Breadcrumbs

Home > Resources and Tools > Engineer Resources > PowerConnect Newsletter > September 2014 > Generac Meets Two Sweetspots in the Oil and Gas Sector: Upstream and Downstream
Generac Meets Two Sweetspots in the Oil and Gas Sector: Upstream and Downstream

Generac Meets Two Sweetspots in the Oil and Gas Sector: Upstream and Downstream

9/10/2014

The petroleum industry is divided into three major components: upstream, midstream and downstream. The upstream sector includes searching for potential crude oil and natural gas fields, drilling of exploratory wells, and drilling and operating the wells. The midstream sector involves the processing, transportation, storage, and wholesale marketing of crude or refined petroleum products. The downstream sector refers to the refining of petroleum crude oil and the processing of natural gas, as well as the distribution of products. Generac provides products to serve two of these areas: upstream and downstream.

The upstream market is predominantly prime power and Magnum Power Products, a Generac owned company, has been serving the upstream oil and gas market for more than 25 years. Magnum offers a mobile gaseous generator product line specifically designed for this industry. 

“In the upstream market, many companies rely on diesel fuel. However, relying solely on diesel fuel ultimately adds significant costs to the overall project because they are not utilizing the well gas that naturally occurs during the site preparation stage,” explains Shelly Koeck, Vertical Marketing Manager, Magnum Power Products.

“Since our gaseous generators can operate on well gas, as well as propane and natural gas, companies can use our generators during the construction of the well when gas byproducts are not available, and switch to the gas byproducts when they become available, which is a key market advantage,” she explains. Magnum offers built-in fuel/water separation, so it is not necessary to purchase and install a scrubber to ensure the gas is clean enough to use.

In addition, the generators have an engine management system that is self-regulating, allowing them to switch to an alternate fuel, should there be an issue with the well gas.  The line includes large mobile generators up to 350 kW (with a current 297kW prime power rating) and a new 400 kW generator which will be introduced this fall.

The Magnum units are mobile so they can be moved from site to site and are compatible with most telematics or GPS systems to locate and manage the generators.  Users can specify a telematic system and have it installed prior to delivery or install the device once the unit arrives.

“Magnum offers a network of experienced oil and gas industry technicians dedicated to the deployment of mobile gaseous generators. We help install and set-up the generator, test the well gas, to ensure everything is working properly, and provide ongoing maintenance and support,” Koeck adds.

The downstream sector includes refineries and processing plants, as well as convenience stores. Those users primarily need standby/emergency generators to ensure that products and services keep flowing, even during an outage.

For major refineries, gaseous-fueled standby generators tend to offer the best options. With single gaseous generators up to 400 kW and diesel products up to 2MW, our products are durable and reliable and can stand up to tough operating environments.

Convenience stores have many product options with respect to size and fuel source. However, local codes, property restrictions, and possible possible government funding may dictate certain requirements.

Generac’s team of Industrial Power Distributors can offer advice and guidance to contractors and engineers specifying systems for convenience stores. We will also alert you about funding programs available in the state(s) where the facilities are located.

For additional information about our upstream or downstream products, contact your authorized Generac Industrial Power distributor or dealer.


SEPTEMBER 2014 POWERCONNECT ARTICLES