Interview with Andrew Likens from Crusoe Energy Systems
Our exclusive interview series continues with energy leader Andrew Likens, Vice President of Business Development at Crusoe Energy Systems, who joined us to discuss Digital Flare Mitigation systems, challenges in incorporating new technologies, and more. Andrew Likens will be joining a panel discussion at this year’s North American Gas Forum and will be among an inner circle of key industry leaders sharing discourse and debate in Washington D.C. this October.
We are pleased to share our recent conversation with Andrew.
ED: Can you please share with us Crusoe Energy Systems’ mission and role in the energy industry?
AL: Crusoe’s mission is to reduce the practice of routine flaring of natural gas by deploying modular data centers directly into the oilfield. Crusoe’s data centers provide an on-site beneficial use for flared gas and also reduce emissions by processing gas through EPA-compliant generators and emissions control systems. Our goal is to provide operators with an economic solution to the environmental and regulatory challenge of flare gas, and in the process, power the world’s growing digital infrastructure directly in the oilfield.
ED: Crusoe is currently operating five Digital Flare Mitigation systems and you plan to provide up to ten additional ones by the end of 2019. Can you share with us more details on these projects?
AL: Crusoe has Digital Flare Mitigation agreements in place with 6 different operators across the Bakken, Powder River, and DJ basins. We are already with both public and private upstream companies in North Dakota, Wyoming, and Colorado, and expect to be operational in Montana shortly. By the end of the year, Crusoe’s Digital Flare Mitigation Systems will prevent the routine flaring of about 2 MMcfd, representing a 20X increase from the scale of our first project deployed in Wyoming less than one year ago.
ED: What are some of the main challenges in incorporating new technologies? How can the private sector and government collaborate to drive innovation and accelerate the integration of new technologies?
AL: The energy industry is massive, so it requires large capital expenditures in order to build the physical systems and infrastructure required to move the needle on any issue. The government has chosen to incentivize energy producers, such as renewables like solar, wind and geothermal, in the past. Those incentives brought us to higher levels of renewable energy adoption because capital investors and operators could make an easier case for investment decisions. Perhaps the government could provide a similar incentive for operators who reduce flaring, such as a tax credit like the Investment Tax Credit (ITC) mechanism that has been popular in renewables.
ED: You will be participating as a panelist at this year’s North American Gas Forum in a panel where the future of energy will be discussed. In your opinion, what is the key role of digitalization and AI in the energy transition? How will new technologies impact the industry?
AL: Technology has always been at the forefront of the energy industry, and specifically digitization has already made a huge impact on how the industry operates. From seismic data and reservoir modeling to SCADA systems for surface operations, the oil industry has already begun its digital transformation. At Crusoe, we see that AI and machine learning hold great promise to improve efficiency, safety, and profitability for the industry, and our technology teams have already begun working on solutions in those areas, which we look forward to showcasing to industry in the not-too-distant future.
ED: What are you most looking forward to at the North American Gas Forum?
AL: The opportunity to meet with and hear from leaders and decision-makers at such a wide range of organizations is unique. It is rare to find an event that brings together upstream, midstream, services, and government at such a high level. The North American Gas Forum is special in this regard, and I look forward to meeting with as many of these participants as possible – there certainly is a lot to learn from and discuss with this group.
Energy Dialogues proudly presents the 2019 North American Gas Forum, taking place in Washington D.C. this October. Featuring a cutting-edge program, fabulous speaker line-up, and premium networking opportunities, NAGF is the ideal platform to share unbiased perspectives and drive solutions to the multidimensional complex that is energy. Join Andrew Likens and other prominent energy front-runners for panel discussions, round tables, networking opportunities, and commercial benefits.