SandRidge Energy Inc. will be a guinea pig for a Louisiana company and an industry giant looking to test natural gas-powered oil field equipment.
The Oklahoma City-based oil company has agreed to let Green Field Energy Services Inc. provide power to a well in northern Oklahoma's Mississippian formation from natural gas being produced there.
“We're excited to be part of this groundbreaking test in which our well will be producing on artificial lift without the use of an external fuel source to power the downhole pump,” spokesman Greg Dewey said. “This technology has the potential to significantly reduce our operating expenses and our environmental impact at the same time.
SandRidge, which has struggled to get electricity to its well sites in rural Oklahoma and Kansas, also is using 43 natural gas generators to reduce its diesel usage, Dewey said.
Green Field is teaming with GE Oil and Gas to bring cheaper, cleaner power generation options to the oil field, the Louisiana-based company announced this week. SandRidge and Houston-based Apache Corp. will test the equipment in their operations.
Green Field announced this week it had signed a global supplier agreement with GE, which last year partnered with Oklahoma City-based Chesapeake Energy Corp. to promote natural gas as a transportation fuel.
Chesapeake subsidiary Peake Fuel Solutions is marketing GE's modular “CNG in a Box” units to ease the spread of fueling infrastructure.
Green Field also will use the units as it works to provide customers with natural gas-fueled drilling and hydraulic fracturing equipment. The companies also plan to work together to develop other ways to deploy their technology together.
“We're thrilled to be collaborating with GE, and we're proud that this global leader in energy and power generation recognizes the advancements we have made with our turbine driven technology,” CEO Michel Moreno said.