Company Says It Can Make Steam From Sunshine, Competitive With Natural Gas
November 6,2015-
Nearly half the oil produced in California requires steam injection to coax the heavy liquid out of the ground. Oilfield steam us a huge user of natural gas consuming about 14% of all natural gas used in the state
Almost all of that heavy oil and steam injection happens in Kern County which is why GlassPoint’s John O’Donnell attended the annual Kern Energy Summit a few days ago
His message – GlassPoint technology is competitive in price with natural gas even at today’s bargain prices. Today all injection comes for boilers fueled by nat gas.
With a glass building constructed on site, GlassPoint’s technology uses parabolic mirrors to capture the sun’s energy and turn water into steam. By piping 600-degree steam deep into the ground to heat rock, the sludge is liquefied and high pressure pushes it up out of the ground.
Glass Point set up a pilot plant in Kern County over four years ago at the Midway Sunset oilfield with Berry Petroleum. ” GlassPoint has proven that solar energy can deliver oilfield energy needs” says O’Donnell,VP for Business Development with the firm
The company has built a solar mega-project in the Middle East and is now returning to Kern County where they think they can smell a market opportunity.
“The solar industry pioneered low-cost financing to make their projects more affordable and now we have lenders that can do that. Also we think with the maturity of our technology and the fact our costs have come down combines to make the investment a good buy.”
Another piece of the puzzle is the need by oil companies in California to lower their carbon-footprint in the next few years.
Here’s how GlassPoint pitches that argument.
“California’s Low Carbon Fuel Standard (LCFS) requires a 10% reduction in the carbon intensity of transportation fuels by 2020. The most common compliance approaches include replacing or blending petroleum fuels with bio-based alternatives, such as ethanol. The LCFS also gives credits for Innovative Crude Oil Production when solar energy is used for steam generation.
Solar steam generation creates an economic opportunity for upstream operators. Oil producers can generate new revenue from LCFS credit sales that could completely offset the costs of solar steam generators, making solar steam the lowest-cost source of steam in California. Refiners and other regulated parties can benefit from a long-term supply of low-cost credits, improving profitability and reducing fuel costs for all Californians.
Contributing to California’s Economy
A study conducted by ICF International in partnership with the California Independent Petroleum Association (CIPA), concluded that solar energy is the lowest-cost, lowest-risk, and largest-scale opportunity to reduce the carbon intensity of petroleum fuels in the state. Solar powered oil production can grow California’s economy, reducing imported fuels while achieving California’s regulatory target.”