In North Dakota, they're finding smart ways to avoid stacking rigs!
A new (to ND) way to keep rigs running in tough times: cutting costs with natural gas.
One way to respond when oil prices dip is to reduce operating costs using a diesel-natural gas cocktail! While the process is hardly unknown in oilfields in Texas and elsewhere, rigs in and around Williston, ND, have recently started using a blend of Natural gas and diesel to power their rigs. A locally-based company, ECO AFS, is helping convert rigs to run on bifuel, combining diesel fuel with natural gas that was previously flared off.
One of the first companies in the region to adopt this innovative approach is Statoil. The Norwegian O&G giant has a substantial presence in the Bakken Basin and was looking for ways to bring down operating costs. ECO AFS showed Statoil how bifuel conversion could offer huge benefits; 55%+ reduction in diesel fuel consumption, reduced flaring and cutting down on the number of trucks traveling local roads that are being worn down by heavy traffic.
The initial installation used pipes to send natural gas from one of Statoil’s producing wells to power a nearby rig, saving 800 to 1,000 gallons of diesel each day.
ECO AFS regional manager Jeff Anderson told inforum.com that the process could save as much as $1,000,000 per year.
Because of very limited storage facilities, nearly half of North Dakota's natural gas is flared, and by using ECO AFS' technology, much of that gas can be put to good use, making the air cleaner, easing traffic and keeping workers on the payroll!