Dual-fuel engines are becoming a popular option for powering drilling rigs and hydraulic fracturing spreads in the United States. These engines utilize diesel fuel to ignite natural gas, reducing the total amount of diesel fuel used by up to 70%. Dual-fuel engines can make refueling easier and allow for the use of field gas that would otherwise be flared off. In addition, these systems can utilize a variety of fuel blends, thus increasing flexibility.
A traditional drill rig can require upwards of $2.5 million a year in diesel fuel, as per Prometheus Energy. Using natural gas, whether liquefied natural gas (LNG), compressed natural gas (CNG), or field gas, is a way to reduce this cost significantly. Pilot projects are underway by several major energy producers and OEMs, and the total number of dual-fuel engines installed in the United States is increasing. This is especially true for hydraulic fracturing spreads. According to Navigant Research, annual dual-fuel engine revenue in the United States is expected to grow to more than $58.1 million by 2024.
This Navigant Research report 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.
Key Questions Addressed:
- What are the primary applications of dual-fuel engines in the oil & gas sector?
- What are the costs and benefits associated with converting oil & gas equipment to dual-fuel technology?
- Which companies are pushing this market forward—and in what ways?
- What are the pros and cons of different fuels used to power oil & gas operations?
- How many dual-fuel engines are currently being used, and how many are likely to be used in the future?
Who needs this report?
- Energy developers
- Oil & gas producers
- Engine equipment manufacturers
- Natural gas developers
- Government agencies
- Investor community
Table of Contents
1. Executive Summary
2. Market Update
2.1 Introduction to Dual-Fuel Engine Applications
2.1.1 Traditional Drill Rigs and Fracturing Spreads
2.2 Demand Drivers
2.2.1 Cost Benefit
2.2.3 Ease of Use and Safety
2.3 Market Barriers
2.3.1 High Capital Cost
2.3.2 Fluctuating Price of Oil
2.3.3 Drilling Rigs
2.3.4 Well Stimulation and Hydraulic Fracturing
2.4 Fuels Used
2.4.1 Field Gas
2.5 Market Issues and Forecasts
2.6 Key Players
2.6.1 American Power Group
2.6.7 Noble Energy
2.6.8 Precision Drilling
2.6.9 Prometheus Energy
2.6.11 Seneca Resources Corporation
2.6.12 Smith Power Products
2.6.13 Southwestern Energy
3. Conclusions and Recommendations
List of Charts and Figures
- Cumulative Dual-Fuel Systems in Operation, United States: 2015-2024
- Annual Dual-Fuel Engine Revenue, United States: 2015-2024
- Annual Drilling Rigs Converted to Dual-Fuel Capability, United States: 2015-2024
- Annual Fracturing Spreads Converted to Dual-Fuel Capabilities, United States: 2015-2024
- Dual-Fuel Engine Functioning