OILFIELD ELECTRICAL COSTS CAN BE REDUCED BUT OFTEN NOT BY TRADITIONAL METHODS THE HISTORY OF ELECTRICAL OPTIMIZATION AT SALT CREEK

As most of the energy companies struggle to remain competitive in the domestic market, one of the costs which seems to continue to climb is the cost for electricity. For some operations, these costs can represent as much as fifty percent of the operating costs. To continue to operate in the domestic market, it is imperative that energy companies explore all avenues for reducing this cost to a minimum level. Mobil Exploration and Producing U.S., has entered into a contract with Brazos Electric wherein Brazos Electric will purchase 40,000 kilowatts of Mobil's Salt Creek Field Unit electrical demand, for $25 per kilowatt, or $l,000,000per year for two years. This paper will discuss the details of this contract and cover the history of the electrical cost reduction methods used at Mobil's Salt Creek Field Unit which led to this agreement. These efforts have combined to reduce the total electrical costs from $0.06/KWH to today's price of $0.0365/KWH.