Jon Hale, Apache Corp., & Doug Hoitenga & Bill Heard, Engine World Inc.
The single largest operating cost in the Permian Basin is electrical power due to the widespread use of waterflooding and/or high volume artificial lift. In most cases, operators with large power loads can receive preferential industrial power rates in order to lower their power costs. However, in cases where smaller power loads exist or preferential rates are not an option, the operator must investigate other options to lower its power bill. One option currently being tested is the use of natural gas-powered generators, which can generate the electrical power on-site that is necessary to run oilfield equipment using either residue or lease gas, and in turn lower your power costs significantly.