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Dualfuelsystemspowerup
in2013,DrillingRigs&Automation,Features,September/October Sep10,2013 2Comments

Marketfortechnologiestofueldrilling,well
stimulationoperationswithnaturalgas
expandingrapidly
ByKatherineScott,associateeditor
Technologythatseamlesslyswitchesbetween
dieselandnaturalgasmostcallitdualfuelis
finallyhittingitsstride.Makinganimpactinboth
drillingandfracturingoperations,dualfuel
systemshavebeenestimatedtosaveoperators
hundredsofthousandsofdollarsayearwhile
offeringthemachoiceinthefueltheyuse,
whetheritsLNG,CNG,fieldgasor,whennatural
gassupplyisntreadilyavailable,dieseltomany,
itsawinwin.

ThefirstHalliburtondualfuelQ10pumpwas
scheduledtoberuninColoradothissummer.
ThepumpispartofthecompanysFracofthe
Future,designedtoreducewellsitefootprint,
improveenvironmentalperformanceand
enhancereliability.

Itsabouttheoptionality.Themagicaboutthese
dualfuelkitsisthatyoucanrunitondiesel,butitcanrunonamixifitsavailableatthe
time,AlexanderRobart,aprincipalwithPacWestConsultingPartners,astrategyconsultancyand
marketintelligencefirm,said.
Simplystated,dualfuelinvolvestheabilitytorunenginesonacombinationofdieselandnaturalgas,
allowingcompaniestheflexibilitytochoosewhichfueltousebasedoncost,supplyandoperation.
Withintheoilandgasindustry,theuseofdualfuelsofarhasmostlybeenlimitedtoonshoreNorth
Americaindrillingrigandfracpumpapplications.PacWestestimatesthatmorethan100drillingrigsin
theregionnowhavedualfuelcapabilities.Weestimatethatnaturalgasforfrac/drillingoperationsis
resultingintheuseofabout8bcf/yearofnaturalgas.Mostofitisbeingconsumedfordrilling,James
Coan,consultantwithPacWestsaid.Inits2013AnnualEnergyOutlook,theUSEnergyInformation
AdministrationestimatedthatthetotalnaturalgasconsumptionintheUSin2011was24.4tcf.
Whiledrillingtechnologiesusingdualfuelhavebeenundercontinuousalbeitslowdevelopmentsince
thefirstapplicationin2006,thisyearitsbeenallaboutfracturingoperations,MrRobartsaid.
Describingitasbeinginanexperimentalstage,hesaid2013isthefirstyeartoreallycomeonthe
sceneinthecontextoffracturing.Butnoweveryoneistestingitoutinfracturingoperationsforthefirst
timetoseewhattheirexperiencesareandthenfigureoutwhattodowithitfromthere.
Comparedwithdrilling,fracturingoperationsrequiresignificantlymorepower,anditcanbeachallenge
ensuringaconsistentandqualitysupplyofnaturalgasforsuchapplications.Fracspreadsareanywhere
from16,000to24,000horsepowerorevenhigher,sothathorsepowerdemandrequiresasignificantly
largeramountofnaturalgassupply,KarlBlanchard,VPofHalliburtonsaid.Theresabigdifference
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inbeingabletomanageanddeliverthatmuch.
Thisgrowthindualfuelfracturingisdrivingstronggrowthoverallin
dualfueltechnologies,EdWolf,salesmanagerforIowa
basedAmericanPowerGroup,said.Hiscompanyhasdoubledthe
numberoffracturingunitstheyveequippedwithdualfuelsincelast
year.Thedrillingsectorhasbeenstrongforquiteafewyears,butjust
inthelastyearthefracturingindustryhasreallycomeonboard.Theres
somerumorsthatthefracturingindustryisgoingtobeusingmoredual
fuelthanthedrillingrigseventually.
Likemostnewtechnologiestryingtomakeameaningfulimpactinthe
oilfield,theuseofdualfueltechnologiescomesdowntocost.Right
nowwerejustnotintheboomingmarketwewereinbefore,sopeople
arethinking,howcanIreducecostsacrosstheboard?Itsthe
questionofwhoisgoingtodriveitbyspendingthemoneyandthen
howtheyaregoingtosharethosesavings,MrRobartsaid.Itsnot
goingtobeonegroupthatmakesthedecisionitneedstobemade
togethertopushthisforward.Therearealotofcomplexpieceshereto
buildthecapacityandcreatethedemand.

Caterpillarannouncedlast
yearacommitmenttogo
allinonnaturalgasand
manufacturemorenatural
gasequipmentand
engines.Partofthe
initiativeisitsdynamic
gasblending(DGB)kitfor
wellstimulation,including
fracturingapplications,
launchedatthe2013
OffshoreTechnology
Conference.Usingnatural
gastofuelfracturing
equipmenthastakenoff
rapidlythisyear,driving
expansionintheoverall
dualfuelmarket.

Costpressureshaveincreasedoverthepastyearandhalf,hesaid,
particularlyingasplaysliketheMarcellus.Thegasplaysiswhere
dualfuelmakesthemostsensebecauseyouvegotreadilyavailable
gas,hesaid,addingthatdualfuelkitscanrangefrom$60,000to
$100,000,withanadditional$20,000requiredforinstallation.Ifthese
kitscanenablecostsavingsbeyondtheinitialinvestmentsandboost
projectmargins,thatmakesperfectsense.Typically,arigutilizesthreeenginesthateachrequiresits
ownconversionkit.

Anotherimportantfactorinthecostsavingequationisthetypeofnaturalgasthatcanbeusedinadual
fueloperation.Thelongrangegoalthatmostpeoplehaveistoworktowardbeingabletouse
conditionedfieldgas.Itsabundant.Itsrelativelycosteffective.Itsenvironmentallypositive,Mr
Blanchardsaid.
MrCoanagreed,notingthatsavingsofnearly2.5%to5%ofthetotalwellcostcouldbeachievedby
usingfieldgas,assumingasubstitutionrateof50%andthatdieselforfracturingoperationsaccounted
for5%to10%oftotalwellcosts.
Dualfueltechnology
Atthe2012NaturalGasforHighHorsepowerApplicationsSummit,held2628Septemberin
Houston,Caterpillarannounceditsintentionstoinvestheavilyinnaturalgasandtomanufacturemore
naturalgasfueledequipmentandengines.JoelFeucht,thecompanysdirectorofgasenginestrategyfor
energy&powersystems,statedatthesummit,Wehavedecidedtogoallinongas.Wearegoingto
investbecauseweseealongterm,globalopportunity.Largeenginesaregoinggas.Itsnotdebatable
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itsourconclusion.
Twocomponentsofthecompanysallgasinitiativeareits
DynamicGasBlending(DGB)kits,onefordrillingthatwas
launchedinMay2012andoneforwellstimulation,including
fracturingapplications,launchedatthe2013Offshore
TechnologyConference.Bothoperateunderthegoalof
displacingasmuchdieselaspossiblewithnaturalgas,whichcan
includeblendswithethaneandpropane,whilemaintainingthe
enginespowerandtransientcapability,accordingtothe
company.

CaterpillarsfirstdrillingDGB
unitwasshippedtoRussiain
December2012.Fuelsavings
possiblewiththesystemdepend
onmultiplevariables,including
theapplication,thequalityofthe
gasandavailablevolume.

Mostdualfuelprojectssofarhaveinvolvedretrofitsofcurrent
equipmentbecauseofthelargedieselonlyenginepopulation
alreadyinthefieldtodayandtherelativeeaseoftheretrofitprocedure,RussGoss,aCaterpillarproject
managerintheGlobalPetroleumgroup,said.Thekitscanbeinstalledinthefieldinapproximatelythree
days.
Thefuelsavingsachievedwiththissystemdependsonanumberofvariables,includingtheapplication,
thequalityofthegas,thepressureandavailablevolume,MrGossadded.Butbyretrofittingexisting
generatorsetswiththistechnology,atypicaldrillrigoperatorcansaveasmuchas$400,000inoneyear,
basedonDGBssubstitutioncapabilitiesonatypicalthreeenginedrillingrigwithenginesseeingaround
4,000hoursperyear.Itsalsobasedonaveragefuelcostsofaround$3.50/galdieseland$4/MMBTU
fieldgas,alongwithassuminggasavailability70%ofthetime.
CaterpillarcurrentlyhasmultipledrillingrigsandfracspreadsoperatingintheUS,Canadainthe
Piceancebasin,Marcellus,Barnett,andHaynesvilleandisoperatingkitsinproductionapplicationsin
Russia.
Onthefracside,requirementsaredifferentbecausefracenginesmustrunatvariablespeeds,asopposed
toaconstantspeedfordrilling,ScottRoberts,Caterpillarwellserviceproductmarketingmanagerfor
themarineandpetroleumpowerdivision,said.TheDGBkitforfracturing,whichiscertifiedtoTier2
emissions,hasamaximumsubstitutionrateofjustover60%at100%load.Oursystemcandetectthe
changesinthefuelqualityandadjustitselfwithoutsomeonehavingtogofixsettingsorrecalibrate
anything,headded.
Boththedrillingandwellstimulationkitscanrunoffavarietyofnaturalgasrangingfrom800Btuto
2,300Btupipelinequalitygasis1,200Btu,andfieldgasintheBakkenaverages1,500Btu,Todd
Krueckeberg,NorthAmericasales&servicemanagerforglobalpetroleumforCaterpillar,said.You
havetodistinguishbetweenpipelinequality,whichisalmostlikeLNGandCNG,andthenliterallywhat
comesoutofthewellhead.Therawgasatthewellheadiswhereyougetthemoneysavings.
Fieldimplementation
Althoughitmaybeoperatorswhoultimatelydrivetheadoptionofdualfueltechnologies,particularlyin
wellstimulationapplications,itsclearthatdrillingcontractorsalsohaveasignificantroletoplay.
Enginesonexistingrigscanberetrofittedwithdualfuelkits,andnewbuildrigscanbeequippedwith
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dualfuelenginesfromtheoutset.
Scandrill,whichinstalleditsfirstdualfuelretrofitinlate2012,is
runningfiveSCRrigswithdualfuelsystemsfourinthe
Carthage,PanolacountyareaandoneintheBryanCollege
Stationarea.Dualfuelsystemsareheretostay,PaulMosvold,
vicepresidentofScandrill,said.Wecontinuetolookatwaysof
offeringthemosteffectiveandefficientrigcombinationtoour
customers,andoneofthewaysofdoingthatisintegratingthe
dualfuelsysteminanynewbuildsinthefuture.Mostrigswith
dualfuelsystemsalsohaverigwalkingsystems,whichallow
themtostayonasinglelocationformonthsatatime.This
allowsforgreatereconomicsofscalewheninstallinggassupply
linestotherig.

ScandrillsScanEndeavoris
usingthisprototypegas
conditioningskidfromProGas
Services.Thecontractoris
runningfiveSCRrigswithdual
fuelsystemsfourinthe
MarcellusandoneintheEagle
Ford.

ScandrillandAnadarkoagreedtoparticipateina2011field
testingprogramforCaterpillarsdrillingDGBkit.WehaveoperatedtwoCaterpillarDGBsystems
successfullyonourScanEndeavorrigandrecentlyinstalledthesystemonthethirdrigengine.Wehave
alsochosentoinstallfourAmericanPowerGroup(APG)systemsonfouradditionalrigs.Allare
operatingonfieldgas,andMrMosvoldsaidhiscompanyhasseensubstitutionratesinthemid60%
rangewithCaterpillarssystemandmid40%ontheAPGsystem.
Intheareasweoperate,fieldgasorpipelinegashasbeeninmostcasesreadilyavailable,butearly
planningwhenbuildinglocationsandsourcingofgaswillhelpmakethedualfueltransitionasuccess
forbothoperatorandcontractor,hecontinued.
PrecisionDrillingalsosaysithasseenasteadyincreasein
operatorinterestindualfuelsystems,DarcyWhitten,the
companysmanagerofengines,said.Thecompanycurrentlyhas
fourdualfuelrigsintheUStwoeachwithNobleEnergyand
withSouthwesternEnergyandeightinCanadaworkingfor
EnCana.Withintypically10months,dependingonwhattype
offueltheyreusing,youcanseeyourrewardsstarttopayoff.I
knowalotofcontractorsarehopingthattheyllhave10to20
dualfuelrigsinthenextyearorso,MrWhittensaid.

PrecisionDrillingsRig828,
workinginColorado,isamong
fourdualfuelrigsthecompany
hasoperatingintheUS.An
additionaleightareworkingin
Canada.

Headdedthatoperatorshavebeenwillingtopayfortheretrofits
throughhigherrigrates.Thedayrateoftherigincreasesuntilthetotalcostofthesystemisrecovered,
thenthedayratereturnstotheoriginalamount,heexplainedofPrecisionsdualfuelrigs.
MrWhittenalsonotedthathehasseennoimpactonenginelifewithdualfuelsystemssofar.Werana
dualfuelsystemonarigfor10,000hoursandstrippedthetopend(oftheengine)offandcheckedfor
anysignsofwear,andtherewasabsolutelynothing.Thatenginehasnoideathatyoureputtingnatural
gasintoit.PrecisionDrillinginstalleditsfirstdualfuelsystemonRig520in2008forEnCanaand
continuestousethesamedualfuelkittoday,MrWhittensaid.

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Thecompanyisnowevengoingastepbeyonddualfuelbyretrofittingtwo
rigswith100%naturalgasWaukeshaengines.Therigsareworking
forAnteroResourcesintheWestVirginia/MarcellusShaleandOhio/Utica
Shalearea.Obviouslythatspartofhowthemarketisdriven,butasa
powersystemsmanager,itsbetterformetojustputthedualfuelsystem
on,andIcanuseitornotuseit.
Forcontractorswhoprefertoenterthedualfuelmarketwithbuiltin
technologyratherthanretrofits,ChinabasedHonghuaGroupanditsUS
subsidiaryHonghuaAmericaaredevelopinganextgenerationonshorerig
forshaledrillingthatwillcomeequippedwithdualfuelengines.A
prototypefortherigisunderconstructionatthecompanysHoustonyard
andscheduledforcompletioninlate2013orearly2014.Dualfuel
engines,ormorespecificallymixedfuelengines,havebeenmaturingin
theEuropeanandUnitedStatesmarketsforthepast15yearsandisonly
nowmorewidelyused,notonlyinapplicationsofpowerrigsbutalso
fracturingengines,ZhangMi,chairmanandpresidentofHonghua
Group,said.

AnAltronicdisplay
panelforthebifuelkit
onaPrecisionDrilling
rigconfirmsthesystem
isoperating.GSP1is
incominggaspressure,
MAP1isthemanifold
absolutepressure
(enginemanifold
pressure),andMAT1is
themanifoldabsolute
temperature(engine
manifoldtemperature).

InChina,too,heseesagrowingprevalenceindualfuel,particularlyforunconventionaloilandgas
exploration.ThetrendofdualfuelsystemsbeingadoptedthroughoutNorthAmericaandother
countriesisalreadyquitenoticeable,butinChinaafewcompanies,suchasPetroChinaXinjiang
Oilfield,havealsobegunpilotprograms.Futuredemandwillbequitelarge,especiallyinAmerica,as
companiesarebeginningtodevelopprocessestopurifytheunpurifiedgasthatisexpelledfromwells.
Betterprocessesforconditioningfieldgaswillexpanddualfuelapplicationsforthefuture,hesaid.
Dualfuelfracturing
Lookingbeyondthescopeofdrilling,servicecompanieshave
continuedtodevelopanumberofproductsimplementingdual
fueltechnologies.
Withtheincreasingactivityinshaleplays,Halliburtonhasseena
significantincreaseintheamountofequipmentatwellsites.Our
environmentalfootprint,businessfootprintandthehumancapital
atatypicallocationarethelargesttheyveeverbeen.We
recognizethatasanopportunitytomakeastepchangeinour
equipmentsuite,IvanBlanco,programmanagerat
HalliburtonsDuncanTechnologyCenter,said.

AnLNGsupplytruckistiedinto
therigsupplylineforaPrecision
Drillingdualfuelrig.

ThecompanyisdevelopingasuiteoftoolscalledFracoftheFuture,designedtoreducewellsite
footprint,improveenvironmentalperformanceandenhanceonsiteequipmentreliability.Componentsof
thesuiteincludetechnologiestoreducebacteriainfracturingfluids,recycleflowbackandproduced
waterandutilizesolarpowerforproppantstorage.TheresalsotheQ10,adualfuelfracturingpump
wherenaturalgasentersagastrainandisthenfiltratedandmeteredtosuboutdiesel.This2,000hp
unitrunningondieselalonecanburn100gallonsanhouratfullload.Wereabletosubstituteamaxof
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60%ofthatdieselwithnaturalgasatfullload,whetheritsCNG,LNGorconditionedfieldgas.
ThecompanyhasbeenworkingwithApacheandCaterpillarsinceJanuary2012todevelopdualfuel
technologiesforpumpingequipmentandjustcommercializeditinJanuaryofthisyearwith12pumpsat
24,000hp.
HalliburtonstartedthedualfuelpilotwithApacheinOctober2012intheGraniteWashandwasableto
runanentirefracspreadwith12Q10dualfuelpumpsbyJanuary,HalliburtonsVPMrBlanchardsaid.
Wesubstitutednorthof50%ofthefueldemandwithnaturalgas.Thisspreadisstillrunningandhas
completedover35jobsforApache.
WithinHalliburtonsownoperations,thecompanyalsoisswitchingtonaturalgaswhenpossible.In
Maythecompanydeployedapproximately100lightdutybifueltrucksacrossseveralUSfield
locations.Bifuelinthiscasemeansthevehiclerunsonnaturalgasuntilthetankrunsout,thenthe
enginesandcontrolsautomaticallyswitchtoareservetankofgasoline.
UnderthisUSpilotprogram,thebifueltruckswilleventuallybeassignedto15locationsacrossseven
statesTexas,Oklahoma,Colorado,California,Louisiana,UtahandPennsylvania.Weselectedthese
locationsbasedonexistingpublicCNGinfrastructure,sothehopeisthat,asthedemandgrows,the
infrastructurewillfollow.Oncewegathertheinformationfromthepilotprogram,welllookathowwe
canmakealargerscaleadoptionglobally,MrBlanchardsaid.
PioneerEnergyServicesisanothercompanythatistesting
CNGpoweredvehicleswiththreeChevrolet2500HD4X4
ExtendedCabsthathavebeenconvertedtorunonbothgasoline
andCNGusinganAutoGasAmericasystem.Thetruckstarts
withagasolineenginebutthenswitchesautomaticallytorunon
CNG.WhentheCNGrunsout,theengineswitchesbacktorun
ongasoline.CNGwasthefuelofchoiceforpoweringlight
dutyvehiclesatPioneerbecauseofitsreliabilityandgrowing
availabilityasatransportationfuel,DanielHindes,well
servicingdistrictmanagerforPioneer,said.Thecompanyis
convertingitsexistingpickupsfor$8,500to$10,000depending
ontheengineandCNGtanksize.

AtopviewofHonghua
Americasnewlydesigned
1,500hpfastmovinglandrig
withautomaticdrillfloor
equipment.Therig,whichis
scheduledforcompletionlate
thisyearorearlynextyear,will
comeequippedwithdualfuel
engines.

Headdedthatthedecisiontotestthenewtruckswasdriven
primarilybycostconsiderations.WehavepaidCNGpricesof
$1.08upto$2.24ofgasgallonequivalent.ThemileageisthesamewhenrunningonCNG,sothe
comparisonissimplemath.WhenCNGis$1.99pergasgallonequivalentandgasolineis$3.50per
gallon,wearesaving$1.51pergallon.WeexpecttorecouptheadditionalcostfortheCNGconversion
within24monthsdependingonhowmuchthedrivercanoperatethevehicleonCNG.
Althoughthecompanydoesntplantoconvertmoreexistingtrucksbeyondthethreetheyhavenow,it
isevaluatingCNGbifuelasanoptiononanyvehiclespurchasednew.Theeconomicsofconvertingan
existingpickuparehighlysensitivetotheageandmileageofthetruck.Withtodaysconversionprices,
youneedapickupwithlowmileagetojustifytheexpenseofconversionoverthelifeofthe
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pickup,DanielHindes,Pioneerswellservicingdistrictmanager,said.TheoptionwhenorderingCNG
throughthedealerfor2013is$11,000.
Oneofthethreetrucksisbeingdrivenbymanagementandsalesstaffforfrequenttripstoandfroma
PioneerofficeinBryan,Texas,andtheHoustonarea.Theothertwoarebeingusedindailyoperationsto
andfromwellsites.Wearerecordingmileageinformationandfiguringupthecostdifferencebetween
runningonCNGandrunningongasolineAswereplaceourexistingfleet,wewilldefinitelyconsider
CNGbifuelvehiclesforthelocationsthathaveCNGavailable,MrHindessaid.
HoustonhassixcommercialCNGfillingstationsaroundthecity,andothersarelocatedinConroe,
Bryan,KatyandBeaumont.Still,MrHindesacknowledgedthatCNGavailabilityremainslow,andthis
hassignificantlyimpactedtheproject.Ourtestshaveshowntheeconomicsoftheexpenseforthe
conversionarehighlysensitivetothepercentageofthetimethatyoucanrunthevehicleonCNGversus
gasoline.WeareshootingtorunourpickupsinBryanonCNG80%ofthetime.Ifwecanrunour
pickups80%ofthetimeonCNG,theeconomicsareveryattractive.
Pioneerisalsoresearchingoptionstoconvertwellservicingrigs
andpumpstorunonCNGandistestingthefuelblendingkits
forenginesonitsdrillingrigs.Thecompanyhasinstalledthe
CaterpillarDGBkitsontwoofitsdrillingrigsandisinthevery
earlystagesofuse.
HythaneCompany,analternativefuelcompanydealingwith
variousenginecombustiontechnologies,in2011commercially
HythaneCompanysOptiBlend
launchedtheOptiBlendretrofittechnologyfordieselgenerator
retrofittechnologyfordiesel
generatorsetscanachieve
sets.Thetechnologycanburnamixtureofupto70%naturalgas
between50%toapproximately
and30%dieselfuel,butJohnNadeau,thecompanysdirector
70%substitutionrates.
ofsales,marketing,&businessdevelopment,contendsthatits
allaboutperformance.Nobodywouldbeusingthistechnology
ifitwerentforitsperformanceIftheoperatorshadtogivesomethingupinordertogetthis,it
wouldntbenearlyasappealing.
MrNadeauexplainedthatthesysteminjectsnaturalgas,whetheritspipelinegas,vaporizedLNGor
wellheadgas,intotheairintakestreamoftheengine.Itgoesintothecombustionchamberandcreates
additionalcombustion,andtheOEMcontrolsystemreactsbyaddinglessdieseltothemixture.The
amountofgasinjectedisbasedonseveralengineoutputparameters,suchasenginevibration,exhaust
temperature,generatorfrequency,andgeneratorloadviaaPLCunit.Itsacontinuousfeedbackloopso
wereconstantlyadjustingtheamountofgasgoingintotheengine.
Anothersystemthatmonitorstheenginetoconstantlyadjusttheamountofnaturalgastofeedinisthe
TurbochargedNaturalGaselectricalcontrolunit(ECU)fromAGP.OurECUletsusdeterminehow
muchgassubstitutionweneedandwhentouseit,APGsalesmanagerMrWolfsaid.Weusea
variablethrottlebodytodeterminethegasamountsateachofthosedifferentloads,anditreactsin
millisecondsastheenginemovestheloadsbackandforth.
Dependingontheengineandoperation,MrWolfsaid,substitutionrateswithAPGskitrangefrom30%
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at10%loadto50%to60%at75%load.Henoted,however,that
companiesshouldaimforanoverallaveragesubstitutionratein
the50%to60%rangebecauserunningsubstitutionat70%or
abovecouldcauseheatproblemswiththeengines,andthis
couldreduceequipmentlongevity.Wefeelthesafewayisin
the50%to60%forsubstitutionforlongevityoftheengineand
actuallyanincreaseinitslongevitybecauseitburnscleaner.
LastsummerduringadrillingapplicationinOklahoma,adual
fuelrigwiththree3512Catengineswasusedtodrillahorizontal
well.Overthecourseofthe78dayrun,atotalof91,000gallons
ofdieseland102,000dieselgallonsequivalentofnaturalgas
wereused.Thedifferenceinthecostbetweendieselandnatural
gaswas$3agallon,soitsaved$306,000,MrWolfsaid.
Averagesubstitutionwasbetween50%and55%.

DavidKnapp,districtmanager
forFTSIinWilliamsport,Pa.,
inspectsoneofthecompanys
dualfuelpressurepumpingunits
intheMarcellusShalein
northeasternPennsylvania.FTSI
partneredwithCabotOil&Gas
thisyeartotestdualfuel
technologyonitspressure
pumpingequipment.

InMay,FTSInternational(FTSI)partneredwithCabotOil&
Gastofieldtestadualfueltechnologyonpressurepumpingequipmentforafracturingoperationin
northeasternPennsylvania.Theaimwastouseonlygasfromaproducinggaswell.CNGorLNGcould
beused,butthesedonotprovideasmuchopportunitytoimproveefficiencyandreducetrucktrafficto
thewellsiteaswithusingfieldgas,ShawnStroman,VPofengineeringforFTSI,said.Theunittestedat
theCabotsiteprovidedanapproximately63%substitutionrate,accordingtothecompany.
TheMarcellusisanespeciallygoodbasininwhichtotestdualfueltechnology,KevinKrebs,FTSI
seniorVPofmanufacturing,said,becausewellsproduceaverydrymethanegas,whichisvery
enginefriendlyanddoesntrequireadditionalrefiningtobeusedtopowerourpumps.Theonlystep
betweenthepipelinefromthewellandtheengineisagasprocessingunitthatreducesgaspressurefrom
thewellpipeline.Inotherpartsofthecountrywherethenaturalgasisnotasengineready,additional
processesmustbeputinplacetopreparethegasforuseintheengines.
InordertooperateusingnaturalgasduringthePennsylvaniafieldtest,
FTSIsmobilepressurepumpingunitatthesitewasretrofittedwith
CaterpillarsDGBkit.However,MrKrebsexpectsthatengine
manufacturerswillsoonbeginsellingenginesbuiltasduelfuelfromtheget
go.Themainadvantagetopurchasingadualfuelengine,asopposedto
convertinganexistingengine,istheeconomythatresultsfromtheengine
beingbuiltwithallthepartsrequiredfordualfuelalreadyinplace.Witha
conversionsituation,someexistingpartsmustbereplacedwithpartssuited
fordualfuel.
Specializinginnaturalgasdedicatedengines
LikePrecisionDrilling,othercompaniesarealsomovingbeyonddualfuel
towardentirelynaturalgasreliantproducts.NobleEnergy,forexample,
kickedoffapilotprogramin2011intheDJBasintocomparethebenefits
ofdieselversusnaturalgas.Theprogramgathered12monthsofoperating

FTSIemployeesPeter
BallardandChris
Hightowerworkon
thefieldtestofoneof
thecompanysdual
fuelpressure
pumpingunitsinthe

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dataonthreelandrigstwoLNGdedicatedrigsandonerunningsolelyon
diesel.Thepurposewastodemonstratetheoperationalandeconomic
viabilityofpoweringthemajorityofNoblesrigswithLNG,BryantDear,
drillingengineerDJBasinforNobleEnergy,saidatthe2013IADCDrilling
OnshoreConferenceinHoustonearlierthisyear.

MarcellusShale.
FTSIspressure
pumpingequipment
wasretrofittedwith
CaterpillarsDGBkit
forthetest.

AsofMay,NoblewasoperatingoneLNGdedicatedrigandfourdualfuel
rigs.EachofthedualfuelrigsisequippedwithaGTIAltronicbifuelkitsetuponthreeCaterpillar
engines,MrDearsaid.Itstooearlytotellwhatour(fuelsubstitution)ratesare,butwereworkingto
increasethoseastechnologygetsbetterandthesesystemsgetbetterOnethingwedoknowisyouve
gottodisplaceasmuchdieselaspossible(toachievemaximumcostsavings).
TosupportthisextrademandforLNG,whichNobledecidedwasthebestnaturalgasoptionduetoits
higherenergydensityandconsistentquality,theoperatorisevenbuildinganLNGplantinWeld
County,Colo.Thatsgoingtobringourpricemuchfurtherdown,SeanHowley,seniorbusiness
analystforNobleEnergy,said.NobleplanstobuildaportfolioofLNGdedicatedanddualfuelrigsand
isexpandingLNGapplicationstoitsfracfleetaswell.Atthetimeofhispresentation,MrHowleysaid
NoblehadonedualfuelfracenginethatwasrunningonLNGintheDJBasinandexpectedtostarta
secondinJune.Ifwedontneed(theLNG)onafracjob,wecanrollitovertooneofourrigs.When
wedontneeditontherig,wecanrollitovertoafracjob.Itprovidessomereallynicesynergiesfor
us.
AtEnsignEnergyServices,engineeringmanagerBrian
Murphysaidthecompanyhasseenanupswingininterestfrom
operatorsinusingnaturalgasasfuel,including100%natural
gasdedicatedrigs.Thecompanyfirstpartneredwith
operatorEnCanatouseanaturalgasdedicatedenginein2006in
WyomingsJonahfield.Thereducedemissionsfootprintallowed
thefieldtobedevelopedmorerapidly,hesaid.

EnsignEnergyServicesRig124
operatesontheJonahFieldin
Wyomingusingfieldgaswith
dedicatedsparkignitionlean
burnengines.

Today,outofEnsigns300+drillingrigs,17runsolelyon
naturalgasandthreearedualfuel.Themostrecentadditionwas
a100%naturalgasdedicatedrigthatheadedtoCaliforniafora
majoroperatorinlateAugust.Withadedicatednaturalgas
engine,webelievethatwecansaveinexcessof$1milliona
yearonfuel.Withdualfuel,youllsavearound$200,000to$300,000ayear.Ifthefieldgassupplyis
expectedtobeintermittent,dualfuelwouldmakesense.Otherwise,ifyoureoperatinginafieldthathas
theinfrastructureandthereliabilityofqualityfieldgas,thatsthefirstplacewhereyouwanttoapply
dedicatednaturalgasenginesitsthebiggestbangforthebuck,MrMurphysaid.
Intermsofperformance,headdedthathesnotseenmuchdifferencebetweenthetwotypesofengines.
Adieselengineoperatesoncompression.Itcompressesthefuel,squeezesit,causingthefueltoignite
andthenyougeneratepower,heexplained.Withnaturalgasengines,thereareleanburnandrichburn
versions,butinbothanelectricalsparkignitesthefuel.Richburnenginesaremorediesellikein
performance,hesaid,buttheyarealsomuchheavierthanleanburnenginesandrequireextraemission
controlfeatures.Aleanburnenginereferstoahigherairfuelratio,whereasarichburnhasabalanced
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airfuelratio.
InJuly,twoofGEsWaukeshanaturalgaspoweredenginesVHP
L5794GSIandVHPL7044GSIreceivedEPAcertificationfor
mobileapplicationinnonroaduse,AaronTrexler,powergeneration
productlinedirectorforGEsWaukeshagasengines,said.Withour
richburncombustiontechnology,drillrigoperatorscanpowertheir
siteonalmostanyfieldgas,pipelinegas,propanegas,orCNGand
LNG.TheemissionsarealreadyapprovedbytheEPA,soany
locationin49statestheseenginescanbemovedandoperated.

GEsrecentlyEPAmobile
certifiedVHPnaturalgas
engineallowsoperatorsto
movetheenginetoany
locationinthe49statesas
theemissionsarealready
approved.

Thetwoenginemodels,whichmeettheEPAnonroadmobileTier2
emissionsrequirements,produceupto95%lessemissionscompared
withadieselengineintermsofNOxandcarbonmonoxide,and
theresverylittleparticulatematter,hesaid.Akeydifferentiatingfeatureistheenginesabilitytorunon
fuelinthe950to1,650BTUrangeandacceptinglargeloadchangesfromtherigoperationwithout
interruptionstothepowersupply.Ithinkitsgoingtogettoapointwherethedrillersnotreallygoing
toknowadifferenceotherthantheyregoingtobesavingmoneyandhavinglessemissions.
Lookingtothefuture,MrTrexlersaidtherapidgrowthofLNGinfrastructureinNorthAmericais
changingthegameintermsofwidespreadLNGadoption.Eveninthelastsixmonths,theLNGbuild
outinfrastructureismovingataveryquickpacetomeetthechallengesofgettinggastositesthatmaybe
donthavemuchfieldgasormaybesupplyisalittleuncertainattimes,heexplained.Justtalkingto
someofthecontractorsandtheproducers,theyreabletowritecontractsthisyearforLNGsupplywhere
lastyearitwasntevenonthetable.
PacWestsMrCoanstatedthatfouroilandgas
companiesareinvestingintheexpansionofLNG
facilitiesinNorthAmericaforupstreamand
downstreamneeds.MostoftheLNGcurrently
consumedcomesfromexistingsmallscaleplantsthat
utilitiesbuiltlongagotostorenaturalgasfor
emergencysituations.Shellisplanningtobuildat
leasttwosmallscaleLNGfacilitiesinGeismar,La.,
andSarnia,Ontario,eachwithaproductioncapacity
of250,000gallons/year.Stabilisintendstobuildfive
facilities,eachcapableofproducing100,000to
250,000gallonsofLNGperday,andNobleEnergyisconstructingafacilityinKeota,Colo.,with
productioncapacityfor100,000gallonsofLNGperday.ConocoPhillipshasannouncedthatitisalso
planningafacilitybutadditionaldetailsarenotavailableyet.
PacWestsMrRobartaddedthattheresarangeofdifferentindustrieslikelocomotivesorwaste
managementthatareincreasinglyexperimentingwithnaturalgas.Idofirmlybelievethatthis
representsatipofthespearinitiativetoconvertovertonaturalgas.Theoilandgasindustryrepresentsa
reallymeaningfulearlystagesetofinvestmentstostartconvertingthingsover,andIthinktherewillbe
anoverflowforthisinvestmenttodrivenaturalgasdemandacrossotherrelatedsectors.
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