Power Generation in the Oil & Gas Industry

Power Generation in the Oil & Gas Industry
Summary
Power generation in upstream oil and gas (O and G), traditionally led by diesel gensets, is transitioning to new energy sources. While the arguments for diesel--including broad fuel availability and ease of transport and storage--have not changed, technological advances, regulations, and macroeconomics are expanding the options available to exploration and production (E and P) companies.At the same time, a variety of new business models are emerging that cut costs, boost efficiency, or otherwise improve operations in this energy-intensive industry.As O and G prices rebound from recent lows, investment in upstream power generation is expected to recover as well.Natural gas gensets are forecast to capture more market share from diesel as O and G producers utilize more wellhead gas for power generation.As fast-producing shale oil wells shorten project timelines, rentals of power generation equipment are expected to grow. Meanwhile, as battery storage declines in price, electricity producers will incorporate them into a growing share of sites to optimize power production and expand the capabilities of remote microgrids. According to Navigant Research, global capacity additions from power generation prime mover equipment are expected to grow from 3.9 GW in 2017 to 5.6 GW by 2026.This Navigant Research report analyzes the global market for power generation in upstream O and G applications, including onshore and offshore, exploration, and production.The study provides an analysis of key market developments and covers diesel, dual-fuel, and natural gas gensets, turbines, and microturbines.Global market forecasts for capacity and revenue, segmented by generation technology and region, extend through 2026.The report also examines the key technologies available for power generation in upstream O and G, as well as the competitive landscape.