Pioneer Energy Services Expands Test of Compressed Natural Gas Fueled Equipment
SAN ANTONIO, May 21, 2013 /PRNewswire/ -- Pioneer Energy Services (NYSE: PES) announced that it began testing trucks powered by compressed natural gas ("CNG") with the delivery of its first vehicle. The bi-fuel truck is a 2013 Chevrolet 2500HD 4X4 Extended Cab able to run on both gasoline and low-cost CNG. The truck starts with a gasoline engine but then switches automatically to run on CNG. When the truck runs out of CNG, the engine switches back to run on gasoline.
Wm. Stacy Locke, President and CEO of Pioneer Energy Services stated, "We plan to test the vehicle for the remainder of the year in Houston and Bryan, Texas due to availability of CNG fueling stations. Should we be satisfied with the test results, we could add more CNG powered vehicles to our fleet over time. Currently, CNG sells for the equivalent of about $1.99 per gallon when compared to gasoline, so with our fleet of approximately 800 pick-up trucks averaging around 40,000 miles per year per vehicle, there may be a financial incentive to add CNG-capable trucks to the fleet. In addition, the CNG engines produce about 30 percent fewer carbon dioxide emissions, resulting in an environmental benefit as well."
Pioneer is also testing the use of natural gas capable engines on three of its drilling rigs by installing fuel blending kits. The blending kits enable the rig engines to run on a blend of fuel that is up to 70 percent natural gas and 30 percent diesel. If natural gas isn't available, the engines can run on 100 percent diesel. Pioneer estimates annual cost savings up to $700,000 per year per rig for operators of its rigs if the engines are run on a fuel blend that is 70 percent natural gas and the price of natural gas is around $4.00 per thousand cubic feet. Additionally, Pioneer estimates that carbon monoxide emissions will also be reduced up to 70 percent if engines utilize the fuel blend that is 70 percent natural gas.
Pioneer Energy Services provides contract land drilling services to independent and major oil and gas operators in Texas, Louisiana, the Mid-Continent, Rocky Mountain and Appalachian regions and internationally in Colombia through its Drilling Services Segment. Pioneer also provides well, wireline, coiled tubing and fishing and rental services to producers in the U.S. Gulf Coast, offshore Gulf of Mexico, Mid-Continent and Rocky Mountain regions through its Production Services Segment.
SOURCE Pioneer Energy Services