Electrifying the Oilfield: The Comparative Economics of Grid Power and Onsite Gas Generators (Draft Jan 30 2017)

When it comes to electrifying the oilfield, the industry narrows its focus onto monthly energy charges (energy, demand, and basic charges), somewhat disregarding the considerable capital expenditures necessary to build out and maintain electric infrastructure. Onsite generation may not be the optimal solution in every application, but at least in terms of cost in the current environment, generators appear to offer a competitive alternative.