Operators in the Permian basin and elsewhere increasingly are relying upon a hybrid generator that can eliminate the need for a third generator on land drilling rigs and can slash a company's cost for off-grid electric power, reportedly by more than half.
M&I Electric, a subsidiary of American Electric Technologies, signed a strategic partnership with FlexGen Power Systems in which M&I will sell, deploy, and service FlexGen's hybrid generator technology to oil and gas operators across US, Canada, Mexico, Asia, South America, and the Middle East.
FlexGen executives told UOGR at the Offshore Technology Conference in Houston that a backlog of orders from Permian basin operators exists for the FlexGen Solid State Generator. Apache Corp. is among oil and gas companies using the generator.
Ensign Energy Services Inc. of Calgary is a service company having experience with the hybrid generator.
"The FlexGen Solid State Generator is a game changer for the oil and gas industry," said Matt McEwan, drilling manager for Ensign Energy. He said the FlexGen generator is "helping our company increase reliability while also reducing costs and emissions."
FlexGen Chief Executive Officer Josh Prueher said 25 Permian basin rigs awaited the generators as of early May. Prueher also expected orders from operators in the Bakken and Marcellus.
Previous experience in developing power equipment for the military assisted FlexGen's efforts in providing a generator that can store energy for rigs, running much as the engine in a hybrid car. The generator harvests and stores excess power when it is not needed and then discharges the power when it is needed. Prueher said the system can optimize efficiency for artificial lift pumps.
The hybrid generators were introduced in oil and gas fields starting in September 2014, and clients reported immediate cost savings because the unit decreases the size and number of gensets and alternators required to support load demand.
Prueher said the power delivery system helps oil and gas customers reduce fuel consumption, maintenance, and emissions. For oil companies operating at remote drill sites, the generator enables portable power.
Field tests proved FlexGen generators reduce power fluctuations on rigs, which reduces drilling time through improved transient-block load response. The generator also virtually eliminates blackouts, Prueher said.
