document

Paper Number	68-192
Title	Economic Analysis of Oil-Field Electrification
Authors	Wade O. Lundstrom, Harold J. Matthew, Union Oil Co. of California
Source	Drilling and Production Practice, 1968
Copyright	1968. American Petroleum Institute
Language	English
Preview	ABSTRACT A model oil field consisting of 50 wells, each producing 50 BID at 5,000 ft, is used to demonstrate the economic advantages of oil-field electrification. Data on some 300 electrified wells were used to verify the conclusions. The model required 650 installed horsepower at a capital cost of $1 1 1,100 and showed a 27-percent return on investment. It was determined that gas engines cost 1.75 times as much to operate and maintain as do electric motors and that oil fields may be converted to electric power for $2,200 to $2,500 per well. INTRODUCTION One of the more difficult problems involved in the electrification of an oil field is to obtain an accurate estimate of costs and an acceptable return on investment without undue delay or detailed design. It is the purpose of this paper to give the design engineer or budget-minded superintendent concise and reasonably accurate data to rapidly estimate the cost and return on investment of an oil-field electrification project. Costs have been accumulated from five recent electrification projects involving nearly 300 wells ranging in depth from 500 to 11,000 ft and from jack-line operations to some of the largest pumping units available. Motor horsepowers have ranged from 3 to 75 on pumping units and larger prime movers on field production equipment. Data obtained from these electrification projects and costs published herein are of an average nature and should be used as such. These data are representative of most California oil fields. Averages obtained from past electrifications have been applied to a 50-well model oil field and payout has been calculated on this model. Some of the average costs used are cost per mile of three-phase primary and secondary power line, cost per well service hookup, cost per transformer setting, cost per motor (for model only), and maintenance costs. THE MODEL The model oil field has been set up typical of Southern California, but could be adjusted for any other area. It is assumed that an engine mechanic's labor could be eliminated by electrifying the production facilities on a 50-well field. This is in line with past experience showing elimination of 6 mechanics for 282 wells. Well depth and production were not averaged, but were chosen to be representative of this area. Well depth was assumed to be 5,000 ft with 50 BID gross production on 1 0-acre spacing. Down-hole volumetric efficiency ranged from 26.4 to 81.7 percent yielding an average of 36.6 percent. Forty-percent volumetric efficiency was used for the model. A 64-in. stroke unit, operating at 10-1/2 spm with a 1-1/4-in. pump operating at 40 percent volumetric efficiency, would produce 50 BID from 5,000 ft. Using these figures, theoretical horsepower is calculated (using hydraulic horsepower and a 40-percent volumetric efficiency) to be 9.41 hp per well. Ten-horsepower, 480-volt 3-phase NEMA-D induction motors are used in the model. All of the past projects used in this study have included electrification of production facilities other than wells. Total auxiliary requirements have ranged from 8 to 25 percent of the total horsepower connected. Twenty-three percent was used for the model, or a total of 150 hp (two 50-hp and two 25-hp motors) will be installed.
Number of Pages	6
File Size	296 KB
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