Whether it is economical to use combined heat and power (CHP) system for the efficient utilization of associated petroleum gas in oil extraction sites in China: A cost-benefit analysis considering environmental benefits
The efficient use of associated petroleum gas with combined heat and power (CHP) systems in oil extraction sites has proven to be technically feasible, but its economic inefficiency continues to deter oil companies from using CHP, given that simple fuel cost reductions do not yield significant posit...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-12-01
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| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2022.984872/full |
| _version_ | 1811178237775052800 |
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| author | Mingjian Chen |
| author_facet | Mingjian Chen |
| author_sort | Mingjian Chen |
| collection | DOAJ |
| description | The efficient use of associated petroleum gas with combined heat and power (CHP) systems in oil extraction sites has proven to be technically feasible, but its economic inefficiency continues to deter oil companies from using CHP, given that simple fuel cost reductions do not yield significant positive returns in the face of large investments in purchasing and maintaining CHP. This research constructs a cost-benefit analysis model, which includes the monetized environmental benefits generated by CHP. A pilot experiment operated in a certain oilfield in Shandong province shows that the annual difference between the reduction in fuel costs and the investment in purchase and maintenance of CHP is only about ¥210,000 per device. However, when environmental benefits including health benefit and low-carbon benefit are included in the model, the annual environmental benefits of a single equipment update can be about ¥760,000, and the overall annual net benefits will reach about ¥970,000. It is concluded that the application of CHP in oil extraction sites is economically efficient, taking into account the environmental benefit it can produce. The research results will help oil companies use CHP to make more contributions to carbon and air pollutant emission reduction. However, considering that a large number of CHP systems can form a distributed energy structure, the proposed model still has limitations. |
| first_indexed | 2024-04-11T06:16:19Z |
| format | Article |
| id | doaj.art-5105ecf2ddca432a93351e550bbcc7dd |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-11T06:16:19Z |
| publishDate | 2022-12-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-5105ecf2ddca432a93351e550bbcc7dd2022-12-22T04:41:03ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2022-12-011010.3389/fenvs.2022.984872984872Whether it is economical to use combined heat and power (CHP) system for the efficient utilization of associated petroleum gas in oil extraction sites in China: A cost-benefit analysis considering environmental benefitsMingjian ChenThe efficient use of associated petroleum gas with combined heat and power (CHP) systems in oil extraction sites has proven to be technically feasible, but its economic inefficiency continues to deter oil companies from using CHP, given that simple fuel cost reductions do not yield significant positive returns in the face of large investments in purchasing and maintaining CHP. This research constructs a cost-benefit analysis model, which includes the monetized environmental benefits generated by CHP. A pilot experiment operated in a certain oilfield in Shandong province shows that the annual difference between the reduction in fuel costs and the investment in purchase and maintenance of CHP is only about ¥210,000 per device. However, when environmental benefits including health benefit and low-carbon benefit are included in the model, the annual environmental benefits of a single equipment update can be about ¥760,000, and the overall annual net benefits will reach about ¥970,000. It is concluded that the application of CHP in oil extraction sites is economically efficient, taking into account the environmental benefit it can produce. The research results will help oil companies use CHP to make more contributions to carbon and air pollutant emission reduction. However, considering that a large number of CHP systems can form a distributed energy structure, the proposed model still has limitations.https://www.frontiersin.org/articles/10.3389/fenvs.2022.984872/fullcost-benefit analysisassociated petroleum gascombined heat and power (CHP) systemenvironmental benefithealth benefitlow-carbon benefit |
| spellingShingle | Mingjian Chen Whether it is economical to use combined heat and power (CHP) system for the efficient utilization of associated petroleum gas in oil extraction sites in China: A cost-benefit analysis considering environmental benefits Frontiers in Environmental Science cost-benefit analysis associated petroleum gas combined heat and power (CHP) system environmental benefit health benefit low-carbon benefit |
| title | Whether it is economical to use combined heat and power (CHP) system for the efficient utilization of associated petroleum gas in oil extraction sites in China: A cost-benefit analysis considering environmental benefits |
| title_full | Whether it is economical to use combined heat and power (CHP) system for the efficient utilization of associated petroleum gas in oil extraction sites in China: A cost-benefit analysis considering environmental benefits |
| title_fullStr | Whether it is economical to use combined heat and power (CHP) system for the efficient utilization of associated petroleum gas in oil extraction sites in China: A cost-benefit analysis considering environmental benefits |
| title_full_unstemmed | Whether it is economical to use combined heat and power (CHP) system for the efficient utilization of associated petroleum gas in oil extraction sites in China: A cost-benefit analysis considering environmental benefits |
| title_short | Whether it is economical to use combined heat and power (CHP) system for the efficient utilization of associated petroleum gas in oil extraction sites in China: A cost-benefit analysis considering environmental benefits |
| title_sort | whether it is economical to use combined heat and power chp system for the efficient utilization of associated petroleum gas in oil extraction sites in china a cost benefit analysis considering environmental benefits |
| topic | cost-benefit analysis associated petroleum gas combined heat and power (CHP) system environmental benefit health benefit low-carbon benefit |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2022.984872/full |
| work_keys_str_mv | AT mingjianchen whetheritiseconomicaltousecombinedheatandpowerchpsystemfortheefficientutilizationofassociatedpetroleumgasinoilextractionsitesinchinaacostbenefitanalysisconsideringenvironmentalbenefits |