An upstream oil and gas company operating in the ERCOT North Zone faced mounting challenges with high electricity costs and inefficiencies in their energy management. Critical systems required uninterrupted power, but non-critical operations ran inefficiently during peak price periods.
The company needed a smarter approach to managing energy costs while maintaining operational stability
The company faced three major challenges impacting its energy management and cost control.
Firstly, high peak demand costs were a significant issue. Charges during coincident peak (CP) events contributed heavily to expenses, and the absence of effective tools for predicting and managing these peaks worsened the financial strain.
Secondly, inefficient non-critical operations added to the problem. Systems such as HVAC and lighting were running at full capacity even during expensive energy periods, resulting in avoidable waste and inflated costs.
Lastly, there were missed opportunities due to fragmented data systems. This made it difficult to track energy usage, forecast peaks accurately, and enroll in demand response programs. Consequently, the company lost potential savings and revenue streams.
Arcus Power implemented AI-driven solutions tailored to the company’s needs, transforming their energy management approach.
The first solution involved Peak Prediction and Alerts. By providing real-time insights, Arcus Power enabled the company to predict coincident peak events. This allowed the company to adjust operations proactively and avoid high costs during peak periods.
Next, the platform implemented Targeted Load Reduction. Non-critical systems were identified and scheduled for scaling back or rescheduling during high-cost periods, ensuring efficient energy use without disrupting critical processes.
Arcus Power also introduced a Demand Response Strategy. The company was assisted in enrolling in demand response programs. Through these programs, actionable insights allowed the company to safely reduce energy consumption during grid events, further minimizing costs.
Finally, the solution included Centralized Energy Monitoring. By unifying all energy data into a single dashboard, the company could track usage effectively and implement changes seamlessly across multiple sites, making energy management much more efficient.
By adopting Arcus Power’s solutions, the company achieved the following:
The company’s transformation serves as a model for other energy-intensive operations, proving that energy management doesn’t have to be complex with the right tools. With Arcus Power’s solutions, the company turned inefficiencies into opportunities, creating a more sustainable and cost-effective operation.
Chemical Injection Optimization: Enhanced efficiency using drag reduction agents (DRA).
Electrification for Decarbonization: Transitioned from natural gas pumps to electric pumps, aligning with environmental goals.
Pump Power Optimization: Improved energy efficiency in midstream operations.
