future trends in corrosion control - nace houston section€¦ · 2 19% of total u.s. interstate...
TRANSCRIPT
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INTERSTATE PIPELINES │ EXPLORATION & PRODUCTION │ MIDSTREAM
Future Trends in Corrosion Control
NACE Houston SectionJanuary 10, 2012
Drew HevleManager, Corrosion Control — El Paso
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Obligatory Pipeline Map
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� 19% of total U.S. interstate pipeline mileage
� 26 Bcf/d capacity (15% of total U.S.)
� 19 Bcf/d throughput (30% of gas delivered to U.S. consumers)
� 19% of total U.S. interstate pipeline mileage
� 26 Bcf/d capacity (15% of total U.S.)
� 19 Bcf/d throughput (30% of gas delivered to U.S. consumers)
El PasoEl PasoNatural GasNatural Gas
Mexico Mexico VenturesVentures
MojaveMojavePipelinePipeline
ColoradoColoradoInterstate GasInterstate Gas
Wyoming Interstate
Cheyenne Cheyenne Plains PipelinePlains Pipeline
TennesseeTennesseeGas PipelineGas Pipeline
SouthernSouthernNatural GasNatural Gas
Elba IslandElba IslandLNGLNG
Florida GasFlorida GasTransmission (50%)Transmission (50%)
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Trends
� Regulatory requirements
� Public expectations
� Energy markets and sources
� Environmental requirements
� Labor costs
� Communications/electronics costs
� Data
� Pipeline congestion
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Regulatory
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Regulatory Trends
� Regulatory requirements for corrosion control are increasing
– Not a pendulum, but a ratchet
� For pipelines
– New integrity management requirements
– New requirements for construction practices
– No waivers, permits for trade-offs for maintaining levels of public safety (e.g. alternate MAOP rule)
– Eliminating grandfathering
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Effects
� Documentation– If it isn’t written down, it never happened– Expectation of regulators is for documentation of
everything forever– Even decision-making processes are documented
� Qualifications of personnel� Qualifications of materials specifications / mills /
raw materials / shipping procedures / � Increased inspections and assessments� Criminal penalties
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Public Expectations
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Public Expectation Trends
� The bar continues to be raised for public safety� With instant access to information, the general
public is much more informed about all pipeline incidents
� Social media gives the expectation of interaction between pipeline companies and the public
� Public expects companies to be responsible citizens
� High cost of civil litigation
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Effects
� Pipeline operators have to respond differently to incidents
� Public will put pressure on legislators to increase regulatory requirements
� Pipeline operators will need to do more to increase pipeline safety
� Civil liability will dictate that operators cannot simply do the minimum to meet regulatory requirements
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Energy Markets and Sources
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Energy Trends
� Non-traditional gas sources– Oil sands– Shale
� Domestic production is increasing� Public and governmental pressures for
increasingly green energy– Bio fuels such as ethanol– Green energy such as wind, solar, and
hydroelectric� CO2 pipelines for sequestration and hydraulic
fracturing
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Effects
� More pipelines going to different places
� SCC issues with ethanol
� Internal corrosion issues with CO2
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Environmental Requirements
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Environmental Trends
� Environmental awareness is increasing
� Carbon footprint
� VOCs
� SPCC requirements
� Mercury, PCBs, lead, asbestos
� New issues – fiberglass and copper are the new asbestos and lead
� Ground beds
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Effects
� Environmental approvals will take longer and be more difficult to obtain
� Costs for doing business will increase� Changes in how we do things� Companies will have to demonstrate to the
public that they are responsible� Greenhouse gas emissions will incentivize
certain activities and disincentivize others� LAUF will become extremely important
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Communications/Electronics
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Communications/Electronics Trends
� Communications costs are decreasing
� Costs of electronics are decreasing
� Consumer tie-ins will offer huge returns to scale discounts
� Everything is smart
� Everything is connected
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Effects
� Cloud data
� Increased automation
� More and more data
� Aps for mobile devices
� Tracking vehicles for efficiency
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Data
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-2,500
-2,000
-1,500
-1,000
-500
0
13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00
Time (GMT)
Po
ten
tial (m
V C
SE
)
ON Potential OFF Potential
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Data Trends
� Costs of storing data electronically
� 1Tb drive < $100
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Effects
� Data integration is key
� Databases must be accessible
� Databases must be compatible
� Need tools, systems, and infrastructure to manage data
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Labor cost trend
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Labor Cost Trends
� Labor costs are increasing in the US despite the recession
� Labor costs are significantly lower in China and Mexico, but increasing as well
� The overall cost of sending a technician with a truck and tools out to do work is increasing at a higher rate
� Pipeline employees have the highest return per employee of any major industry
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Effects
� Pipeline companies are under constant pressure to reduce operating costs
� Increased automation, such as remote monitoring, will reduce manpower requirements
� Pipeline companies will outsource any tasks that are not day-to-day operations
� Labor-intensive activities that can be outsourced will continue to be
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Pipeline Congestion
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Pipeline Congestion Trends
� Changes to energy markets and sources of production require new infrastructure
� The US currently has approximately 2.2 million miles of pipelines that transport hazardous materials
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Effects
� More sharing of rights-of-way (ROWs) with other pipelines and power transmission (HVAC, HVDC from power generation plants, wind, solar and hydroelectric)
� More issues with stray-current corrosion requiring more testing and remediation
� Increased focus on AC corrosion monitoring and mitigation
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Summary
� Expectations for public safety and protection of the environment are increasing, leading to additional costs
� Labor costs are increasing in the US and decreasing offshore, and communications / electronics costs are decreasing, leading to increased automation
� Congested ROWs and non-traditional production areas will increase the pipeline mileage in the US, leading to congestion issues
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Questions
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INTERSTATE PIPELINES │ EXPLORATION & PRODUCTION │ MIDSTREAM
Future Trends in Corrosion Control
NACE Houston SectionJanuary 10, 2012
Drew HevleManager, Corrosion Control — El Paso
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