Future Trends in Corrosion Control

Transcription

1 INTERSTATE PIPELINES EXPLORATION & PRODUCTION MIDSTREAM Future Trends in Corrosion Control NACE Houston Section January 10, 2012 Drew Hevle Manager, Corrosion Control El Paso

2 Obligatory Pipeline Map Colorado Interstate Gas Tennessee Gas Pipeline Wyoming Interstate Cheyenne Plains Pipeline Mojave Pipeline Southern Natural Gas Elba Island LNG El Paso Natural Gas Mexico Ventures Florida Gas Transmission (50%) 19% 19% of of total total U.S. U.S. interstate interstate pipeline pipeline mileage mileage Bcf/d Bcf/d capacity capacity (15% (15% of of total total U.S.) U.S.) Bcf/d Bcf/d throughput throughput (30% (30% of of gas gas delivered delivered to to U.S. U.S. consumers) consumers) 2

3 Trends Regulatory requirements Public expectations Energy markets and sources Environmental requirements Labor costs Communications/electronics costs Data Pipeline congestion 3

4 Regulatory 4

5 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 5

6 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 6

7 Public Expectations 7

8 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 8

9 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 9

10 Energy Markets and Sources 10

11 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 CO 2 pipelines for sequestration and hydraulic fracturing 11

12 Effects More pipelines going to different places SCC issues with ethanol Internal corrosion issues with CO 2 12

13 Environmental Requirements 13

14 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 14

15 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 15

16 Communications/Electronics 16

17 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 17

18 Effects Cloud data Increased automation More and more data Aps for mobile devices Tracking vehicles for efficiency 18

19 -2,500-2,000 Potential (mv CSE) -1,500-1,000 Data :00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 Time (GMT) ON Potential OFF Potential 19

20 Data Trends Costs of storing data electronically 1Tb drive < $100 20

21 Effects Data integration is key Databases must be accessible Databases must be compatible Need tools, systems, and infrastructure to manage data 21

22 Labor cost trend 22

23 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 23

24 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 24

25 Pipeline Congestion 25

26 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 26

27 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 27

28 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 28

29 Questions

30 INTERSTATE PIPELINES EXPLORATION & PRODUCTION MIDSTREAM Future Trends in Corrosion Control NACE Houston Section January 10, 2012 Drew Hevle Manager, Corrosion Control El Paso

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