Patterson-UTI operates a significant natural gas fueling business that supports both its own operations and those of other companies. This business includes the operation of two CNG facilities and over 100 truck trailer systems for delivering compressed natural gas. Patterson-UTI powers approximately 2 million horsepower of natural gas-powered equipment, a mix of its own and third-party equipment. The natural gas delivered annually equates to roughly 1 gigawatt hour of electricity.
Growth and Expansion
The natural gas fueling business has grown significantly, with volumes in 2024 expected to be up more than 25% from 2023. In June, Patterson-UTI delivered its 100 millionth diesel gallon equivalent of natural gas, amounting to over 13 billion cubic feet supplied to customers.
Diesel Displacement and Efficiency
The company’s frac plus fuels integration leads the industry in diesel displacement on dual-fuel fleets, achieving over 40% more diesel displacement compared to competitors. This enhances fuel cost savings and improves the marketability of natural gas-powered assets.
Future Outlook and Technology
Patterson-UTI is introducing new blending technology to optimize natural gas usage, particularly in complex fuel gas treatment scenarios like those in the Permian Basin. The company is focused on leveraging its established technology position in power services, dating back to its 2018 acquisition of an electrical engineering and manufacturing business specializing in medium- and high-voltage electrical controls, automation, microgrids, and proprietary battery energy storage solutions.
Non-Oil and Gas Applications
The natural gas fueling team has supplied microgrid components and systems to marine vessels, dredge vessels, cranes, and production facilities. Patterson-UTI is exploring further opportunities to provide power services outside the oilfield, including to data centers and other industries with high energy demands.
Operational Integration
The integrated natural gas fueling business, a part of NexTier since 2021, complements Patterson-UTI’s broader power services, offering a comprehensive suite of solutions. The business is capable of providing CNG and fuel gas for a variety of equipment, further enhancing its offerings and potential market reach.
Summary
Patterson-UTI’s CNG business is a vital and growing component of its operations, providing significant diesel displacement, cost savings, and operational efficiency. The company is poised for further growth in natural gas fueling, both within the oil and gas sector and in other high-energy-demand industries.
