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Aggreko Blog

How renting power and temperature control equipment can help cut costs for oil and gas companies

Mar 9, 2016 10:00:00 AM / by Russell Brown

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As low oil prices show little sign of strengthening, Aggreko is seeing oil producers increasingly turning to rental options for power generation and temperature control equipment to reduce costs and avoid capital expenditure throughout the full lifecycle of a rig.

In this blog, Russell Brown, Area Sales Manager for Oil and Gas, explores the benefits of renting power and temperature control equipment and how Aggreko can assist - from providing temporary power for construction and commissioning of rigs, through to production, decommissioning and abandonment.

Rental savings

As profitability falls and capital expenditure budgets are cut, Aggreko is seeing more and more oil and gas companies looking to reduce their costs and capital investment by increasingly renting specialist power generation and temperature control equipment.  Renting is often a lower cost, lower risk and more flexible option than buying equipment.

Our clients can also avoid the time consuming process involved with getting capex sign-off, and instead, use operational or maintenance budgets.

Meeting variable power demands

A key benefit of hiring generators comes from their flexibility. When customers buy generators they will specify equipment to meet their project’s current power demand, but requirements often change over time. When demand falls for example, the generators could be working inefficiently, wasting fuel and creating the possibility of excessive emissions.  While if requirements increase, then an additional power source will be required. 

Temporary generators offer a flexible solution, as they can be hired on a long or short-term basis and can be scaled up or down with very short lead times, to meet varying power requirements.

Service and maintenance is covered

Renting power reduces the responsibility and risk that lies with our customer in terms of servicing and maintenance. Using rental generators moves the risk and responsibility of service, maintenance and repair to us and away from the customer. 

Working with Aggreko, customers have assurance that the equipment is fully tested and serviced ready for immediate use, rather than relying on their own equipment that can deteriorate overtime and prove unfit for purpose if it’s not regularly serviced.

All-inclusive cost

As managers increasingly seek budget certainty, the Aggreko team looks for more ways to support. 

A site survey carried out by our engineers can provide detailed and accurate project budgets for turn-key solutions, from consultancy through to installation, service and repair, and eventual removal. 

We are seeing increased demand for our fixed cost model, which is fully inclusive of all ancillary equipment, spares, servicing and maintenance.  As such, our customers can forecast and budget accurately, with no hidden costs.

Flexible solutions for oil and gas lifecycle

Rental power and temperature control solutions are increasingly being used during all phases of the exploration and production life cycle. This includes:

Construction:

Temporary power is often required for construction projects without adequate mains supply, both for on and offshore applications. 

Commissioning:

Power can be required during hook-up, whilst hired loadbanks can be used to load test emergency generators and UPS units to ensure full functionality before they go online.

Back-up power:

Rental generators can be used to fill power gaps and ensure that full production continues if the regular power supply is disrupted. For facilities without back-up power, temporary generators can be available on stand-by to provide a reliable, cost effective emergency power source.

Secondary power:

The power demands of many facilities often meet or even exceed their maximum power supply.  If there are additional power or voltage requirements, e.g. for construction or drilling projects, to power cranes, pumps or drill rigs etc, temporary generators may be used.

Planned shutdowns and maintenance:

Temporary power provision can be used during periods of planned maintenance to allow operations to run as normal or with minimum interruption. 

Accommodation:

Providing power and comfort cooling for worker accommodation.

Decommissioning and abandonment:

Rental power can be used as part of the deconstruction activity.  The power provision can be scaled up or down to meet the specific needs of the project as it progresses, including critical power on NUI and MMI facilities.

If you require further information about Aggreko’s oil and gas power or temperature control solutions, please contact us on 03458 24 7 365.

Alternatively, visit our dedicated webpage to download our Oil and Gas brochure. 

Russell Brown

Written by Russell Brown

Area Sales Manager – Scotland and Ireland