Modeling and Optimization of an Integrated Energy Supply in the Oil and Gas Industry: A Case Study of Northeast China

The oil and gas industry has large and constant power and heat loads and usually ownership of land resources near oil and gas production, providing opportunities for onsite integration of renewable energy. In the future, a possible decrease in reliable and affordable electricity production capability by the power grid, mainly due to the penetration of intermittent renewable energy, makes seeking an alternative energy supply a wise choice for the oil and gas industry. Foreseeable carbon emission costs also drive the oil and gas industry to a less carbon-intensive way of production. However, it is not yet clear whether it is economically viable for the integration of renewable energy in the oil and gas industry. In this work, we propose a modeling and optimization framework for conceptual planning and the operation of an oilfield’s energy system, where energy demands—heat and power in particular, are supposed to be met by an integrated energy supply including both fossil fuels and renewable energy. Herein, an oilfield in Northeast China has been then taken as a case study. The results indicate that under current conditions with no power purchase limits, integrating renewable energy is not economically viable. As the power purchase limits the decrease by a certain threshold, renewable energy integration becomes essential for maintaining a stable power supply, with renewable energy capacity reaching 35% in a self-sufficient microgrid configuration. Similarly, as electricity prices rise, the deployment of renewable energy begins to exhibit economic viability at 1.5 times the current electricity price. Independent microgrids show better economic resilience compared to grid-dependent systems under rising electricity prices. When carbon prices increase, the heat electrification transformation for microgrids achieves a cost inflection point at USD 76.4 per tonne, resulting in overall cost reductions. These findings emphasize the importance of flexible, renewable energy-driven energy systems in cost-effective decarbonization and energy stability, providing insights for optimizing oilfield energy systems and supporting China’s carbon neutrality goals.