In recent years, Jinan Diesel Engine Co., Ltd. (000617) has developed a diesel/natural gas dual-fuel engine and its associated generator set specifically designed for oil drilling power. Known for maintaining a high new product contribution rate, the technology has recently been recognized by the China Petroleum System Expert Group. This breakthrough project has successfully filled a critical gap in the market for high-power dual-fuel engines above 1000KW, both domestically and internationally.
With global energy demand on the rise, the energy crisis continues to intensify. Natural gas, due to its clean-burning properties and abundant reserves, has emerged as a promising alternative fuel. It not only helps balance the energy structure but also supports energy conservation and environmental protection goals. As the petroleum industry evolves and drilling equipment becomes more advanced, the conflict between energy shortages and the need to reduce drilling costs and improve efficiency has become increasingly evident.
According to industry data, fuel consumption in drilling machinery accounts for over 20% of total drilling costs. Drilling operations often take place in remote locations where transporting diesel is challenging. However, many oil fields already have access to natural gas, which is nearly cost-free after minimal processing. This makes it an attractive and practical fuel source for power equipment.
Given these challenges, developing a diesel/natural gas dual-fuel engine tailored for oil drilling rigs has become a pressing need. Utilizing local natural gas resources instead of diesel can significantly cut drilling costs and enhance economic returns.
It is reported that CNPC plans to gradually transition rigs that are suitable for natural gas engines, replacing traditional diesel engines with dual-fuel alternatives. This move aims to achieve substantial cost reductions. Once the technology matures and proves reliable, it will be expanded into the international drilling rig power market. Beyond oil drilling, these dual-fuel engines can also serve as new power solutions for fixed power generation, natural gas gathering systems, and compression equipment across China.
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