Energy Efficiency in Oil Production

Based on Lincus’ experience with oil production wells in the Western U.S., energy efficiency in oil production is largely neglected and remains a significant source for productivity increases for oil production wells. Recommended improvements by Lincus engineers typically result in up to 40% savings in annual energy costs.

Between 1990 and 2010, as reported by EIA data on Petroleum Industry, daily output of crude oil production per well in California has dropped from12.2 barrels to 10.1 barrels per day while the average depth per well has increased from 4,602 to 6,084 feet. This change, although significant contributor to the operating cost of an oil production well due to average price per barrel of oil increasing from $20.03 per barrel in 1990 to about $95 per barrel in 2012 most producers are overlooking the amount of energy cost savings. Our estimate of electricity consumption as a percent of total production value has dropped from about 35% of produced value to now about 10-15% of produced value. This drop in operating cost is due to market price of oil and not due to energy efficiency efforts by producers. Lincus’ approach in the oil production sector includes efficiency and productivity improvement opportunity reviews and estimation for overall savings from the recommended improvements.

This approach identifies oil production wells with the best return on investment and productivity increase with analysis of existing operation and identification of alternative equipment matched with the current operation. In the development and the implementation of energy efficiency measures in oil production, we are recommending the following approach:

Lincus, Inc. is an energy services consulting firm with offices in Phoenix, Arizona, San Francisco and Los Angeles areas of California with significant experience and history in designing and operating energy efficiency programs. Lincus’ current experience with oil production well energy efficiency includes work with more than 500 oil production wells.