All-Electric Fracking Systems Bring Significant Opportunity for Natural Gas Producers

All-electric fracking systems are starting to gain traction among natural gas producers. These systems are powered by natural gas directly from the well pad. Traditional fracking systems use diesel fuel, which is costly to purchase and transport. All-electric fracking systems can be significantly cheaper, quieter, and more environmentally friendly than their diesel counterparts.

Several major players have been using or testing the use of all-electric fracking systems recently, and they have seen millions of dollars in savings. This innovation represents a significant opportunity for fracking outfits with all-electric capabilities and for producers. Other stakeholders also benefit from the more environmentally friendly operation, not to mention the reduced noise pollution and truck traffic to and from the wellsite.

Established fracking service providers face risks if the technology becomes widely adopted because of their significant investment in traditional fracking systems. Conversion to an all-electric fracking fleet would be pricey, because all-electric units rely on natural gas turbines, which are significantly more expensive than the diesel motors that power traditional fracking units.

Producers will likely be eager to implement all-electric fracking systems as more data becomes available to support the benefits over traditional systems. Established fracking service providers will be reluctant to convert their fleets because of their investment in traditional fracking systems. Ultimately, market forces will determine how quickly all-electric fracking is adopted by the industry.

With offices in Pittsburgh and Columbus, the Schneider Downs Energy and Natural Resources Energy Group is available to discuss industry issues at your convenience.

Sources:

https://www.oilandgas360.com/range-resources-sees-success-with-all-electric-frack-testing/

https://www.reuters.com/article/us-usa-oil-electric-fracturing-focus/low-cost-fracking-offers-boon-to-oil-producers-headaches-for-suppliers-idUSKCN1VX112

 

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2019 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

All-Electric Fracking Systems Bring Significant Opportunity for Natural Gas Producers
PA DEP Issues 2018 Oil and Gas Annual Report
Is Your Royalty Check Correct?
PUC Distributes Almost $252M in Impact Fees
Continued Compliance with CAISO SQMD Requirements in Non-Reporting Years
Rock You Like a Hurricane (..Maybe)

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office
Pittsburgh

One PPG Place, Suite 1700
Pittsburgh, PA 15222

contactsd@schneiderdowns.com
p:412.261.3644     f:412.261.4876

Map of Columbus Office
Columbus

65 East State Street, Suite 2000
Columbus, OH 43215

contactsd@schneiderdowns.com
p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102