A study of the technique of life-cycle costing as applied to the appraisal of oilfield power supply systems

Abstract

In most oilfields, gas associated with the production of crude-oil was a source of free fuel. However, by about 1975, it became economically viable to collect and process this gas as a saleable product. This paper discusses a method based on the life-cycle costing technique (LCC) designed to assist in the appraisal of other available energy forms to provide the oilfield power needed. Typical oilfield activities are briefly discussed and the processes forming the individual production facility are identified in a suitable functional format. An LCC methodology is developed to consider the various types of power drives, equipment configuration and system layouts. Candidate primemovers were considered and the gas turbine (GT) and the electro motor (EM) are selected as being the most feasible alternatives. Results of a prime-mover selection study designed to provide power for a gas collection network system are presented to highlight the advantages of the technique. Procedures considered necessary to aid the application of LCC technique in the oil and gas industries are also recommended by a 4-step plan.