Manitoba Oil & Gas 2015

Page 82

Utilizing Flare Gas to Generate On-Site Power with Microturbines Capstone C1000 microturbine.

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he continued growth of oil and gas production in the U.S. and Canada has caused some scrutiny around gas flaring policies and regulations. Associated gas, commonly known as flare gas, is a byproduct of the oil drilling process. Associated gas is a form of natural gas that is either released to the atmosphere or burnt off as a waste product. Many oil and gas producers do not see any other need for their flared gas, and as a result, more and more gas produced is being flared. This outlook can lead to environmental issues and unwanted PR attention for oil and gas companies, putting pressure on oil drillers to find a clean-and-green solution. The increasing pressure to eliminate flaring is forcing oil and gas producers to reduce their gas flares and consider alternative methods for processing. So what can the oil and gas companies do with this product that cannot be stored and is otherwise marked as waste? What some companies don’t know is that it can be easily harnessed and utilized for on-site power generation.

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Manitoba Oil & Gas Review 2015

Utilizing a low-emission microturbine power generator at oil and gas sites has sizeable benefits. However, with a lack of incentive funding from the U.S. government, many oil and gas companies continue to opt for the standard flare process. The reality is that companies are quite limited with their flaring allowances unless the well is connected to a natural gas pipeline. Additionally, many remote sites produce more gas than can be used locally, so any cost associated with gas-fueled power generation is typically a non-issue. The gas that would otherwise be flared is essentially free fuel that can be used for powering the entire site, offsetting on-site diesel use, providing cost savings and significantly reducing flares. Based in Los Angeles, California, Capstone Turbine designs and manufactures clean-and-green microturbines that can be used in all phases of oil and gas production, including upstream, midstream, and downstream in both onshore and offshore applications. Capstone microturbines can operate on associated gas with minimal

fuel pre-treatment and no exhaust after treatment. The scalability of Capstone microturbines is such that they provide solutions for all associated gas flow rates. With microturbine technology, oil and gas producers are able to significantly reduce their emissions and achieve a higher level of energy independence. There are incremental environmental and economic benefits to flare reduction. The low emissions from Capstone microturbines make for a more environmentfriendly carbon footprint and can eliminate regulation and permitting issues. In gas-by-wire applications, producers are able to use their gas to generate power to export or sell back to the grid. As associated flows diminish, Capstone units can be moved and allocated for other uses on-site. Capstone microturbines do not require power or pipeline infrastructure to operate and can be used wherever associated gas is present. With flare gas being so underutilized, the potential for production optimization is substantial for oil and gas producers worldwide. u


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Manitoba Oil & Gas 2015 by DEL Communications Inc. - Issuu