American Oil and Gas Reporter - August 2023 - 86

Universal also has invested heavily in
dual-fuel equipment. " Two years ago,
30% of our fleet was dual fuel capable.
At the end of the third quarter, 80% will
be, " Sagar details. " Dual-fuel equipment
has a greatly reduced emissions profile
and is generally more economic than
diesel-only systems. "
In the long run, Sagar says Universal
envisions performing many jobs with 100%
natural gas. Toward that end, the company
is exploring next-generation technology
that has had positive initial results. " These
next-generation platforms require a significant
capital investment, one we can
make only with customer commitments, "
he mentions. " However, their benefits are
strong enough that, over time, they could
lead to a significant fleet transition. "
Electric Fleets' Appeal
Electric fleets offer several advantages,
says Sam Sledge, chief executive
officer of ProPetro, a Permian-focused
company that provides pressure pumping,
wireline and cementing services.
" Electrified equipment provides much
more power density, significantly longer
asset life, a smaller footprint, lower
operating costs and a better emissions
profile, " he clarifies.
Sledge calls the horsepower density
essential to keeping pace with completions
intensity. " During the past 10 or
15 years, the typical Permian Basin completion
has expanded from a daylight
operation with 30,000 or 40,000 horsepower
on location to a 24/7 operation
with 70,000 or 80,000 horsepower on
location, " he recounts. " Today, a large
pad may need 20-30 diesel or dual-fuel
pumping units. With our new electric
fleets, we can do the same job with half
as many trailers. "
Sledge explains that each trailer carries
two 3,000 horsepower pumps instead of
a single 2,500 horsepower pump. The
pumps and their electric motors also require
far less maintenance, Sledge suggests.
" To put the difference in perspective,
think of a two-cycle motor in a weed
eater and an electric motor in a ceiling
fan or a fridge, " he poses. " While the
weed eater needs attention, the electric
motors will run for years without any.
" Our electric fleets' components have
long lives, " Sledge adds. " The turbines
and power generators that provide the
electricity can last as long as 20 years,
and the electric motors on each pumping
unit may live 10. That is a big improvement
from diesel engines, where the average
is somewhere between four and
six years. "
The electric equipment's horsepower
density means that fewer people need to
be on site during operations. In conjunction
with less maintenance work, Sledge predicts
this will improve safety.
Because the fleets generate power
using natural gas, their environmental
impact will be lower than diesel fleets,
Sledge continues. " Beyond those emissions
reductions is a significant economic
benefit to using a lower-cost
fuel in natural gas. It could create upwards
of 20% of an indirect price decrease
to our customers, " he reports.
" Given how well safety, environmental
and economic incentives align with efleets,
we are confident the transition
to them will be sustainable. "
Sledge acknowledges that electric
fleets cost more to build than dual-fuel
equivalents when accounting for power
generation. " However, the opportunity to
pull costs out and earn over a longer
period outruns the extra upfront investment, "
he assures.
" That said, we are doing something
unique for our first four e-fleets, " he
relates. " Instead of spending $40 million-$50
million before we even deploy
an electric fleet, we have created a commercial
agreement with our manufacturer
that allows us to lease and pay for the
equipment during the initial contract.
This lets us spread our capital costs across
time and match them to the revenue the
fleets will generate. "
While he expresses excitement about
electric fleets, Sledge says dual-fuel
spreads will continue to be a vital part of
pressure pumpers' offerings. " Electric
will not be for everybody, " he predicts.
" It will appeal to operators who have the
large completion programs and well inventories
to make the long-term commitments
we need to invest in the equipment.
Dual-fuel fleets will step in for
smaller programs or ones in areas where
getting natural gas is impractical. "
ProPetro's first two electric fleets
should arrive in the third quarter of this
year, with two more following early next
year, Sledge projects. " By the first quarter
of next year, more than two thirds of our
spreads will be electric or dual fuel, " he
concludes.
Proppant Quality
It can be easy to focus on completing
wells as quickly and affordably as possible,
especially when times are tough, acknowledges
Carl Montgomery, a senior
engineer with NSI Technologies. This
cost-cutting philosophy frequently extends
to proppant. " That can be a big mistake,
because the quality of the proppant has a
huge impact on the well's economics, "
he advises.
Montgomery explains that high-quality
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American Oil and Gas Reporter - August 2023

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