RE­TURN ON IN­VEST­MENT

As oil pro­duc­ers fo­cus on driv­ing down costs and emis­sions dur­ing the lin­ger­ing price slump, Ed­mon­ton-based In­dus­trial En­gines mar­kets ul­tra-ef­fi­cient com­bined heat and power units, and a sys­tem that cap­tures vented well­head meth­ane to drive pump­jacks

Alberta Oil - - CONTENTS -

Ul­tra-ef­fi­cient com­bined heat and power units could de­liver big sav­ings on power and emis­sions

IN­DUS­TRIAL EN­GINES, AN ED­MON­TON-BASED COM­PANY,

has been pow­er­ing the oil in­dus­try as far afield as Mex­ico and Al­ba­nia with diesel and nat­u­ral gas-fu­eled en­gines and pumps for nearly half a cen­tury. But today’s oil prices have knocked the bot­tom out of the bar­rel. De­spite the low loonie, even over­seas sales have slowed since the slump. “The price of oil is killing ev­ery­thing,” Al Dobler, In­dus­trial En­gines’ gen­eral man­ager says. “[We sell] equip­ment that’s used af­ter drilling a hole—and no one’s buy­ing any­thing be­cause they’re not drilling holes.” Fur­ther­more, most of the firm’s ma­chin­ery is im­ported from the U.S., where prices rise for Cana­dian pur­chasers as the loonie falls. Com­bined with the drilling de­cline, it com­pounds the do­mes­tic de­mand slump. “Busi­ness is down 70 per­cent since 2014,” Dobler adds.

How­ever, as Cana­dian oil pro­duc­ers swing to­wards low­er­ing pro­duc­tion costs, in­stead of fo­cus­ing sim­ply on get­ting it out of the ground as quickly as pos­si­ble when prices were $100 per bar­rel, In­dus­trial En­gines is turn­ing with them, tar­get­ing the market with cost- and car­bon-cut­ting ma­chin­ery.

The firm is pin­ning its hopes on co­gen­er­a­tion units

IN­DUS­TRIAL EN­GINES GEN­ERAL MAN­AGER AL DOBLER WITH A CO­GEN­ER­A­TION (COM­BINED HEAT AND POWER) UNIT THAT CAN REACH 90 PER­CENT EF­FI­CIENCY WITH A FIVE-YEAR PAY­BACK

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