ZEUS LNG-FUELED VEHICLE REPORT
  
Encana Touts LNG-Fueled Drilling To Save on Fuel Costs
March 22, 2012

The Canadian driller sees using LNG-fuel in drilling operations as both an environmental and cost savings win.

Already a leader in LNG-fueled drilling operations, Canada’s EnCana Corporation claims to have reduced fuel costs by 47 percent compared to diesel with LNG-fuel at a shale-gas drilling site in the Haynesville play. The savings equated to approximately US$830,000, the Financial Post reported on Mar. 22. Because of the potential for “significant” savings, Encana has expressed enthusiasm for adopting LNG-fuel across their operations.

According to Encana, the savings are based on the consumption of roughly a half million gallons of fuel over 160 days, with an average price of US$3.28 per gallon of diesel and US$1.11 per gallon of LNG. In addition, the report also notes that the usage of natural gas as fuel emits 20 to 30 percent less carbon dioxide than oil based fuels, as well as less nitrogen oxides, sulfur oxides and particular matter.

During Zeus’s World LNG Fuel Summit in January, Encana representatives disclosed that the company currently operates 14 natural gas-fueled drilling rigs, with more planned. While Encana’s David Haugen noted that the company would “love to adopt LNG across our operations” he did admit that a constraint was drilling rig manufacturers, which focus on diesel-fueled systems.

  
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