Instrumentation, System Integration and Expert Capability: Critical Success Factors for Pipeline and Refining Operations

This guest blog post is written by Darlene K. Gregory

solenoid shutdown system # 2

Measuring pressure, temperature, flow and level in the pipeline is critical for midstream and upstream producers. When the pipeline is miles long, as many in the Texas Eagle Ford Shale, Bakken Shale and the Texas Permian Basin are, the quality of your process tubing, compression fittings and instrumentation is as critical as the pipeline itself to the profitability of the producer.

Instrumentation and process systems regulate interface levels in tanks to separate oil and water, so oil can be trucked to refineries for processing or to the nearest port for shipment. Faulty instrumentation or process systems can cause lower pricing for your product, as the oil is “contaminated” by excess water.

“Producers spend many millions of dollars to install the pipeline, X-ray the wells, and hydrotest the pipe. Correct, meticulous installation of process systems, tubing and compression fittings in the pipeline prevents lines from blowing or leaking – ensuring safe operations for staff, the community and the environment.” said Rolando Perez, Project Manager of Rabalais I & E Constructors’ Instrumentation & Systems Integration Division. “When oilfields become prolific, such as the Eagle Ford Shale has, many mechanical and roustabout companies enter the market to provide instrumentation and process tubing services. Unfortunately, many of these companies are unaware of the critical nature of correct insertion of the tubing and fittings. We’ve been called to remedy faulty installations time and time again,” said Darrell Harned, Vice President of Instrumentation & Systems Integration.

Instrumentation and process systems regulate interface levels in tanks to separate oil and water, so oil can be trucked to refineries for processing or to the nearest port for shipment. “Faulty instrumentation or process systems can cause lower pricing for your product, as the oil is “contaminated” by excess water,” said Harned.

Rabalais Instrument & Electrical Constructors has served the oilfield, refining and petrochemical industries nationwide for 30 years. Located just 60 miles from the Eagle Ford Shale, in Corpus Christi, Texas, the company employs several hundred certified and trained electricians, instrumentation, RTU/SCADA and system integration specialists. With offices in San Antonio, Houston, Dallas, Midland/Odessa and Louisiana, the company has long term relationships with some of the biggest names in the petroleum industry…NuStar, Anadarko, Chesapeake, Citgo, Valero, Texas Star and Exxon to name but a few, both in the field and in the refineries.

solenoid shutdown system #1

Rabalais provides installation, calibration, and loop check of all types of pneumatic/electronic instrumentation utilized for control and monitoring of process systems. The company’s NCCER Certified Instrument Fitters and Instrument Technicians can assist you on any new construction, revamp, maintenance, or turnaround project nationwide. Rabalais addresses the client's business needs through conceptual design while utilizing state of the art construction disciplines to examine the entire scope of the project. Its project managers and team leaders incorporate all project issues to provide the greatest potential of success for clients, including cost improvement, life cycle expenditures, capital cost expenditures, project management, scheduling, procurement, installation, process training, service and maintenance.

Rabalais’ extensive experience in all types of industrial processing facilities has allowed the firm to create a safe and productive working environment that exceeds all national standards for the industry. It takes pride in its unique ability to integrate disparate systems to increase efficiency and production.

The company’s capabilities include:

• Installation of Pneumatic / Electronic / Hydraulic Instrumentation per client standards & specifications
• Select and procure material per client specification
• Design and fabricate elaborate tubing tray support systems
• Interpretation of client drawings and specifications
• Installation / Design of Steam and Electric Trace Systems
• Install Pneumatic, Process Impulse, Sample and Hydraulic Tubing Systems
• Instrument & Electrical construction, maintenance and turnaround services
• Project estimating, planning and scheduling
• P&ID walkdowns
• Constructability reviews
• Steam tracing
• System Maintenance

In refineries, as in the field, Instrument Calibration is critical to a successful installation of any instrument system. Accuracy of the information produced by any instrument is dependent on proper calibration. OEM-stated procedures are used by Rabalais technicians to correct any inaccuracies and document findings. Services are offered in your facility without removal of the equipment or disturbing normal process operations. Rabalais saves time and cost during construction of your project by performing Field and Bench Calibrations prior to installation. The company calibrates, certifies and documents every instrument. Pre-installed instruments are field calibrated. All Calibration Services include complete control loop testing.

“Experience has taught us that project success requires early planning, continual monitoring, and full, open and regular communication with our clients. Rabalais programmers are experts in System Integration Design, providing interfaces and implementing complex control strategies.”

— Harned

ince all departments necessary for successful integration are in-house at Rabalais, the firm is a single source for a complete turnkey control system project of exceptional quality. Formal project management methodology is used on every project. Rabalais’ mission is to ensure clients receive cost-effective solutions, reduced down time, and are provided total asset protection.

From initial design and consultation, through system development, commissioning and support, Rabalais' innovative control and automation solutions keep your systems online.

Programmable Logic Controller (PLC) Systems are integral to safe plant operations. Rabalais provides the following services for PLCs:

1. Control logic for various PLC & hardware vendor • relay ladder logic • function block diagram • sequential function chart • structure text • instruction list
2. Operator interface hardware programming (character displays to graphical touch screens)
3. UL control system panels
4. Fully documented control logic programs
5. PID loop control programming and fine tuning
6. Dial-up program support
7. Industrial communication layout design and implementation (Ethernet, ControlNet, DeviceNet, Modibus, Profibus & others)

Rabalais is a recognized leader in the petrochemical, refining and oilfield services industry. The company’s EMR safety record is unmatched, and its many safety awards attest to its commitment to training its staff for excellence.

“We always find it interesting how many companies we compete with during “boom” periods,” said Harned with a chuckle. “Rabalais has spent three decades investing in state of the art technology to provide top quality electrical, instrumentation, system integration and RTU/SCADA programming for our valued friends in the industry. When all the others leave, Rabalais is still growing our clients’ revenues and maintaining their projects and plants safely.”

For more information on how Rabalais Instrument & Electrical Constructors can enhance your bottom line, call 361-242-3121 or visit www.rabalais.com.

Weathering the Oil Crisis

Thunder Exploration, Inc

Daily news reports continue to announce cuts, layoffs and mergers from big producers, but it is the smaller companies who may be the most vulnerable during the current oil crisis.

Related: Small Oil Companies Express Optimism

Today, I am featuring an interview with independent geologist, Walter Light, to get his perspective on the current downturn.

Thanks for taking a few minutes to give me your perspective on what is happening in your sector. Tell me a little about yourself.

I am an independent geologist and formed Thunder Exploration, Inc. in 1981. We like to see ourselves as a prospect-generating shop with a desire to follow our prospects all the way to production in the terms of moving forward and helping operators. That is what our focus has been for the last 30 years; generate oil and gas drilling projects, market them to the industry and then stay involved with details such as well planning, execution, evaluation and recommendation on completing a successful well.

How have low crude prices affected your work as a geologist?

Well, probably the same as in the rest of the industry. Having been in the business a long time we have the benefit of general stability in our specific business world. But in general, we do see a reduced cash flow into the business.

If you want to continue to drill wells in this environment, you have to get a feel that the cost to do so is commensurate with the price of the commodity. In the free fall pricing environment that we have experienced, nobody’s really been willing to reach up and grab that “falling knife”, as it’s been described-whether it is buying equities in the oil and gas industry or putting deals together or hiring third party services.

Everyone is still trying to correct and to understand if we are at the bottom or not. So generally I think it has slowed the business down and those companies that don’t have debt service and adequate cash flow behind what is required to run their business, they can get into a slower mode of doing business. That’s kinda where we are; kind of a breathing room.

There is time to take a breath, stand back and look at what you have done over the last several years. And if you want to drill new wells, those wells have to be commensurate with the current price. So we are focusing on taking working interest in other people’s deals but also in our generating mode looking at conventional wells, vertical wells and/or horizontal wells that don’t require hydraulic fracturing, because that is a major expense. Or vertical wells that don’t require big completion costs like occur when you hydraulically crack a well. So there are a lot of plays in the $40-50 range where we can play.

It does cause a re-step back and a slow down and a re-think. We are probably just going to try to continue doing business just as we have with those modifications until we get a feel for where the bottom is and then the service companies will have to adjust their pricing, particularly all of the services that are required for fracking. Halliburton, Baker Hughes, Schlumberger, all these companies that provide a lot of services on the completion side, will have to correct pricing if they wanna keep busy. And that takes a little while for them to adjust, but they will.

“Pretty much business as usual at a slower pace and a slight alteration in the targets. But in the short term, we will probably hold off where we’ve been involved for awhile and that is Eagle Ford, that require fracking. Now we may participate in some wells that get drilled and hold off on the fracking part until the wells are completed, that is stable, with pipe in the ground but not producing until fracking companies adjust their price to the current market.”

— Mr Light

You said you have been through this before? Historically, are there any good things that come out of these downturns?

Lots of them. For one thing, it does help everyone to adjust; it forces the service companies to adjust their prices and forces operators to become more efficient in their drilling and recovery methods. So horizontal drilling and fracking are an efficient way to recover light carbons that are more difficult, but even with that spectrum there are things you can do to increase the efficiency of recovering and lower the cost and recover hydrocarbons.

Also, we have been in a frenzy in the Eagle Ford since about 2009. First it was land grab and then it was the intensity of the activity which drove the service company prices up. We’ll get an adjustment downward in pricing, it will give people and operators and geologists like me time to sit back and think about what they have done over the last few years and if they can improve their methods and monitor their existing production. During the frenzy of hitting wells, getting the first wells drilled on a lot of these leases.

That is a fantastic question because it flips it around from a negative to what are the positive things that will come out of this. It will force us as an industry to become more efficient in everything that we do and try to think of new ways. There will be new technology that will come out of this downturn because people want to think of how to do it cheaper, quicker, better and less costly.

For more information about Thunder Exploration, email wthunderx at aol.com

Spoolable Composite Pipes - Are all Created Equally?

Spoolable Composite Pipe on Truck

As recently as seven to ten years ago, usage of high pressure reinforced spoolable composite pipe was still in the early adoption stage in North American oil and gas service. Since then, the technology has gained significant acceptance and has displaced a growing portion of steel pipe usage in high pressure applications. These applications include flowlines, gathering lines, produced water lines, water and CO2 injection lines, saltwater disposal lines, and frack water management lines – all of which can be highly corrosive. There are at least five manufacturers of spoolable composite pipe who are active in North America. The purpose of this paper is to identify the value brought by spoolable composite pipe, the various types of technology in the market today, and issues that should be considered by an end-user specifying engineer. When properly applied and installed, reinforced spoolable composite pipe can provide many years of safe, reliable, and maintenance-free operation.

The Value Proposition

Usually reinforced spoolable pipe is first tried by the user to solve a corrosion problem. Because the pipe is non-metallic, solving corrosion issues is a key benefit. However, once users see how fast and easy the pipe is installed, they often then select the pipe for economic reasons. The benefits of using spoolable composite pipe also include:

• Low installed costs and fast completion of projects.
• Very safe because of small installation crews and less equipment on the Right-of-Way.
• Low environmental footprint, again due to less equipment and activity on the ROW.
• Low ownership costs, Elimination of expensive corrosion inhibitor chemical programs.
• No welding, no x-rays, no cathodic protection.
• Increased cash flow because production comes on quicker.
• Able to handle high pressure and temperatures.
• Light weight, low freight costs, easy to handle in the field.
• Compliant with industry standards
• Proven materials

The Technology

There are usually three materials used in the manufacture of spoolable composite pipe. The inner liner is usually made of High Density Polyethylene (HDPE), a material that is corrosion resistant and has many decades of successful experience in low pressure oil and gas service. But HDPE by itself is pressure and temperature limited. Because of its low friction characteristics, HDPE has a higher flow rate than steel pipe of comparable diameters. For example, often an operator can deploy six inch composite pipe instead of eight inch steel pipe and accomplish flows that can satisfy the project requirements.  The second material employed is used as a reinforcement material that allows the pipe to now handle higher pressures. The liner travels through a series of winders where the reinforcement wrap is applied at very specific angles. Depending on the pipe manufacturer, the reinforcement material could be braided Polyester, or fiberglass strands, or various types of steel bands and cords. Other reinforcement materials could include carbon fibers and Kevlar® aramid fibers, again, depending on the manufacturer. Some manufacturers wind these various fibers in a dry (or unbonded) process and others use an epoxy to bond the fibers. Either approach has its own merits and should be understood prior to making a purchase decision. The third and final pipe material that is utilized is an extruded HDPE (or other plastic) layer that is used as a protective outer jacket to protect the pipe during installation. Pictured here is one manufacturer’s design, SoluForce®RLP, that depicts a pipe cutaway showing the HDPE liner on the right, the Polyester braided reinforcement wrap in the middle, and the extruded HDPE jacket on the left. All of these materials are fully compatible with the chemistry seen in oil and gas production.

Electrofusion Non-Metallic Coupling and Stainless Steel Coupling Comparison

Connecting multiple reels of pipe is accomplished by using couplings made of coated carbon steel, stainless steel, and now a totally non-metallic electrofusion coupling has been developed. Pipe terminations are done by installing weldneck or flange fittings, again made of a variety of corrosion-resistant materials. Steel risers can be welded directly to the weldneck fitting if the user wishes to bring steel pipe to the surface. All these fittings are typically installed in the field and most manufacturers provide field service training for the users chosen contractor. The fittings design varies from manufacturer to manufacturer but some utilize a fitting installation process that is pressed in to and then crimped on to the pipe – very similar to a hydraulic hose type of connection.

The pipe is fully tested at the plant prior to shipment. Typically a section of pipe is pressured to a burst point that is several times higher than its rated design. The ratings are developed by following stringent industry standards that require extensive long-term testing at high pressure and high temperatures. Other tests include cyclic performance where continuous and constant pressure amplitudes are exerted on the pipe. Axial and circumferential strengths are developed through design and testing of various reinforcement materials and various winding angles of the reinforcement material. Long lengths of pipe are shipped on reels that are then deployed in a variety of installation methods including open trench, surface lines, and plowing. Line crossings are easily accomplished by dragging the pipe under the line that crosses the installation trench. Road and creek crossings are easily done by pulling the pipe through the crossing bore. Diameters available range from two inch through eight inch and pressure ratings can be more than 2000psi. A variety of other fittings and accessories are available including T’s and Y’s, threaded terminations, tracer wire, etc. Because of its flexibility, elbows are usually unnecessary. Because of the durability of the outer jacket, padding the trench is usually not necessary. Spoolable pipe can be pigged and hot-oiled if warranted. However, this is usually unnecessary due to the smooth HDPE inner wall.

Project Discussion

It is important that the project engineer and the spoolable pipe manufacturer collaborate during the project design phase. Field personnel should also be included so that all aspects of the project are understood before the project kicks off. The overall project goals should be discussed as well as:

• Design and operating pressures and temperatures – now and in the future
• Project location, construction methods, and terrain
• A map showing the pipe routing including lateral connection points
• Chemistry of the fluid or gas in the pipe
• Operating conditions including pump types
• Project timing
• All aspects of User expectations

There are many sub-categories and topics to the above points and they are not intended to be discussed here. The project team should choose a spoolable pipe manufacturer who can be more than just a vendor and one that can knowledgeably discuss these technical sub-categories. They can be a real resource to the project team and, through the course of the overall project discussion, can often recommend ideas to assure the project is completed safely, on time, and on budget.

High pressure reinforced spoolable composite pipe should be considered when pressures and temperatures exceed the limits of other low pressure pipe materials. If the project utilizes diameters in the two through eight inch range then it should be considered as a good alternative to steel pipe. Once the project hydrotest is successfully completed, the operator can be assured of safe and reliable operation throughout the project’s design lifetime. 

Eagle Ford Roads Impacted by Higher Traffic & Inadequate Funding - Tunstall

I-37 Gravel Road Frontage in Live Oak County - TxDOT

Roads in the Eagle Ford Shale are under intense pressure from the huge volumes of truck traffic that are regularly running up and down South Texas highways – literally hundreds of trips per day in many cases.

The traffic highlights a disconnect in the Texas political economy between how tax revenues are generated and how roads are then funded. With TxDOT’s recent announcement that approximately 83 miles of FM roads have been slated to be returned to gravel (66 miles of them in the Eagle Ford area), it’s worthwhile to examine road funding mechanisms in Texas.

How Is Road Construction Funded?

Let’s start with the state gas tax that we pay at the pump, which is a total of 38.4 cents. Immediately, 18.4 cents goes directly to the federal government, which leaves 20 cents for state use. However, 5 cents of that goes to public education. Only the remaining 15 cents is used to fund TXDOT projects directly. Texas motor vehicle fuel sales taxes are flat taxes that have not been raised since 1991 and are not adjusted for inflation.

The unprecedented activity on the roads in the Eagle Ford Shale area is having an impact that is overwhelming traditional highway funding sources. As an example, it takes nearly 1200 truck trips (equivalent to 8 million cars) to complete a single oil or gas well. Another 350 or so are estimated to be required for annual production.

So, what about other potential funding sources for roads?

[ic-r]Let’s look at sales taxes in Texas, which have a statutory maximum rate of 8.25%. Of that total, 6.25% goes to the state. Cities, counties, transportation authorities and economic development corporations can add up to an additional 2% to their sales tax rates. Some counties charge no sales tax, such as McMullen County, so the maximum rate there is 6.25%. Since city and county sales taxes in the Eagle Ford Shale area have increased significantly starting around 2010, it might seem to make sense for these entities to pick up the tab for increased road wear. In some cases, for example, county tax increases jumped between 300-500 percent in a single year. While this sounds like a lot of money, it pales in comparison to the cost of building roads.

In round numbers, county roads typically cost around $250,000 per mile to build. Farm-to-Market and Farm-to-Ranch (FM) roads cost twice that – about $500,000 per mile. State highway grade roads cost in excess of $1 million per mile. When county and FM roads are repaired to their current standard, the cost can be less – “only” $120,000 per mile – but heavy volumes of truck traffic can tear them back up in less than a year.

Karnes County Example

One of the most active counties in terms of Eagle Ford production is Karnes County. In 2010, county sales tax receipts were $837,038. By 2012 that number had risen to $7,961,495 – a huge increase by any measure. And yet, if every dollar of increased county sales tax revenue were applied to roads in the area, Karnes County would be able to build about 28 miles of county roads, 14 miles of FM-grade road, or only 7 miles of state highway-grade road. Clearly the orders of magnitude for the road impact as a result of oil and gas exploration and production activity is beyond the scope of county budgets.

One the most significant source of potential revenue for roads and perhaps the most applicable is the state’s severance taxes, which are imposed for the extraction of non-renewable natural resources, such as oil and gas. These taxes are on the rise because Texas is producing more oil than it has in over 30 years. In fiscal year 2013, Texas collected $4.5 billion in severance taxes. Overall, about $2.5 billion will go into the Rainy Day Fund (more formally known as the Economic Stabilization Fund) – most of that the result of increased severance tax receipts.

In fact, some of these severance taxes are being channeled to road projects. During the most recent legislative session, $1.2 billion per year was allocated from the Rainy Day Fund for roads across the state (pending approval by voters in November 2014). In addition, a one-time infusion of $225 million was allocated for road systems in South and West Texas areas affected by oil and gas production. And just this month, TxDOT announced that it had identified another $250 million from vehicle registration fees.

However, plans remain in place to convert the 83 miles of formerly paved FM roads to gravel in order to save money. TxDOT has held public hearings to address community concerns, but the larger issue has yet to be addressed. It is becoming clear that several aspects related to the costs of shale oil and gas production (roads in particular) will not necessarily be remedied by current tax revenue mechanisms. As such, any chance for a more permanent solution will be up to the Texas Legislature, which does not convene again until 2015.

DON’T LOSE IT! - Medical Certification Required for CDL Drivers

Tanker Truck on the Highway

Effective January 30, 2015, all drivers with a commercial driver’s license (CDL) must have a current medical certification registered with the Texas Driver’s License Agency, Department of Motor Vehicles Division. That includes oilfield drivers working in the Eagle Ford Shale.

Original Deadline was January 30, 2014, and that has been extended to January 30, 2015

Download the Texas CDL Self-Certification Affidavit HERE

All CDL holders must provide information to their state driver’s license agency (SDLA) regarding the type of commercial motor vehicle operation they drive in or expect to drive in with their CDL. Drivers operating in certain types of commerce will be required to submit a current medical examiner’s certificate to their SDLA to obtain a “certified” medical status as part of their driving record. CDL holders required to have a ”certified” medical status who fail to provide and keep up-to-date their medical examiner’s certificate with their SDLA will become ”not-certified” and they may lose their CDL.

It is the drivers’ responsibility to keep their medical certification up to date. Drivers who do not submit a medical certification prior to it expiring will find that their CDL license will be downgraded to a non CDL license. They’ll lose their commercial motor vehicle operation privileges. In order to regain the CDL a driver will have to complete all written and skills tests all over again.

While registering the certificate is the responsibility of the individual driver, employers have a stake in the matter. They stand to lose valuable drivers who fail to comply with the regulation. So it’s in the employers’ interest to inform their drivers of the requirement. Follow up and make sure all commercial motor vehicle drivers have taken steps to keep their CDL in force.

Each state is handling the matter of medical certificates differently. For specific state-by-state requirements for drivers and information related to how a state is handling the Medical Certification requirements, and to determine whom to contact for additional information, click on the following link: http://www.aamva.org/aamva/DocumentDisplay.aspx?id={687D99D3-FFB5-4B76-BD6F-F5EF54728BE0

A Case Study

John Rojas, Education Specialist for Mike Byrnes and Assoc., Inc., relates his experience:

I personally renewed my CDL license at the local DMV in Corpus Christi. Fortunately I scheduled my visit perfectly because I was in and out of there in about 30 minutes. I had to complete a self-certification affidavit (CDL-7 form). The form is pretty simple to fill out and all you have to do is check what type commerce you operate in. This form will determine your eligibility to operate a commercial vehicle with or without a current medical certificate.

Since I renewed my license at my local DMV they relayed my information to the enforcement and compliance service for me.

How Eagle Ford Drivers Can Self-Certify

Self-certify by completing a CDL-7 form. You can do this via the Internet. Go to www.dps.texas.gov/driverlicense. Complete the form online and save it in PDF format. Then email that PDF to [email protected].

Need help deciding the type of commerce in which you plan to operate? Read the information for DOT medical certification requirements that you’ll find at http://www.txdps.state.tx.us/DriverLicense/medCertReq.htm .

You can also print out the CDL-7 form and mail it to:

Texas Department of Public Safety Enforcement and Compliance Service

Attn: CDL Section P.O. Box 4087 Austin, TX 78773-0320 Or you can fax it to 512-424-2002.

Depending on what type of commercial driving you do you may also need to get a medical examiner’s certificate. (All but one of the four Categories require one.) If your driver’s license is current but you have not submitted a copy of your current medical card to the enforcement and compliance service you can submit it yourself. Send a copy of your medical card by mail or fax, or email it. Note that documents submitted by email must be in PDF format, so you may need to scan that medical certificate and save it as a PDF.