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6 Reasons Why Oil and Gas Companies Are Increasingly Investing in Solar Energy

Oil extraction and refining are conducted in massive volumes to fulfill the increasing demands worldwide. However, they require an energy-extensive and expensive process. The upheaval regarding global warming has made oil and gas companies look for cleaner energy solutions.

Solar energy is undoubtedly the best example of green-power resolution. The fact that solar is now the primary source of electricity used to power space missions has prompted companies in the oil and gas industries to look for ways it can potentially help process their resources.

Before you turn to an energy solutions company like CNPS, solar energy may be the innovative renewable energy solution your oil and gas company needs.

#1- Solar Energy is Cost-Effective

Let’s start with a #FunFact: Did you know that the amount of sunlight that strikes our planet per hour is enough to handle the entire world’s electricity consumption needs for the entire year?

Solar energy was once considered an expensive alternative in the early 1950s. But now, the cost has plummeted to the point that it can be produced at one-third of the cost per kilowatt hour compared to fossil fuel power generation. Advancements in technology have helped make solar energy much more affordable to produce on a commercial scale.

Market stimulating policies and extensive research and development have led to the creation of larger solar plants using high-efficiency solar cells. Many governments worldwide are pushing the industry to reduce costs to meet their greenhouse gas emissions targets.

Moreover, an average utility-scale solar plant today pays for itself within three-five years with an operating lifetime of over three decades. Maintenance and operation costs are also low, amounting to just 3% to 4% of the plant’s annual revenue.

#2- Solar Power is Easier to Install

Besides cost savings, solar plants are fast energy generation solutions for oil and gas companies. The average plant takes less than a year to build compared to the fossil fuel counterpart, which requires up to three years to generate electricity.

Solar power plants are scalable, have a quicker permitting procedure, and can be equipped with higher-efficiency modules on single-axis trackers that will follow the sun all day to increase production by up to 40%.

#3- Solar Energy is Sustainable and Resilient

Solar power installation allows oil and gas companies to access an alternate electricity source onsite. The distribution lines in remote locations frequently break down because of storms, fires, and equipment capacity limitations.

In remote locations, delayed fuel delivery for generators can also lead to downtime. Solar PV can generate electricity round the clock when paired with energy storage like traditional power stations.

solar renewable energy solution

#4- Solar Energy is Portable

The portability factor of solar power plants attracts many oil and gas producers. Most pumping stations in remote locations require power that can be too expensive due to the cost of building distribution and transmission lines.

Solar panels’ elegance is elevated because they are the only energy generation source that does not require many morning parts. The solar modules are placed outdoors, where the solar cells absorb sunlight and generate electricity.

#5- Solar Power is Clean and Green

Solar power is a boon for any company’s bottom line and its green footprint. Solar plants typically have a quicker payback time. Moreover, unlike non-renewable alternatives, solar has no negative impact on air quality.

Instead of generating Sulphur dioxide or carbon monoxide, solar can essentially help oil and gas companies earn carbon offset credits. That’s why many large oil and gas corporations have already jumped the bandwagon by installing solar plants in their oil fields while diversifying their investments with renewable energy solutions.

#6- Solar Plants Require Lower Maintenance

Most solar plants come with extended warranties that sometimes last decades. Maintenance is typically required annually, whereas solar thermal parts and PV must be changed every ten years.

With no moving parts, there are fewer chances of anything breaking down or going wrong. Since the system is generally easy to maintain, you won’t need to worry about frequent repair costs or downtimes.

Ready to Move Toward Energy Independence?

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Experts have warned that scarce resources like fossil fuels will run out soon, with little hope of replacing them. However, the sun is likely to shine for billions of years.

If you’re looking to move toward energy independence or make your operations sustainable, check out the turnkey solutions and cutting-edge products by CNPS.

As a leading complete energy solutions provider, we offer high-quality, sustainable energy solutions, including offshore and onshore wind power equipment, geothermal solutions, and non-metallic solutions, like fiberglass solutions, bars, and fiberglass-reinforced pipes to oil and gas companies.

You can also reach out to us for our holistic suite of oil and gas products, including oilfield service equipment, EOR technology solutions, cement equipment, oil country tubular goods equipment, and mud logging equipment, among other solutions.

In addition to offering cutting-edge oil and gas equipment and solutions, our energy solutions company also offers electronic equipment solutions, like TV and mobile accessories and new material solutions.

Want to learn more about our extensive range of affordable energy equipment and oil and gas solutions? Give us a call at +8618354639099!


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