Techno-Economic Analysis of Renewable Energy Application in Oil and Gas Industry: A Case Study

Oil and gas fields are often located in remote areas. Therefore, they depend on diesel generators as decentralized units for power supply. Thus, the oil and gas industry is considered one of the major greenhouse emission (GHE) sources. Hence, using renewable energy generation as an alternative power supply is important to reduce diesel fuel consumption as well as GHE. The objective of this paper is to investigate the economic and environmental effects of the implementation of different types of renewable generation to supply an oil field in Egypt. The techno-economic study shows a decrease in the levelized cost of energy (LCOE) by 55 % due to a reduction in fuel consumption. Moreover, if proper carbon pricing policies were in place, the reduction increase would be even greater.