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Permian Producers Have A Power Problem
Oilprice.com ^ | 10-03-2018 | Para

Posted on 10/03/2018 9:07:41 AM PDT by bananaman22

Drillers in the fastest-growing oil region in the United States face infrastructure issues beyond limited pipeline takeaway capacity or water and frac sand supply.

Permian oil producers need a lot more electricity to power well production than they did just a few years ago. And the West Texas electricity grid—which wasn’t planned for so heavy a load—is straining to catch up with power demand.

Thanks to rising oil prices, oil production in the Permian has been surging. While drillers have flocked again to the hottest U.S. shale play, electricity infrastructure and transmission grids in West Texas need years to expand to keep reliable power supply on.

(Excerpt) Read more at oilprice.com ...


TOPICS: Business/Economy; Government
KEYWORDS: electricity; oil; permian; utilities

1 posted on 10/03/2018 9:07:41 AM PDT by bananaman22
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To: bananaman22

Are there generators that operate on any natural gas from these wells?

Or on crude oil?


2 posted on 10/03/2018 9:10:11 AM PDT by Larry Lucido
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To: Larry Lucido

Back in the day they used wellhead gas.


3 posted on 10/03/2018 9:11:52 AM PDT by rrrod (just an old guy with a gun in his pocket)
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To: Larry Lucido
looks like capitalists have solutions to this problem, e.g. GE TM 2500 gas turbine generator 31 MW
4 posted on 10/03/2018 9:29:07 AM PDT by AndyJackson
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To: rrrod; Larry Lucido

Regulations are killing the e-gen capabilities of producers. Specifically, gas that can be “marketed” MUST be marketed within 30 days of production, regardless of use. Loopholes exist, but that is the meat&potatoes of the reg.

Loss of STATE revenue thru flaring is the excuse. Emission regulations are also stifling. NGO’s deploy and watch flares around Midland/Odessa; file suit on day 30.


5 posted on 10/03/2018 9:43:47 AM PDT by Cletus.D.Yokel (Catastrophic, Anthropogenic Climate Alterations: The acronym explains the science.)
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To: AndyJackson

see my #5.

I just left Permian. Am Regulatory Compliance specialist.


6 posted on 10/03/2018 9:45:04 AM PDT by Cletus.D.Yokel (Catastrophic, Anthropogenic Climate Alterations: The acronym explains the science.)
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To: Cletus.D.Yokel

Thanks for the info.


7 posted on 10/03/2018 10:12:13 AM PDT by rrrod (just an old guy with a gun in his pocket)
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To: bananaman22
Can anyone explain to me why all of sudden oil prices are going up even though the supply is supposedly going gangbusters?

Did OPEC finally agree to limit supply? Is the world economy that much better that more energy is being consumed?

What gives?

8 posted on 10/03/2018 10:44:50 AM PDT by who_would_fardels_bear
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To: bananaman22

Get some solar panels /sarcasm


9 posted on 10/03/2018 10:46:58 AM PDT by AppyPappy (How many fingers am I holding up, Winston?)
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To: who_would_fardels_bear

OPEC tightened it up. They dropped prices trying to drive the US manufacturers out of business.


10 posted on 10/03/2018 10:47:35 AM PDT by AppyPappy (How many fingers am I holding up, Winston?)
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To: AppyPappy

Why the Saudis are our “friends” is beyond me.


11 posted on 10/03/2018 1:33:30 PM PDT by who_would_fardels_bear
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