J. PILAR, Sulzer, Alovera, Spain; and M. TALWAR, Sulzer, Dubai, United Arab Emirates
Although wholesale electricity prices declined in many countries in 2024, prices remain significantly above pre-COVID levels in most regions, except for the U.S. With the energy crisis having squeezed the margins of many operators, there is a refreshed interest in investigating areas for efficiency savings.
This is further underlined by the rising cost of carbon taxes on emissions, influenced by factors such as policy changes, economic activity and the energy transition. Improving energy efficiency will typically not only immediately reduce energy costs, but also creates an element of future proofing against further energy cost crises and carbon taxes.
Carbon and electricity costs, and environmental, social and governance (ESG) pressures are rising. Due to their volatility, carbon markets are a point of significant long-term uncertainty for many operators. In 2015, for example, European Union (EU) emissions allowances were trading at around €7/t. By 2023, this had spiked to €100/t. While carbon permit costs have fallen to around €66/t, that is still nearly ten times higher than just a decade ago. Continued expansion to the scheme is likely to increase costs and volatility once more with market analysts forecasting that carbon prices could surge to $156/metric t by 2030.1
ESG reporting is also accelerating interest in energy efficiency. In Europe, the phased implementation of the Corporate Sustainability Reporting Directive will require oil and gas operators to submit compliance reports providing detailed disclosures on general and ESG factors.
With these benchmarks set and carbon and electricity costs forecast to increase in the future, oil and gas operators will be under greater pressure to deliver year-on-year carbon intensity improvements. Whether by integrating renewables, introducing carbon capture or making other large investments in innovation, they must do so while remaining profitable and meeting increasingly stringent societal expectations.
These investments will be most successful if a plant operates as efficiently as possible from the outset. Yet, while many operators are undertaking exciting and innovative energy efficiency projects, pumps are too often excluded from the scope. This is a lost opportunity to consider the plant holistically and could be costing oil and gas operators millions of dollars in pump efficiency improvements every year.
Common misconceptions about pump operation and efficiency. While there is often a preference to first review larger pieces of equipment such as boilers, compressors, turbines and coolers, smaller pieces of equipment like pumps can often be a significant source of energy efficiency savings, particularly when aggregated together across a whole plant or pipeline or when considered as part of a holistic review of plant operations. Pump inefficiency can also have a detrimental impact on ancillary equipment such as valves and piping, further underscoring the benefit of a holistic approach.
Sometimes, operators are aware of inefficient pumps but believe that replacing them is their only option. In this instance, when comparing the capital cost—including all the new pipework and infrastructure required—the payback period becomes unattractive. However, many retrofit options now offer improved pump performance, creating significant costs and carbon savings, along with increased reliability, at a fraction of the investment.
Some operators may have previously dismissed energy efficiency improvements due to long payback periods. However, with rising industrial energy costs, the economics have shifted—many improvements now deliver stronger returns, with payback periods of less than 2 yrs in some cases.
Longer payback periods are also becoming more viable, especially in countries with rising carbon tax regimes. In Germany, for instance, the national emissions trading system is set to raise the carbon price from €30/t in 2023 to €55/t–€65/t in 2026.2 In 2023, a single inefficient 500-kWh BB4 pump running for 7,000 hr/yr would have cost around €44,400 in carbon certificates.a In 2026, that price is set to double to between €81,800 and €96,200. Combined with energy savings, retrofits that once failed internal thresholds may now be commercially attractive. Meanwhile, some operators are unaware that their pumps are being operated in a limited or constrained mode. This is common if the operator does not have an advanced analytics tool that can monitor a pump’s performance in real time against its original design.
Pumps will typically run reliably and efficiently when they are operated within their preferred operating region (POR) and maintained routinely. However, operating pumps outside of their POR can lead to poor reliability and energy inefficiency. Just like when a car engine is driven frequently at high revolutions per minute, operating outside a pump’s POR can put greater stress on the engine, leading to increased wear and poor fuel economy.
The multi-million-dollar pump efficiency opportunity. A recent study conducted using data collected by the authors’ company’s advanced analytics solutionb found that 10% of pumps across upstream, midstream and downstream operations could save > $100,000/yr if they were operated more efficiently. A further 25% could save an average of $50,000/yr.
The study found that on average, each pump represented a $28,000/yr savings; however, the range was significant, with some larger pumps offering a savings of up to $500,000/yr each.
The opportunity was found to be most notable for downstream operations because of frequent changes in fluid handling, and the need to reutilize existing equipment to keep capital costs down, which often lead to significant operational inefficiencies. Retrofitting through a hydraulic re-rate rather than fully replacing a pump is a particularly attractive option to improve energy efficiency in these circumstances.
Similarly, upstream and midstream operators could save hundreds of thousands, or even millions of dollars per year when aggregating savings across an entire operation. For example, an audit of a Pakistani pipeline operator’s BB3 multistage pumps revealed a potential saving of up $500,000/yr from just four pumps.
When and where to start with pump efficiency. While full-scale energy efficiency upgrades at plant level can take months or even years to complete, small interventions like optimizing pump performance can offer much quicker returns. With volatile electricity costs, carbon prices expected to trend upwards and mounting ESG pressures, there is no time like the present to make these changes to operations.
Most oil and gas operators are advancing along their digitalization journey, with many adding sensors and collecting data for process-critical equipment. For those pumps where data is available, a holistic approach that assesses all pumps at once and prioritizes improvements by their cost and carbon potential is optimal. Alternatively, following the 80-20 rule—reviewing the 20% of pumps that consume 80% of the power—is a sensible place to start.
For those pumps that do not have instrumentation due to cost or complexity, there are several indicators that a pump could be operating outside its preferred operating range which would incur significant inefficiency. Examples include a pump that is drawing > 10%–15% power than its original design, an API pump not in a corrosive environment that has a mean time between failure of < 2 yrs–3 yrs, or a pump that experiences frequent seal failures or leaks.
From data to delivery. For those operators that do not have the internal resources to conduct an analysis, the authors’ company’s energy optimization service offers an end-to-end, four-step service that brings together digital analysis, machine-learning and ongoing monitoring, with the hands-on experience of retrofit experts to realize cost, carbon and tax savings.
Once a pump’s historic data has been collated, a baseline is established and efficiency improvements are identified. Cost and carbon savings are identified and retrofit options outlined—these can include mechanical improvements to reduce losses, surface treatment of the pump’s volutes/impellers to reduce friction, and the rerating of pump hydraulics to match current process requirements.
As well as being more cost-effective, optimizing energy efficiency through retrofits is typically less intrusive and will often lead to improved reliability. Once installed, the solution is monitored to ensure it continues to deliver the efficiency uplift forecasted.
This service was recently used by an international oil company based in Europe to save > €5 MM/yr in operational costs, and 7,750 t of carbon emissions by upgrading four BB5 lean amine pumps with new hydraulics and upgraded coatings.
Supporting profitability and ESG. Pumps offer oil and gas operators a significant opportunity for energy efficiency improvements, with the potential to save hundreds of thousands or even millions of dollars per year. While sensor data is the ideal place to identify inefficiencies, physical signs such as leaks, failures and high energy consumption also offer telltale signs that should be investigated. Rather than replacing equipment, retrofit solutions offer a cost-effective option that leads to significant performance improvements, supporting operators’ profitability and ESG commitments while futureproofing operations. HP
NOTES
An inefficient 500-kW BB4 pump running for 7,000 hrs will consume around 3,150 MWh of electricity and produce roughly 1,480 t of carbon emissions
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LITERATURE CITED
BloombergNEF, “Europe’s new emissions trading system expected to have world’s highest carbon price in 2030 at €149, BloombergNEF forecast reveals,” March 6, 2025, online: https://about.bnef.com/insights/commodities/europes-new-emissions-trading-system-expected-to-have-worlds-highest-carbon-price-in-2030-at-e149-bloombergnef-forecast-reveals/
International Carbon Action Partnership, “German National Emissions Trading System,” 2022, online: https://icapcarbonaction.com/system/files/ets_pdfs/icap-etsmap-factsheet-108.pdf