Opportunities for Clean Energy in Natural Gas Well Operations: Preprint
The oil and gas industry is increasingly seeking operational improvements to reduce both costs and emissions. Currently, oil and gas directly and indirectly contributes forty-two percent of global greenhouse gas emissions, with over twenty percent of the industry’s emissions coming from operations. Given the opportunity for emissions reductions, this study describes techno-economic analysis evaluating opportunities for distributed energy generation and storage technologies – including solar photovoltaics (PV), distributed wind energy, and battery energy storage – to support companies’ energy cost savings targets, clean energy goals, and energy resiliency needs at hypothetical upstream well sites in the Marcellus Shale in Pennsylvania, both grid-connected and off-grid. These technologies reduce the site’s consumption of grid electricity and natural gas and thus help reduce Scope 1 and 2 emissions associated with electricity and natural gas. For each scenario, a cost of avoided emissions was calculated; these values can be compared to internal organizational value placed on emissions reductions, compared to other emissions reduction strategies such as energy efficiency, reducing flaring, and direct carbon capture and sequestration, and compared to existing (albeit limited) U.S. carbon markets such as California’s Low Carbon Fuel Standard. The study also explores the ability of these electric clean energy technologies to support site resiliency against utility outages.