American Power Group Corp. (APG) has announced that a customer who has converted over 50 engines to APG’s dual-fuel solution, is currently operating drilling rigs for four end customers in the Bakken region of North Dakota.
Lyle Jensen, CEO, stated: "Over 70% of APG's dual-fuel stationary oil rig conversions in North America are operating on conditioned wellhead/flared gas in applications such as drilling, fracking, pumping, air compression and mobile lighting towers. The Bakken region of North Dakota is an area facing significant penalties and restrictions associated with the flaring of their wellhead gas.
Strict emission regulations
“We believe that federal, state, and local emission regulations will only get tougher as it relates to the amount of wellhead/flared gas that can be emitted into the environment. The economic and environmental benefits of converting this previously considered ‘waste’ gas into usable fuel is one of the most compelling environmental case studies of our time and we believe APG's dual-fuel technology will become a major consumer and sustainability solution for operators in this area."
Jensen added: "Based on data obtained thus far, our customers estimate a potential aggregate net monthly fuel savings of between US$40 000 and US$60 000 per drilling rig when utilising APG's dual-fuel solution and conditioned wellhead/flared gas. As the idling of rigs across the United States appears to be slowing down, drilling service companies as well as their E&P customers are now focusing their efforts on cost reduction and improving operating efficiencies of active drilling rigs which makes our Fueled By Flare™ dual fuel solution the perfect complement to these efforts.
Gas flaring problems
"While there are significant opportunities associated with the use of conditioned wellhead gas in stationary oil and gas drilling applications, we see a much larger addressable market in the thousands of heavy-duty trucks supporting the oil and gas exploration industry. The ability to use conditioned wellhead/flared gas to fuel these trucks can provide an operator with a significant competitive economic advantage as well as help address a significant pending problem for the E&P companies who have to eliminate the flaring of their wellhead gas."
APG’s dual-fuel technology has the flexibility to run on: diesel and LNG; diesel and CNG; diesel and pipeline or wellhead gas; and diesel and bio-methane.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/small-scale-lng/07052015/apg-solution-for-us-drilling-operators-705/