Offshore Technology Reports – Next Generation AC & DC UPS Solutions – Offshore Oil & Gas Engineering

SPECIAL REPORT

AC and DC UPS Solutions for Offshore Oil and Gas Engineering Applications Creating the New Wave in UPS Solutions for Offshore Oil & Gas: Design, Deliver, and Digitize Powering the Future Turning on the Power Developing Power for the Offshore Market Secure Power: The Future for UPS Power on Oil Rigs

Published by Global Business Media

Power that weathers anything.

So your business can, too.

Uninterruptible Power Supply Schneider Electric has specialists working in Oil and Gas industries and their combine know-how is applied to provide comprehensive solutions offshore and onshore.

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SPECIAL REPORT

AC and DC UPS Solutions for Offshore Oil and Gas Engineering Applications Creating the New Wave in UPS Solutions for Offshore Oil & Gas: Design, Deliver, and Digitize

AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

Contents

Powering the Future Turning on the Power Developing Power for the Offshore Market Secure Power: The Future for UPS Power on Oil Rigs

Foreword 2 Tom Cropper, Editor

Creating the New Wave in UPS Solutions for 3 Offshore Oil & Gas: Design, Deliver, and Digitize Philippe Carle, Schneider Electric, Industrial Solutions Segment Director for Oil & Gas and Utilities Lionel Ardid, Schneider Electric, Industrial Solutions Sales Enablement Manager Published by Global Business Media

Published by Global Business Media

Introduction What You Get is What You Need

Global Business Media Limited 62 The Street Ashtead Surrey KT21 1AT United Kingdom

Going Digital to Ensure Reliability

Switchboard: +44 (0)1737 850 939 Fax: +44 (0)1737 851 952 Email: info@globalbusinessmedia.org Website: www.globalbusinessmedia.org

Powering the Future

Publisher Kevin Bell

Quality and Total Cost of Ownership

Tom Cropper, Editor

Safety Concerns Power Issues

Editor Tom Cropper

Turning on the Power

Business Development Director Marie-Anne Brooks

Jo Roth, Staff Writer

Senior Project Manager Steve Banks

How Power is Supplied?

Advertising Executives Michael McCarthy Abigail Coombes

Choosing your Provider

Production Manager Paul Davies For further information visit: www.globalbusinessmedia.org

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8

Varied Adoption

Developing Power for the Offshore Market

10

James Butler, Staff Writer

Cross Development Saving Space, Saving Money

The opinions and views expressed in the editorial content in this publication are those of the authors alone and do not necessarily represent the views of any organization with which they may be associated.

Material in advertisements and promotional features may be considered to represent the views of the advertisers and promoters. The views and opinions expressed in this publication do not necessarily express the views of the Publishers or the Editor. While every care has been taken in the preparation of this publication, neither the Publishers nor the Editor are responsible for such opinions and views or for any inaccuracies in the articles.

Secure Power: The Future for UPS Power on Oil Rigs

12

Tom Cropper, Editor

Key Developments for the Future Greener More Efficient Systems

References 14

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NEXT GENERATION AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

Foreword

A

S THE offshore market becomes more aggressive in its search for oil, its power requirements are also increasing. From hundreds of megawatts, platforms are now consuming thousands and could soon enter gigawatt territory. Providing all that in a safe, zero-interruption system, without breaking the bank and the planet is a major challenge.

phase – one in which oil is becoming more difficult

Step forward the data management industry.

transition to AC / DC UPS systems, then James Butler

Advances in uninterrupted power systems (UPS)

offers a guide to the best implementation of a new

have achieved a greater level of reliability and energy

UPS system.

to extract and, in many cases, less profitable. With power representing a major cost, any developments which can reduce the total cost of ownership will be crucial to the future.

Jo Roth will then look at the development of power solutions for the offshore market and, in particular, the

efficiency than ever before. These advances are now

Finally, we’ll look at the future of power in the

being fitted together into a package strong enough

offshore industry. Ideas such as renewables, ocean

to withstand the uniquely hostile environment of an

going grids and shore-based power supplies have all

offshore platform.

been suggested as a way of reducing costs and

In the first article in this Special Report, Phillipe Carle

carbon footprints.

and Lionel Ardid of Schneider Electric talk about how

The future, then, is an interesting place, but

their company is approaching the UPS market. They

understanding how the market adapts to new

show how market demands are pushing developers

technology and which innovations will prove viable

towards smaller, more compact units which have the

is key to its long term viability.

durability to withstand the heaviest industrial use.

We’ll then spend some time looking at the nature of those demands. The offshore market is in a crucial

Tom Cropper Editor

Tom Cropper has produced articles and reports on various aspects of global business over the past 15 years. He has also worked as a copywriter for some of the largest corporations in the world, including ING, KPMG and the World Wildlife Fund.

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AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

Creating the New Wave in UPS Solutions for Offshore Oil & Gas: Design, Deliver, and Digitize Philippe Carle,Schneider Electric, Industrial Solutions Segment Director for Oil & Gas and Utilities Lionel Ardid, Schneider Electric, Industrial Solutions Sales Enablement Manager

Introduction The Oil & Gas industry is today facing major challenges, such as dealing with declining oil prices, applying stringent Health, Safety and Environment (HSE) regulations and exploiting increasingly hard-to-reach supply sources in extreme weather conditions and in particular managing remote offshore operations. O&G companies have thus responded to these multiple challenges by focusing on their key processes to ensure they implement robust and sustainable solutions while optimizing investments.

Secure power is more crucial than ever to ensure reliable, continuous and safe conditions for offshore O&G facilities. Problems that stem from the non-availability of electricity can cause interruptions in supply, serious damage to facilities and huge financial losses, as well as hazardous breaches in process security that put human lives at risk.

In this framework, Uninterrupted Power Supply (UPS) systems have become critical components

Zero downtime UPS, as its name implies, provides uninterrupted power supply. This is different from a simple back-up system where generators take over when the main power supply fails. UPS systems eliminate the brief break between power failure and auxiliary electrical supply ‘kicking in’. These short delays, in O&G facilities, data management centers or hospitals, for example, can seriously damage critical systems that require continuous power – a hard impact in term of people safety and loss of critical data and money. Schneider Electric has specialists working in all these industries and their combined know-how is applied to provide comprehensive solutions offshore. to ensure a continuous and reliable flow of electrical power on offshore facilities.

Schneider Electric has been delivering reliable customized UPS solutions for harsh environments for a quarter century, based on the Gutor range of products, and has been at the forefront of securing power supplies for the data management industry for just as long

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AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

What You Get is What You Need

Secure power is more crucial than ever to ensure reliable, continuous and safe conditions for offshore O&G facilities

“We have been closely monitoring the changes in the O&G business and have been working to establish collaborative working relations and partnerships with companies in the sector,” declares Philippe Carle. “Our policy is to provide the right technology for offshore facilities and to service and upgrade these applications over the lifespan of the installation as required.”

Concretely, this means that Schneider Electric experts establish an upstream analysis of customer needs and specifications and then propose the right solution by sizing, designing, and delivering UPS systems and auxiliary equipment according to customer specifications, including fully customer-specific requirements.

“The UPS solutions following this approach use a proven operating concept based on pre-designed building blocks,” continues Philippe Carle. “We have access to several product lines, ranging from standard adaptable products to customized systems specifically designed for harsh environments. We are therefore in a position to provide the right sizes and ratings for rectifiers, inverters and static switch modules according to customer requirements. We design the best configurations using a mix of standardized adaptable products and specifically designed customized solutions needed to withstand specific extreme conditions.

This means our customers benefit from a complete and cost-effective UPS solution, with no compromises on quality or performance.”

Going Digital to Ensure Reliability So, what are the major trends in the market today?

A Special Report on offshore activity published last year reaffirms “the importance of secure electrical power to all onshore and offshore oil and gas operations (and) why proven technology with a long-term reliability record is still the preferred solution”.

In this same Special Report, O&G expert Francis Slade writes: “Like all processes today, oil and gas production relies heavily on digital technologies and systems to ensure its optimum effectiveness and to record and analyze data that will not only improve the production process but also ensure well supported reports to the regulatory authorities. But, to be at its most effective, (…) industries that involve harsh conditions such as oil & gas and mining are increasingly using digitized equipment that needs reliable power, making the need for industrial UPS stronger than ever.”

To meet these multiple requirements – proven technology with a long-term reliability record and expertise in digital management – O&G

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companies are turning toward suppliers that can provide full turnkey solutions in both areas. Schneider Electric has been delivering reliable customized UPS solutions for harsh environments for a quarter century, based on the Gutor range of products, and has been at the forefront of securing power supplies for the data management industry for just as long. This double expertise allows Schneider Electric to provide complete best-in-class systems that are well suited to the new digital environment in the O&G industry.

It is important to emphasize that, just as the O&G industry has set the standards for protection of facilities in harsh environments, the digital and data management industries have established the norms for critical uninterrupted electrical supply. “We can never overstate the degree to which continuity in power supply is essential in the world of data management,” states Philippe Carle. “Our experience in the IT world is a huge advantage when working on protecting digital technologies in harsh environments because our goal is zero power failures no matter what the context.”

UPS systems protect a very wide range of equipment, from core process operating systems to safety and security equipment, via control rooms. These various systems also require uninterrupted protection for power levels from 1 to 1000 kVA.

Transformer less technology The major trends in many applications today are to use transformer less UPSs. This technology offers users key advantages: • Smaller footprint: less space required with no transformer • Less weight: weight reduction by eliminating the transformer • Higher efficiency: elimination of transformer losses • Voltage regulation by signal modulation for better matching with the load. The electronics act directly on the output voltage for faster and more precise voltage regulation.

• Lower THDI

AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

Quality and Total Cost of Ownership So how do these principles apply in the field?

Are new-generation UPS systems limited to new facilities or can existing setups also benefit from these new technologies? “In this demanding and highly-competitive environment, customers are looking to optimize their operational architecture for all their assets, including retrofitting legacy equipment,” explains Lionel Ardid “Cost pressure has generated a new emphasis on process control. This means that buyers and engineers are working together to achieve the best Total Cost of Ownership (TCO) in the long run.”

To ensure the electrical system power supply chain over time, it is essential to build a robust infrastructure in the offshore facility, while also taking into account a wide scope of endogenous issues such as upstream supply, types and levels of critical loads, maintenance planning and execution, availability of spare parts, criteria for midlife upgrades to keep up with

technological developments (e.g. digitalization) and evolving regulations.

In this quest for TCO, quality is an essential issue, which is why all Schneider Electric marine products are certified by DNV. “Quality in the entire electrical distribution chain is the best way to avoid power outage,” explains Philippe Carle. “Our customers know that they can count on us to supply them with the best technology and services for their complete installation, with our UPS as a key component in the system. Schneider Electric is a recognized international manufacturer and solutions provider for the full electrical distribution system. We can call upon experts at each stage of planning, development, installation and management and we can design, develop and deliver the full range of products, from offthe-shelf adaptable units to custom-designed equipment built for specific extreme conditions.

Our goal is always 100% performance and zero interruption.”

UPS systems protect a very wide range of equipment, from core process operating systems to safety and security equipment, via control rooms

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AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

Powering the Future Tom Cropper, Editor Delivering a reliable uninterrupted power supply is crucial to both the safety and profitability of the offshore industry

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Total said it still believed they could make a positive financial return.

For that to happen, though, production rates need to be excellent and costs need to be kept to a minimum

EBRUARY 2016, and, in a long overdue fillip for the British offshore gas industry, a major new gas plant begins operations in the Shetlands. Developed by French company Total, this multi-billion-pound project promises to deliver gas for two million homes in the UK and tap the lucrative deep water reserves west of the Shetlands. It’s a project which perfectly illustrates both the opportunities and uncertainties which lie in the offshore oil and gas industry.

Total’s project is the largest construction development in the UK since the 2012 Olympics.

It cost more than £3.5bn and will process 500 metric tons of gas per day. It opens up a lucrative area which experts predict contains around a fifth of the UK’s remaining offshore oil1 and gas reserves and represents hope for an industry which has struggled in recent years.

However, like many other deep water projects, it faces a question – can it be profitable in the current climate?

Gas prices, as well as oil, have experienced a traumatic couple of years. Brent Crude currently stands at $34 per barrel, while gas prices came close to record lows2. Predictions of a recovery have consistently proved wide of the mark and, although there is some good news, with talk of an output freeze coming from OPEC, there are fresh fears of continued oversupply thanks to the re-entry of Iran into the oil market – as well as continued high production levels from US Shale.

The obvious question is whether deep water exploration remains viable, especially given recent poor exploration and production rates.

Speaking about the Shetland facility, Total said it still believed they could make a positive financial return. For that to happen, though, production rates need to be excellent and costs need to be kept to a minimum. The same is true of other deep water projects coming online around the world. These were planned and developed in a time of significantly higher oil prices. Much of

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the capital has already been invested and, while they can still make a return, they must operate in a much tighter environment than their parent companies ever envisaged.

Safety Concerns According to many, these facts are enough to imperil the industry. Speaking to Energy Desk, Robert Bea, head of the Deepwater Horizon Study Group, who testified at BP’s Deepwater Horizon trial, said the low price environment increased the risk of more oversights.

“Experience has demonstrated that ‘cost cutting’ can result in undesirable reductions in the protections that are needed to be ‘safe’,” he told the site. “In general, the companies do not have a valid and validated way to quantify ‘safe’… it is ‘up to the operator’ to determine what is ‘safe’. It is analogous to driving a car without a speedometer and being told and required to ‘drive safely’3.”

Bea was talking to Energy Desk at a time when the oil price stood at approximately $60. Since then, of course, oil prices have taken another steep dive losing a further 50% of value. If companies were concerned about cost cutting in 2015, it’s an even bigger issue in 2016!

Power Issues Both the price and safety concerns draw significantly on the way in which an oil and gas rig is powered. With so many systems on board a rig reliant on constant power supplies, the consequences of a power failure could be severe. Unfortunately for the industry, power outages are more common than it would like to admit. In December 2014, Marathon was forced to evacuate all non-essential personnel from the Brae Alpha platform in the North Sea4.

A year earlier, Statoil had been forced to close production from its Visund Platform after it experienced power outages5. Statoil also experienced a gas leak at its Oseberg field centre caused by a power outage6.

AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

These three examples highlight the safety and operational risks of a power outage, but what also concerns oil and gas companies is the cost of any down time. Even a simple outage can lead to the evacuation of personnel and the suspension of production for hours or days at a time. All this costs money. A day’s downtime can cost hundreds of thousands of dollars.

The true impact can be seen with SeaDrill’s 2012 earnings report in which its deep water fleet experienced 100 days of downtime over the course of three months. This, suggested a report, had been enough to rob the operator of $60 million in revenue and saw its profits miss projections7.

Maintaining power is, then, a key safety and commercial consideration. Just as it’s becoming more important, though, it is also becoming much more challenging. The offshore market increasingly relies on reserves in deep water and hard to reach areas. New rigs are being installed in fields previously thought unreachable.

Located in remote and hostile environments, maintaining a reliable energy supply is a constant challenge. Power supplies must be

robust enough to withstand all conditions. They must provide a reliable changeover facility for redundancy power supplies, and they must cost as little as possible to operate.

On top of all this, we must add a further factor – the environment. Deep water drilling takes place in increasingly fragile ecosystems. Diesel for generators is toxic and presents a contamination risk to the surrounding ocean. The priority for the offshore oil and gas industry is to develop cleaner burning energy which lowers its carbon footprint and reduces the risks to the environment.

It is no easy challenge, but the next generation of uninterrupted power supply systems (UPS), is coming to the market promising to address all these concerns. They deliver superior performance, greater energy efficiency and a higher environmental profile than their predecessors. They can be contained within a smaller footprint and a lighter overall package – crucial for the compact nature of offshore exploration. If chosen and implemented well, they can help oil companies power their offshore fleet more safely, and less expensively than it has ever managed before.

Maintaining power is, then, a key safety and commercial consideration. Just as it’s becoming more important, though, it is also becoming much more challenging

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AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

Turning on the Power Jo Roth, Staff Writer How UPS systems are becoming increasingly critical to operations in the offshore oil and gas sector

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Power is firstly generated as an alternating current before being converted to DC by an SCR unit – containing silicone-controlled rectifier semiconductors

VER SINCE oil rigs first set to the seas, providing them with power has been a continous headache. These enclosed and isolated environments need a constant and reliable supply of electricity to maintain safety and product. Now, as we move into a digital age in which technology governs more and more of offshore processes, that power supply is more important than ever before. This is why producers are upping their focus on the next range of UPS systems.

How Power is Supplied?

The mantra for today’s oil industry is: further, faster, deeper and cheaper. New wells are much deeper than the old – reaching 30,000ft and more. They are likely to be in more inhospitable environments, whether it’s the storm driven Gulf of Mexico, the heat of the Middle East or the freezing cold of the Arctic. Drilling techniques are becoming more advanced, turning to horizontal drilling, fracking and water flooding. The upshot of all this is that the power requirements of the offshore industry are climbing sharply. This will have implications in terms of power consumption, cost, reliability and carbon footprint.

Old fashioned wells were largely powered by conventional DC/DC generators. These use dedicated diesel-electric direct current generators which power the motors that in turn power the onrig equipment. Many are still in use for older and shallower wells where power output requirements are not quite as severe. The trouble is they are costly to run, inefficient, produce a high carbon footprint and are inadequate for the purposes of modern oil rigs.

Today, offshore installations are increasingly turning to AC/DC electrical rigs with SCR controls.

These rigs use multiple diesel electric generator sets running in parallel which can provide variable power outputs to power the equipment on board the rig as well as heating, lighting and air conditioning for the crew quarters. Power is firstly

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generated as an alternating current before being converted to DC by an SCR unit – containing silicone-controlled rectifier semiconductors. This allows precise control of the power flow, which means the rig receives exactly as much, or as little, power as it requires at any one time.

The advantage of this set up is that rigs can run a number of generator sets in parallel, allowing them to vary power output according to the needs of the rig. This can save fuel, reduce costs and help a facility to manage its carbon footprint more effectively. The system can also include redundancy, in that a failure in one component will not necessarily mean total breakdown of power.

Varied Adoption The increased power requirements of the offshore industry have created a lucrative market for UPS systems. Even so, although the technology is available, adoption is far from uniform across the spectrum. In other words, the future is here, but not everyone has it yet. There is work to be done for UPS providers to educate those parts of the industry which have been slower to adopt than others.

In particular, the drive is on to develop purpose made UPS systems designed to cope with the requirements of the offshore market. This means a leap forward from non-industrial, floor standing units to devices constructed with the challenging offshore environment in mind. This means a system which is tough enough to withstand high impact, is non-corrosive and can function in a wide range of temperatures – from extreme heat to cold. They must be rated to withstand explosions, and fire – a far more challenging environment than other industrial units are likely to undergo.

Maintenance must be as quick, simple and non-interruptive as possible. Downtime can cost millions, with every second scrutinized. Units with multiple modules will allow quick maintenance

AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

without shutting down the overall generator. Spare parts must be easy to source and the system must be able to run 24/7 for several years with minimal requirements for upkeep or repair.

Most of all, operators need to understand their usage requirements. Each drilling operation is different and presents its own set of challenges from power requirements to the logistics of sourcing repairs and environmental conditions.

Operators will need to look at a system and be satisfied that it will be capable of working in the practical environment. This can be difficult, as it’s not easy to replicate in full in the laboratory the type of conditions likely to be faced. A unit may be rated to certain conditions, but there is no guarantee it will be able to cope in the real world. Buyers should look at the type of testing conducted on products, as well as if they have a track record of success in the real world.

A key issue will be estimating power consumption. This will vary depending on the type of work being undertaken on board a rig.

Operators will need to estimate the maximum amount of power required at any one time and plan in an additional ten percent to allow for any contingencies. Power must be easily variable to ensure only the right amount of energy is used

at any one time. This reduces overall power consumption, which of course has an impact on the projects’ bottom line performance.

Choosing your Provider As well as focusing on the type of system provided, buyers can also benefit by looking at the provider itself. Those with experience and a consistent track record of working in the offshore market will be at a significant advantage compared to those who feature more generic operations. Buying from a single source provider for the entire system, meanwhile, can make it easier to procure spare parts and to bring in ongoing customer support. Because of the unique nature of every installation, an effective back and forth relationship between the user and seller will reap dividends.

The availability of technology is growing rapidly to meet the increased demands and expectations of the industry. It is enabling offshore manufacturers to secure higher power outputs while also reducing the strain on their wallets. As this market becomes more promising, the technology is evolving still further as developers tweak their systems to deliver more value to their customers.

As well as focusing on the type of system provided, buyers can also benefit by looking at the provider itself

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AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

Developing Power for the Offshore Market James Butler, Staff Writer Smaller, more powerful and more efficient – how UPS systems are developing for the modern age of oil and gas exploration

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Space is at a premium in the offshore market.

Industrial UPS solutions, by their nature, tend to feature a larger footprint than their commercial or semi-industrial counterparts

HE MODERN offshore oil exploration industry is a power-hungry beast. New technologies, more demanding drilling projects and more complex operations increase the power requirement. At the same time, a need to economize is pushing oil and gas operators towards more energy efficient and low cost options. In this article, we’ll look at some of the key developments which are shaping the evolution of the market.

The offshore market needs more power.

Demands are growing from a few hundred megawatts to a few thousand. As the power requirement heads up into the gigawatt range, the search is on for alternatives. A paper in 2015 identified several options8: Business as usual: Continuing with localized power generation. This allows each rig an independent power source, but involves heavy and expensive infrastructure, transportation and storage of fuels and the maintenance of equipment, all of which drives extra cost.

Power from the shore: Taking power from the shore is more efficient from an environmental and financial point of view than localized power generation. This works for facilities located close to the shore, but is far more difficult the further away a rig gets. Each rig will also need a contingency in the event that power from the shore is disrupted.

Renewables: Partially as a bid to cut costs and partially as a bid to improve its environmental profile, the industry is looking for renewable alternatives. One tech brief from a 2013 innovations competition shows the kind of solution being considered – a portable wind turbine located on board a nearby platform which travels with the rig9. This can reduce the reliance on diesel, but the report found that it is not suitable for total power generation.

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Centralized offshore power generation: An interlinking ocean network provides power for several rigs, all of which are linked to a central power supply. The supply can be on a floating island which connects to all rigs in the network.

All these options have their merits, but ensuring uninterrupted power supplies remains a challenge. As any look at the number of power outages occurring on offshore rigs can show, this problem is one which has not yet been fully addressed. The requirement is becoming even more urgent with the emergence of digital technologies. BP’s Oil Field of the Future program paints a picture of an interconnected digitally driven oil field, where information is transferred and analyzed into central processors, oil reserves can be mapped digitally, and automated alarm signals alert operators to potential problems. It is a sophisticated vision of the future, but one which is likely to increase the reliance on electricity and the need to maintain operations in all circumstances.

Cross Development Development is coming from other industries, particularly in the realm of cloud computing and data management. These services are attractive because they allow high levels of security and capacity that their own systems cannot manage, as well as the ability to access systems from multiple locations around the world. With this demand, though, comes an increased requirement for uninterrupted power supplies. These need to be capable of coping with fluctuating power demands and maintaining constant reliable supply under any circumstances.

The challenge is bringing this into a unit which is strong and durable enough to withstand the rigors of life in the offshore environment. In other words, while the world of data management has stolen a march forward in terms of UPS systems which

AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

provide smooth seamless switch over in the event of a power loss – with zero interruption in supply – the oil and gas industry is taking that and putting it into a solid shell capable of working offshore. For this, units are encased within a durable outer shell rated to be explosion proof and to provide resistance to chemicals and corrosive elements. Fans can be deployed to regulate temperature, allowing continued operation in extremely hot conditions such as those found in Africa or the Middle East.

Saving Space, Saving Money Space is at a premium in the offshore market.

Industrial UPS solutions, by their nature, tend to feature a larger footprint than their commercial or semi-industrial counterparts. The offshore industries are also requiring UPS systems for data center work, which in turn need to be much smaller.

The drive is on to produce a more compact product through measures such as transformerless systems. By eliminating the transformer, powerful systems can be installed which take up a fraction of the space. These can also offer higher energy efficiency by eliminating the loss of power at the transformer, to reduce running costs. Systems such as the Gutor line from Schneider Electronics use an optional transformerless configuration to bring down the footprint while still adhering to the strict requirements of an oil rig.

To drive down their carbon footprint and energy costs, offshore drilling companies are also looking

for cleaner running technologies. This enables offshore rigs to move beyond diesel generators.

They operate in much the same way as batteries, are more energy efficient and present less of a risk to the environment.

Although these technologies are pushing forward, adoption remains far from uniform.

While major giants such as BP, Shell and Exxon are moving ahead with their digital oil field of the future, other smaller operators remain with business as usual, relying on tried and tested processes.

As new products become available, there is also an issue of how they are adopted. Are they simply usable for new rig builds or can they be retrofitted into existing rigs? Developing ways in which new UPS systems can be integrated within an existing rig is a major challenge, but is a primary consideration for the health and prosperity of the industry.

The market is evolving and the requirements of oil and gas contractors are changing, often in contradictory ways. On the one hand they need more power, but they also want to reduce their carbon footprint and energy consumption. The move into more extreme environments means they need stronger and more durable products suitable for heavy industry, but they also need to save space and reduce the overall footprint. The rise of digital technology within the offshore oil and gas industry means the range of systems the industry needs is growing.

While major giants such as BP, Shell and Exxon are moving ahead with their digital oil field of the future, other smaller operators remain with business as usual, relying on tried and tested processes

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AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

Secure Power: The Future for UPS Power on Oil Rigs Tom Cropper, Editor Why secure and uninterrupted power will play a crucial role in facilitating the oilfield of the future

All of this relies on an electrical supply that goes much further than simply delivering backup power for key systems, but can enable full functionality 100% of the time

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HE OFFSHORE oil and gas industry is in an exciting, but challenging phase; exciting because it is able to do more and drill further than ever before. New technology is revolutionizing the process across the board resulting in better reporting, more efficient operation and increased productivity. All this means uninterrupted power will be even more important than ever before. Challenging because maintaining this power will also be that much more difficult, as oil exploration takes place in more hazardous environments. In this final article, we’ll look forward at the shape of the market and assess key developments which will be critical in enabling the industry to attain its future goals.

Key Developments for the Future 1. Making a profit will be more difficult: With global oil prices currently hovering in the region of $30 per barrel, the days of $100 per barrel seem 12 | WWW.OFFSHORETECHNOLOGYREPORTS.COM

like a distant age – one which seems unattainable.

Assessing the future direction of the market is fraught with difficulties. Bloomberg reported on speculators who were shrugging off concerns and were about to bet on a price rise. Even though stockpiles are currently at an 86 year high and analysts predict consistent supply surplus, they believe prices have reached their nadir 10. They find support through reports of a deal between Russia and Saudi Arabia to freeze oil output11. Against this, they must consider the impact on supply of a return to market by Iran, and continued sluggish global economic growth, all of which could see supply continue to outstrip demand for the some years to come.

As the industry casts its eye to the future, it must find a way to focus on its core processes, and to extract oil more efficiently. This makes a UPS power supply a crucial component of a successful financial strategy. The right system can maintain operation, and minimize the huge losses suffered from downtime.

2. Work will be tougher: At the same time, the environment in which these devices operate will be more challenging. Units must be able to withstand severe conditions, explosives environments, high impact, extreme temperatures and corrosive chemicals to maintain operation despite everything the elements can throw at them. Doing so requires highly sophisticated machinery packed within an extremely tough and durable shell.

3. Demand for electrical supply will be more urgent: BP calls it the Oil Field of the Future – a world in which digital technology plays an increasingly important role in the production of hydrocarbons. In January 2016, it announced a partnership with GE Oil and Gas to deliver a digital solution to limit unplanned downtime for offshore operations.

AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

Speaking about the project Dave Feineman, a senior advisor on digital technology for BP said: “As we move to a digital world in the oil and gas industry, we look to digital technologies to help us move to the next level of operational excellence. These digital technologies offer the opportunity to collaboratively develop industry-leading solutions to address some of the most significant challenges in field operations.”

The system will introduce new process surveillance tools and predictive analytics which enable superior monitoring of operations.

The result is a system which enables prompt identification of potential problems long before they become dangerous and can maximize the efficiency of production.

Across the production spectrum, processes are becoming more connected. Using ‘Internet of Things’ (IOT) technology, information can come from sensors positioned on equipment monitoring everything from flow rates, fluid composition and the condition of infrastructure.

All of this relies on an electrical supply that goes much further than simply delivering backup power for key systems, but can enable full functionality 100% of the time.

Greener More Efficient Systems Elsewhere in this Report, we’ve focused on moves to reduce the size of units, particularly through the removal of the transformer. Doing this enables manufacturers to deliver lighter, more efficient products. These in turn result in a markedly lower footprint and lower overall cost of ownership. By focusing on more streamlined generator technology and lightweight components such as stainless steel or aluminum, operators can make significant strides forward.

As the industry moves into the future, we can

expect these trends to continue. In much the same way as other technologies, the aim is to produce more from a smaller footprint.

The environmental credentials of power supplies are also coming under scrutiny.

For those fields in range, the industry is making moves towards onsite power. These reduce the need for onsite power generation through inefficient diesel generators or gas turbines, which require substantial amounts of diesel and other chemicals and which can present an environmental hazard to the environment.

Although this cannot entirely replace the need for UPS power supplies on board, they can reduce the impact on the surroundings.

In addition to this, increased power from renewable sources such as wind, solar or wave can reduce the reliance of oil rigs on diesel generators or gas turbines. As well as reducing a facility’s carbon footprint, these can also produce vital economic savings. In an uncertain climate in which companies continually operate on the edge of profitability, such savings will be of critical importance.

The end goal is certainly ambitious – to ensure zero power loss regardless of the situation.

Given those circumstances might include lightning strike, fire and impact damage, finding solutions which can achieve these aims will be no mean feat. Development is moving forward rapidly. New solutions are coming to market which are more energy efficient, lighter, more durable and smaller than those systems which came before them. By doing so, power is being provided in a manner which is safer, more environmentally sustainable and economic.

As oil exploration pushes forward into more demanding frontiers, technology is in the pipeline to help drilling companies withstand the worst that conditions can throw.

Increased power from renewable sources such as wind, solar or wave can reduce the reliance of oil rigs on diesel generators or gas turbines

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AC AND DC UPS SOLUTIONS FOR OFFSHORE OIL AND GAS ENGINEERING APPLICATIONS

References: 1

Total Turns on Gas from Shetland Laggan: http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-35516144

2

Saudis, Russia Agree Output Freeze:

http://www.euronews.com/business-newswires/3151323-brent-crude-pares-gains-after-qatar-says-agrees-output-freeze/ 3

Oil Price Drop Increases of Offshore Oil Drilling Disasters: http://energydesk.greenpeace.org/2015/03/23/risk-of-oil-drilling-disasters/

4

Marathon Evacs Offshore Workers After Power Loss: http://www.offshoreenergytoday.com/marathon-evacs-offshore-workers-after-power-loss/

5

Power Outage Shits Visund: http://www.offshoreenergytoday.com/power-outage-shuts-production-at-visund-platform/

6

Oserberg Power Outage Causes Gas Leak: http://www.offshoreenergytoday.com/oseberg-power-outage-causes-gas-leak-production-shut-down/

7

Downtime Costs Seadrill Millions: http://gcaptain.com/downtime-costs-seadrill-millions/

8

Latest Trends in Power Supply: https://www.onepetro.org/conference-paper/OTC-25876-MS

9

Renewable Power Generation System for Offshore Oil and Gas Rig: http://contest.techbriefs.com/2013/entries/sustainable-technologies/3591

10

Oil Speculators Shrug off Huge Stock Piles to Bet on Price Climb:

http://www.bloomberg.com/news/articles/2016-02-15/oil-speculators-shrug-off-huge-stockpiles-to-bet-on-price-climb 11

Saudi Arabia and Russia Agree to Freeze Oil Production:

http://www.independent.co.uk/news/world/middle-east/saudi-arabia-freeze-oil-production-price-a6876591.html

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