Analysis of Solar Power as an Alternative Electrical Supply for the Oil and Gas Field Development

Abstract

The selection of power plants in the upstream oil and gas business is highly dependent on the availability of gas from its own production, to be used as a power source for its own exploration process. Oil and gas working areas, mostly located in remote areas are very far from the power grids, hence the employment of diesel power plants are often chosen as the power supply. This study investigates solar power generation as an alternative of electricity supply in upstream oil and gas field by utilizing empty open space in the area of oil and gas well as the location where the solar panel is installed. With project scenarios following the development plans or drilling of oil and gas wells, we found that the development of solar power plants could provide greater revenue/benefits to the Production Sharing Contractors and the Government, rather than using diesel engine and hybrid power plants.