American Oil and Gas Reporter - September 2022 - 26

Example Projects
With multimile laterals draining entire drilling spacing units
from a few pads, operators who are considering long-term development
plans can leave thousands of acres open on the
surface, creating a prime opportunity for partnering with a renewable
energy developer. I have explored this opportunity in a
previous land development role with an upstream operator in
the western United States.
Along with geology and engineering, we were able to plan
for 1,280 acre stand-up DSUs across the field, generally drilled
from a single well pad, and evaluate the solar integration
potential on thousands of acres of remaining company-owned
surface tracts. A local solar developer was engaged to facilitate
a feasibility study on incorporating solar into the field's layout.
The field was remote enough that the transmission lines needed
for a full utility-scale layout were few and far between, but
there were several remote well sites with pumping units driven
by supplemental propane.
Our study found that these sites could be designed to
incorporate a ~25 kilowatt-hour, site-specific solar array with
battery backup. This system would remain within the bounds of
the well site yet outside the deadmen, allowing it to provide
electricity to maintain production levels while reducing operating
costs and emissions.
For a field where an even larger-scale solar deployment is underway,
look no further than the Chevron/SunPower Lost Hills
Field in California, a 200-plus megawatt project. The solar
power plant on Chevron lands will supply approximately 80%
of the field's energy. To minimize operating costs, the project includes
a storage system that gives Chevron greater control over
when to rely on solar power and when to draw electricity from
the grid.
" For oil and gas companies of all types, partnering
with utility-scale solar can offer a way
to diversify income portfolios, lower holding
tax liability and meet environment, social and
governance goals. "
Employing the battery/energy storage system also increases
the number of state Low Carbon Fuel Standard credits 15%
beyond the credits from solar alone. By partnering with utilityscale
solar, Chevron will lower its overall cost of power and
shrink GHG emissions. This project can be emulated in oil and
gas fields across the nation.
Even much smaller fields can integrate solar. Utility-scale
solar projects can make economic sense for surfaces as small as
600 acres. In addition, neighboring acreage can be joined
together to meet the acreage-scale project minimum, making
solar partnerships available to independents of all sizes.
Operators who have landholdings that are used jointly for
tenant farming, ranching or other agricultural activities may
consider partnering with solar developers to lease that land for
26 THE AMERICAN OIL & GAS REPORTER
http://www.shale-water-marcellus-utica.com
American Oil and Gas Reporter - September 2022

Table of Contents for the Digital Edition of American Oil and Gas Reporter - September 2022
