Research on the Economic Benefits of the Application of Source-grid-load-storage System in Oilfield Enterprises

While the central government of China established its "dual carbon" goals, transformation of energy structure has become key component of the country's energy revolution and economic reform. Installment of the "Source-Grid-Load-Storage" (SGLS) systems is crucial for implementation of the ESG goals in domestic oilfields and uplifting of the economic efficiency for oil production. The SGLS system is a micro power grid capable of dispatching power among multiple equipment in the most efficient way but to consider multi factors including power generation, power storage, and electrical load. However, the randomness and intermittency of renewable energy power generation imposes significant challenges to the SGLS systems control, making it difficult to assess the economic benefits and therefore being undervalued by oil companies for its potential ESG benefits.To promote SGLS systems to be applied in the oilfields, this paper proposes a model to assess economic benefits of the SGLS system. Based on real data generated by sample Oilfield, an operation model designed for the SGLS system is established to access the optimal cost structure. Factors that have been built into the model include the main grid purchasing cost, dissipation cost during power transport, photovoltaic power generation cost, and energy storage cost. By calculating the optimal cost structure with the mentioned multi factors built in, the model can predict operational outcome of the SGLS system in real-time and guide on the power dispatching. Meanwhile, the model is trying to maintain the minimum requirement of energy reserve. Based on scenario testing, the economic benefits of SGLS system in oilfield production are assessed with an optimized cost approach, therefore a valuable reference for the oil industry. This research also conducted interviews with key people in the oil industry and proposes strategies to improve the economic benefits of SGLS systems in Oilfield based on takeaways from those interviews. This could be value-adding to accelerate construction of SGLS systems and its application in the oilfields. Meanwhile, the SGLS operational model designed in this paper as a power generation solution is innovative to the energy industry and with obvious economic benefits. Therefore, it could also be an enabler of the oil industry’s sustainable development in the long run.