Supporting the Energy Industry’s Carbon-Reduction Journey 

Energy is foundational to every economy and a force multiplier for modern society’s most basic and essential functions — from powering homes to fueling the world’s vast transportation and supply chain networks. As global growth and the proliferation of data centers exponentially increase worldwide energy demands, the oil and gas industry must overcome the challenge of how to access and produce additional resources while also reducing greenhouse gas (GHG) emissions.

As vital contributors to the world’s future energy mix, drilling and oilfield services companies continuously seek to adopt innovative solutions that focus on maximizing efficiency and performance while decreasing GHG emissions. Caterpillar Oil & Gas is committed to supporting these efforts through developing cost-effective technological advancements that satisfy performance and climate-related objectives. The latest evolution of dual-fuel engine technology exemplifies this focus, as it displaces significantly more diesel than previous generations while improving thermal efficiency.

Embracing Fuel Flexibility

With climate-related targets becoming a core part of overall drilling and well services strategies, business considerations no longer center solely on meeting production targets or reducing operational costs. As oilfield companies are under greater pressure to lower GHG emissions in today’s capital-disciplined environment, solutions must be effective and economical.

Methane emissions receive additional scrutiny and are a critical measure in today’s oil and gas industry operations, according to an International Energy Agency (IEA) report.1 Methane emissions are also one of the most cost-efficient and impactful measures of GHG emissions across the economy.

Implementing solutions that support the use of gas and other alternative fuels are one of the industry’s key strategies to reduce diesel consumption, curb GHG emissions and overcome rising fuel costs. Today’s drillers and well services companies can achieve greater displacement and lower GHG emissions with less operational downtime with the Cat® Dynamic Gas Blending™ (DGB) dual-fuel technology. The DGB Gen 2 upgrade kit prioritizes diesel displacement, operational savings and GHG emissions reduction. Existing fleets can take advantage of the cost and climate-related benefits offered in the latest iteration of this fuel-flexible technology at an engine’s next major overhaul.

Greater Diesel Displacement for Climate-Related and Cost Benefits

Providing affordable access to pivotal technology for dynamic oilfield applications, DGB Gen 2 Kits provide up to 85% diesel displacement. Upgrading an existing Cat 3512C Tier 2 diesel engine with a DGB Gen 2 Kit can help drillers achieve up to a 45% reduction in GHG emissions and reduce methane slip more than 80%, when compared to conventional dual fuel kits.2 Drillers can displace diesel with natural gas by an average of 65%, with up to 85% peak diesel displacement under certain conditions. As the rate of diesel displacement can vary, drillers can estimate fuel cost savings using an online DGB Fuel Calculator.

Economical solutions like the DGB Gen 2 Kit enable companies to eliminate the need to purchase new Tier 4 or natural gas engines, preserving capital while maintaining high performance standards and decreasing GHG emissions. This allows companies to remain nimble as industry requirements shift.

A Vibrant Energy Future

As many oil and gas companies journey toward a lower-carbon future, setting targets to significantly reduce GHG emissions by the end of the decade,3 equipment manufacturers are aiding these efforts by investing in R&D to produce innovative technologies that keep pace with these changes.

Every operation is different — there truly isn’t a ‘silver bullet’ approach to lowering GHG emissions. With nearly a century of oil and gas equipment manufacturing experience, Caterpillar Oil & Gas is well-positioned to help oilfield companies identify synergistic approaches that address the unique needs of specific projects to continuously enhance performance, optimize costs and maximize uptime.

Achieving the right balance between robust performance and reduced GHG emissions will be key to help the oil and gas industry advance toward a reduced-carbon future.

1. International Energy Agency (IEA). May 2023. https://www.iea.org/reports/emissions-from-oil-and-gas-operations-in-net-zero-transitions.
2. Caterpillar Press Release. November 2024. New Cat DGB Gen 2 Tier 2 Kit Delivers Significant Emission Reductions and Cost Savings.
3. S&P Global Commodity Insights. COP28: Fifty Oil and Gas Companies Sign Methane, Net Zero Pledges. www.spglobal.com/commodityinsights/en/market-insights/latest-news/energy-transition/120223-cop28-fifty-oil-and-gas-companies-sign-net-zero-methane-pledges.

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