A new report from Navigant Research examines the market for dual-fuel engines in oil & gas exploration and production, with global market data for U.S. conversions and revenue, through 2024.
Dual-fuel engines, which use diesel fuel to ignite natural gas, are becoming increasingly popular in the United States, where they are often used to power drilling rigs and hydraulic fracturing spreads. The technology reduces the amount of diesel fuel used in these applications and allows for the use of field gas that would otherwise be flared off. Click to tweet: According to a new report from Navigant Research, annual dual-fuel engine revenue in the United States is expected to grow to more than $58.1 million by 2024.
“Dual-fuel engines can make refueling easier and can also utilize a variety of fuel blends, thus increasing flexibility,” says Anne Wrobetz, research associate with Navigant Research. “In the United States, the market for this technology is expected to continue to grow, driven mostly by the perceived price security of using domestic fuels and from operating cost reductions for onsite field gas.”
Because a traditional drill rig can require upward of $2.5 million a year in diesel fuel, using natural gas, whether liquefied natural gas (LNG), compressed natural gas (CNG), or field gas, yields significant savings. According to the report, dual-fuel engines can reduce the total amount of diesel fuel used by up to 70%.
The report, Dual-Fuel Engine Market for Oil & Gas Applications, analyzes the dual-fuel engines market in two key areas of oil & gas exploration and production: drilling rigs and hydraulic fracturing spreads. The study delves into the market drivers related to dual-fuel engines, including reduced costs, lowered emissions, and increased safety for operators. Global market data for the total number of conversions and revenue in the United States extend through 2024. The report also covers the challenges associated with using different forms of natural gas to power dual-fuel engines. An Executive Summary of the report is available for free download on the Navigant Research website.