Oilfield electrification is one of the energy sector’s most talked-about trends—but not for the reasons you might expect. While early efforts were driven primarily by the need to reduce emissions, today’s push for electrification is increasingly focused on a more immediate challenge: power access, uptime, and cost reduction.
Remote well sites, midstream facilities, and gas processing plants all need reliable power. But grid delays, fluctuating diesel costs, and unreliable fuel logistics make conventional options difficult. Oilfield operators are now turning to electrification to reduce costs, increase operational reliability, and limit production downtime—all while still working toward decarbonization goals.
Oilfield Electrification Applications
Operators are increasingly turning to oilfield electrification for multiple applications:
- Gas Lift Systems (Artificial Lift)
Gas lift systems inject high-pressure natural gas into the well casing to reduce the hydrostatic pressure and lighten the fluid column, enabling liquids to flow more easily to the surface through the production tubing. - Electric Submersible Pumps (ESPs)
Used to lift large volumes of fluid from deep wells using electric power. - Automation and Remote Operations
Enable SCADA systems, sensors, and edge computing with reliable electrical power. - Produced Water Management
Used to power pumps and water midstream infrastructure for transporting, treating, and/or disposing of produced water. - Production Equipment
Used to power electric motors on pump jacks, fans, pumps, and other equipment. - Frac Operations
Electric frac fleets (e-fracs), replace conventional diesel-powered pump trailers with electric motors. - Drilling Operations
Electric drilling rigs (e-rigs) replace traditional diesel engines and mechanical drive systems with electric motors. One example is the PACE series of electric Onshore SmartRigs® from Nabors.
Oilfield Electrification Strategies
Electrification can be approached in two primary ways: plugging into the utility grid or generating power onsite. Each strategy comes with tradeoffs.
Plug Into the Grid
Pros:
- Simple Setup
Once power lines are run and transformers are in place, grid-tied connections can be relatively easy to manage. - Emission reduction potential
By switching from diesel or field gas to utility power, operators can displace direct Scope 1 and Scope 3 emissions.
Cons:
- Long lead times
In oilfield regions, utility connections can take 18–24 months to permit and construct. - Scope 2 tradeoffs
Utility power doesn’t always come from clean sources. Emissions aren’t eliminated; they’re moved to Scope 2—and in some areas, the grid mix may be dirtier than using natural gas onsite. - Reliability Risk
Rolling blackouts, storm damage, and curtailment policies can make the grid less dependable than self-generation in remote areas.
Self-Generation: Individual Sites or Microgrids
Pros:
- Speed to power
Natural gas-powered generators can be installed and running in weeks—not years. - Cleaner than you think
In many areas, natural gas gensets produce fewer emissions than the utility grid, especially when paired with fuel gas conditioning. - Use what you produce
Field gas that would otherwise be flared can now power operations, reducing waste and emissions. - Improved reliability
With redundant gensets or microgrids, operators have more control over uptime.
Cons:
- Operational complexity
Genset maintenance and fuel gas management require training and manpower. - No market access
Unlike grid-tied systems, most self-gen setups can’t sell excess power back into the market.
Access to Power
Self-generation is increasingly becoming more popular with operators.
HART Energy reported in November 2024 that some operators in the Permian Basin faced a two-year wait for a connection to an electrical grid, according to a 2022 report from the Texas Public Utilities Commission.
Enbridge spokesman Michael Barnes confirmed that “To date, some of our projects and facilities have been impacted by power availability and increased timelines for requests to connect to the electrical grid in the Permian. We have also been impacted by reliability issues at certain locations in the basin.”
Most operators are not willing to wait years to develop their resources, driving the trend to self-generation options.
The Role of Fuel Gas Conditioning in Oilfield Electrification
Natural gas or dual fuel (Diesel and Natural gas) generators are a popular choice for oilfield self-generation, particularly when operators can use their own produced gas. In electric completion and drilling applications, e-fracs and e-rigs equipped with dual-fuel engines offer a practical bridge between traditional diesel power and full electrification by allowing operators to replace a significant portion of diesel consumption or CNG with cleaner-burning natural gas, including field gas that might otherwise be flared. This flexibility not only lowers fuel costs but also reduces emissions, improves fuel logistics, and supports ESG objectives. By blending diesel with natural gas—or running fully electric where infrastructure allows—operators can optimize energy use, enhance operational reliability, and transition more smoothly toward low-carbon, high-efficiency oilfield operations.
However, not all field gas is created equal. Heavy hydrocarbons, liquids, and contaminants can cause engine derating, spark plug fouling, high emissions (i.e., VOCs, NOx), and reduced efficiency in natural gas gensets and determine the achievable Diesel replacement ratio of dual fuel engines.
This is where fuel gas conditioning (FGC) becomes essential. By stabilizing and cleaning up fuel gas before it reaches the engine, FGC systems protect the equipment, ensure consistent performance, reduce emissions of regulated substances, allow operators to run reliably with leaner fuel, and maximize the Diesel replacement ratio.
The Problem with Traditional Fuel Gas Conditioning Methods
The problem with most FGC systems, such as J-T skids is that they do not deliver effective separation of heavy hydrocarbons, also known as natural gas liquids (NGLs) from the fuel stream. As a result, these valuable BTU-rich NGLs are combusted in the fuel gas, wasting potential profits, generating higher emissions, and reducing engine efficiency.
J-T skids provide a “good enough” solution for some FGC applications, but they are vulnerable to freeze-ups, leading to process upsets and/or unplanned downtime, both of which threaten microgrid reliability and performance. Unfortunately, the J-T process leaves a significant volume of NGLs in the fuel gas stream and is not capable of precise selectivity.
The Solution for Fuel Gas Conditioning: MaCH4 NGL Recovery Solution
The performance and efficiency of microgrids using natural gas powered gensets is directly related to the quality of fuel gas.
The MaCH4 NGL Recovery Solution from Coldstream Energy is a PSA technology-driven solution for generating lean, pipeline quality fuel gas without the vulnerabilities associated with J-T skids. The MaCH4 solution uses patented, proven Pressure Swing Adsorption (PSA) technology that allows you to separate a feed gas stream from a high pressure pipeline into a lean fuel gas stream to fuel the genset and a stream of NGLs to be reinjected in a low pressure pipeline for downstream recovery, instead of burning them up in fuel gas.
Benefits of MaCH4 for Fuel Gas Conditioning
The MaCH4 system delivers pipeline quality, lean fuel gas to your production equipment resulting in these benefits:
- Eliminate engine derating for maximum efficiency and throughput.
- Reduce VOC emissions from gas powered engines by separating heavy hydrocarbons from the gas stream.
- Increase revenue by separating NGLs from the gas stream for later recovery downstream, contingent on your gas gathering contract terms.
- Maximize the Diesel displacement ratio for Dual Fuel engines and related environmental and cost benefits.
- Allows CNG substitution, reducing cost and reducing or eliminating any associated trucking.
Case Study
The MaCH4 solution proved its value proposition in a rigorous pilot project with Iron Horse Midstream that was converted into a permanent installation by now.
In the Pilot, the MaCH4 NGL Recovery Solution was benchmarked against a J-T Skid. The Pilot employs a 4-bed PSA system with a compressor package delivering high-pressure feed gas to the MaCH4 unit. The MaCH4 unit generates a lean fuel gas stream for the compressor station engines and recovers significantly more heavy hydrocarbons remaining in a gaseous state for later processing at a gas processing plant.
MaCH4 Technology Beats J-T Skid:
- Eliminated engine derating, for a horsepower increase of up to 9% for maximum efficiency and throughput.
- Over 70% fewer VOCs were emitted when operating on fuel produced by the MaCH4 unit compared to J-T fuel gas.
- Delivered cryogenic-like recovery performance without low temperature requirements, capturing 60% C2 and 95% C3+ heavy hydrocarbons for recovery further downstream, separating valuable NGLs, and boosting profits.
- Power smarter. Reduce downtime. Capture value.Oilfield electrification is no longer just about emissions—it’s about securing the power you need today, keeping production online, cutting costs, and monetizing waste. Whether grid power is years away or simply too unreliable, self-generation with natural gas gensets is becoming the default option for many operators.But the key to making it work isn’t just the generator, it’s the fuel gas. That’s where Coldstream Energy’s MaCH4 NGL Recovery System makes the difference. It’s more than fuel gas conditioning—it’s a revenue-generating, performance-optimizing tool that unlocks the full value of your self-generation solution for oilfield electrification.Ready to maximize the performance of your self-generation capability powered by natural gas?
Contact us today to explore the right fuel gas conditioning solution for your site.
