Electricity Cost Reductions in the Oil Field

Abstract

ABSTRACT Oil producers must reduce electrical costs in order to remain competitive. Established reservoirs are maturing, and new fields are becoming more remote. As a result, oil production is increasingly more expensive to obtain; however, higher operation and maintenance costs are not being supported by higher product prices. The challenge faced by today's oil producers is to reduce production costs while at the same time they are also being called upon to produce oil from maturing and remote fields. This paper outlines a successful electrical cost reduction program developed by Exxon Company, U.S.A. Electrical cost reduction is an obvious goal of any cost control program since it typically is the largest single operating cost component of a particular field. In large fields, even minor reductions can result in significant savings. Substantial savings can be obtained in the utility company costs. This paper explains why utilities charge the way they do, and it shows what to look for when evaluating electric bill reduction possibilities.