Cabot Oil & Gas Corporation (NYSE:COG), a leading independent natural gas producer with significant operations in the Marcellus, recently announced that it is using natural gas from the Marcellus to fracture wells via an innovative dual-fuel technology.
The use of this exciting technology, which uses engines that operate on a mixture of both natural gas and diesel, may help reduce the use of diesel — the traditional fuel of choice to operate hydraulic fracturing equipment — by as much as 70%.
Cabot Oil & Gas Corporation (NYSE:COG)’s efforts mark the first time “field” gas has been used in northeastern Pennsylvania for this purpose. In developing and implementing the dual-fuel technology, the Houston-based company partnered with FTS International, a leading provider of well completion services for the oil and gas industry, and Caterpillar Inc. (NYSE:CAT) Global Petroleum, the oil and gas division of manufacturing giant Caterpillar .
In powering its hydraulic fracturing operations with natural gas, Cabot Oil & Gas Corporation (NYSE:COG) used a mobile pressure pumping unit provided by FTSI, which was then retrofitted with a dynamic gas blending kit from Caterpillar. This system allows diesel to be substituted with natural gas during high-pressure pumping operations and is compatible with field gas, compressed natural gas, and liquefied natural gas.
“Cabot Oil & Gas Corporation (NYSE:COG) is continually searching for ways to utilize cutting-edge, environmentally friendly technology during our operations,” said Cabot President and CEO Dan O. Dinges. “We are already converting our vehicle fleet and currently have a drilling rig using natural gas as well, so the next step is to utilize the technology on a hydraulic fracturing site.”
According to a statement released by the company, dual-fuel technology offers several benefits, including “(1) Reduced air emissions for a cleaner environment, due to a reduction in diesel usage, (2) reduced truck traffic when field gas at or near the well site is used due to a reduction in the transportation of diesel fuel to site, and (3) reduced costs, as natural gas can be a less expensive fuel option than diesel, providing potential cost savings for the industry and for energy consumers.”
Final thoughts
With its foray into dual-fuel technology, Cabot Oil & Gas Corporation (NYSE:COG) joins the likes of Apache Corporation (NYSE:APA), which in January became the first energy exploration and production company to power a full hydraulic fracturing operation using natural gas-burning engines at its Granite Wash operations in Oklahoma. By switching to natural gas, Apache said it expects to reduce fuel costs by roughly 60%, while also lowering emissions.
Apache Corporation (NYSE:APA) and Cabot Oil & Gas Corporation (NYSE:COG)’s successful efforts in using cleaner-burning natural gas are a promising development for the oil and gas industry, which is constantly under fire for its alleged neglect of the environment. Not only is using natural gas a cost-effective solution for hydraulic fracturing operations, but it is an innovative way to utilize the nation’s abundant supply of the fuel, while also minimizing greenhouse gas emissions.
The article How This Company Is Using Natural Gas in Fracking originally appeared on Fool.com.
Fool contributor Arjun Sreekumar has no position in any stocks mentioned. The Motley Fool owns shares of Apache and options on Chesapeake Energy.
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