Oil producer Diamondback Energy may add nuclear fission energy as a power source for drilling operations in the Permian Basin, taking another step toward lowering its emissions.
California-headquartered Oklo Inc., a fission power plant developer, on April 8 said it signed a letter of intent with the Midland, Texas-based independent to collaborate on a 20-year power purchase agreement (PPA) with a 20-year extension option.
The PPA will focus on use of Oklo’s Aurora powerhouses, which are scalable liquid metal-cooled, metal-fueled fast reactors that generate usable heat and between 15 megawatts (MW) and 50 MW of electricity.
The partnership emerges as oil companies are taking additional steps to lower emissions while securing reliable access to electricity to power field operations.
The move could mark the start of a future shift in powering oil fields with operators moving from diesel generators to electricity from the power grid to small nuclear reactors onsite.
“By developing and providing a low-cost, high-reliability, and emission-free energy source, Oklo is poised to help meet the growing energy requirements of operators like Diamondback,” Oklo CEO Jacob DeWitte said in a news release.
As part of the PPA, Oklo plans to license, build and operate powerhouses capable of generating 50 MW of electric power to Diamondback E&P LLC, Oklo said in a news release. The powerhouses are designed to operate for 40 years.
Recommended Reading
US Finalizes Big Reforms to Federal Oil, Gas Drilling
2024-04-12 - Under the new policy, drilling is limited in wildlife and cultural areas and oil and gas companies will pay higher bonding rates to cover the cost of plugging abandoned oil and gas wells, among other higher rates and costs.
National Petroleum Council: A Realistic Path to Scaling US Hydrogen
2024-05-15 - A report by the National Petroleum Council, the culmination of about 18 months of work, offered 23 recommendations to help the hydrogen industry grow through 2050.
Under Siege: Industry Cuts Emissions Despite Biden's ‘Attack’ on E&Ps
2024-05-20 - IPAA Chairman and Elevation Resources CEO Steve Pruett shared insight on industry’s concerns over regulations carried out by an “alphabet soup” of agencies from the Environmental Protection Agency to the Federal Trade Commission.
Oil, Gas Production Fee Set to Hit Colorado Producers
2024-05-01 - The deal reached this week will eliminate several proposed ballot measures targeting the fossil fuel industry ahead of this year's election, including one that would have halted drilling in summer months.
US Republican Attorneys General Sue to Stop EPA's Carbon Rule
2024-05-09 - The rule, finalized by President Joe Biden's administration last month as part of an effort to combat climate change, was challenged in three lawsuits filed in the U.S. Court of Appeals for the District of Columbia Circuit.