch despatched to Rigzone final month, Rystad Vitality revealed that, in line with new analysis by the corporate, “changing upstream oil and fuel manufacturing services to run on electrical energy powered by renewables or pure fuel that may in any other case be flared may lower greater than 80 p.c of related emissions”.
“Absolutely electrified rigs and different property on the Norwegian Continental Shelf emit 1.2 kilograms of carbon dioxide per barrel of oil equal (kg of CO2 per boe) produced, an 86 p.c drop from the 8.4 kg of CO2 per boe emitted by the identical property earlier than electrification,” it added.
Within the launch, Rystad famous that even a partial electrification will considerably lower emissions.
“Premium power basins (PEB) – a time period coined by Rystad Vitality to explain oil and fuel basins with ample hydrocarbon reserves and the potential to include environmentally pleasant practices – may maintain the important thing,” it added.
“We have now recognized 30 such basins worldwide, which collectively contribute greater than 80 p.c of the world’s oil and fuel this yr and can proceed to take action till 2050. If PEB property electrify and cut back emissions by 50 p.c, a complete of 5.5 gigatons of carbon dioxide (Gt of CO2) could be prevented by 2050,” it continued.
“Based mostly on the accepted business normal calculation, this CO2 discount would equate to about 0.025 levels Celsius of world warming prevented throughout the identical interval,” it went on to state.
The Dallas Fed conducts a quarterly survey of about 200 oil and fuel companies positioned or headquartered within the Eleventh District – Texas, southern New Mexico, and northern Louisiana – which function regionally, nationally, or internationally, the Dallas Fed states on its web site.
The knowledge collected is a beneficial element of financial evaluation and serves as enter for Federal Open Market Committee financial coverage deliberations, in line with the location.
To contact the creator, electronic mail andreas.exarheas@rigzone.com
