(Magazine) Oil and Gas Petrochem Equipment 11 2014
(Magazine) Oil and Gas Petrochem Equipment 11 2014
(Magazine) Oil and Gas Petrochem Equipment 11 2014
2014
VOLUME
OGPE.COM
61,
NUMBER
OIL, GAS
&petrochemequipment
WHATS
NEW
FOR
ONSHORE
&
OFFSHORE:
UPSTREAM,
MIDSTREAM,
DOWNSTREAM
OPERATIONS
Whats New In
IR sensors condition-base-monitor
petrochemical combustion vessels
NOVEMBER
OG&PE
SPECIALS
In this issue:
PennWell Pipeline Week Highlights: Page 20-21
CO2 compression solutions: Page 12
Natural gas acid gas, mercaptan removal modeling: Page 16
Free OG&PE magazine & eNL subscriptions: www.ogpe.com/subscribe
GE
Measurement & Control
Defects
have
nowhere
to hide.
Introducing Mentor Visual iQTM.
GEs newest handheld VideoProbe is designed
to help inspectors see indications from every angle.
With a 6.5-inch touchscreen XGA color display,
customizable proles and 3D Phase Measurement,
inspections are faster and more precise. Plus Wi-Fi
connectivity will allow for remote collaboration
with experts. With Mentor, youll be ready to make
smarter decisions.
Learn more about how GE is changing
the inspection landscape.
mentorvisualiQ.com
LIGHT
WORK
OF LIGHT HYDROCARBONS
SERVOTOUGH
SpectraScan 2400
A proven alternative to
GC gas analysis for light
HC applications.
APPLICATIONS INCLUDE:
Revolutionizing measurement
speed, the SpectraScan gives
breakthrough real-time readings
for light hydrocarbons C1-C5
OGPE.com
servomex.com/spectrascan
November 2014
OGPE.com
FROM
THE
EDITOR
Oil, Gas & Petrochem Equipment (ISSN 0030-1353) is published 10 times a year, January/February, March, April, May, June, July/August, September, October,
November, December by the Petroleum Group of PennWell, Tulsa OK 74101.
Copyright 2014 by PennWell Corporation. Periodicals Postage Paid at Tulsa, Oklahoma, and additional mailing offices.
Printed in the U.S.A. Publications Mail Agreement No. 991988. GSA No. 126813153.
Established: November 1954.
PENNWELL CORPORATION
S O L E N O I D VA LV E S F O R A DVA N C E D A P P L I CAT I O N S
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President & CEO
Vice President
Frank T. Lauinger
Robert F. Biolchini
June Griffin
Italy
Filippo Silvera
Tel. 39 02 28 46716
[email protected]
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Jean-Paul Prates
55-21 2533 5703
[email protected]
France, Spain, Portugal, Belgium
and Southern Switzerland
Daniel Bernard
33 (0) 1 30 71 11 19
[email protected]
Tokyo
Manami Konishi
81 3 5771 8886
[email protected]
AD I NDE X
Akron Electric
AMETEK
AMISTCO
Clark Cooper, Magnatrol Valve
Clover Tool
Drager
GE Inspection Technologies
NOVE MBE R 20 14
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New York Blower
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Oil, Gas & Petrochem Equipment makes every reasonable effort to verify
its content. However, neither Oil, Gas & Petrochem Equipment nor our
parent firm, PennWell Corporation, assume responsibility for validity of
manufacturer claims or statements made in published items.
Member: BPA Worldwide, American Business Media
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Select #410
Select #407
The new AMETEK Chandler Engineering Model 292B portable natural gas chromatograph is compact and light weight, yet includes fully integrated sample handling and
onboard storage for up to 1,000 sample runs. A 5" full-color display shows sample
results, raw data, calibration data, analysis reports and real-time chromatograms. The
292Bs advanced software will accurately calculate heating value, relative density,
and compressibility using industry standard methods. Integrated optimization functions allow for precise monitoring and control of the analytical system, resulting in
exceptional sensitivity and peak performance. Connectivity includes USB and Ethernet
ports and compatibility with HP printers. AMETEK Chandler Engineering. Tel: 412-8289040. Fax: 412-826-0399. www.ametekpi.com
The Grabner MINIVAP ON-LINE vapor pressure process analyzer monitors vapor pressure of gasoline, crude oil, and liquefied or natural petroleum gasall automatically. It
is the only vapor pressure analyzer to fully comply with all relevant ASTM and US EPA
specifications: ASTM D6378/D5191/D5188 for gasoline; ASTM D6897 for LPG; and
ASTM D6377 and EPA Title 40 CFR for the measurement of crude oil. The ATEX certified MINIVAP ON-LINE analyzer can handle up to two different sample streams, both
controlled by an automatic sample conditioning system. Data is output via standard
MODBUS digital signal or standard 4-20mA analog signal. Fully automatic calibration
using neo-hexane or other standard liquids can be started manually or run automatically in programmable intervals. The MINIVAP ON-LINE offers a temperature range of
2060C (68140F) and a pressure range of 21000.0 kPa (0.3150.00 psi), 7minute cycle time and an explosionproof Class I housing. AMETEK Grabner Instruments.
Tel: +43 1 282 16 27-0. www.grabner-instruments.com
Select #414
Select #408
Verify the quality of your feedstocks, intermediates, final products and more. New
IPS-4 spectrophotometer detects and quantifies thousands of chemical species, up
to eight at once. Housing is IP-65 compliant, lamp has 2 year life, unit requires no
annual maintenance. The IPS-4 includes 22-key keypad, analog output, 3 digital signal ports, Ethernet port, plug-and-play/web-based queries, alarm contacts, RS232
and RS485 ports. Multilingual interface includes English, French, German, Russian
and Spanish. Available in UV/Vis and NIR versions with fully integrated sampling systems, AMETEKs entire family of spectrophotometer-based analyzers is proven in
the toughest chemical and petrochemical applications. Tel: 412-828-9040 or visit
our web site. www.ametekpi.com
Select #413
AMETEK U.S. Gauge all-welded process gauge plus integrated seal offers
lower cost than gauge and seal purchased separately. In addition, the
combination unit reduces the number of potential leak paths, increasing field reliability. The rugged Model XR-81 gauge with PET case and Type 316L stainless steel
socket and seamless Bourdon tube is mounted and welded onto an M&G diaphragm
seal, available with either Type 316L stainless or Hastelloy C wetted parts. Offered
in 15 ranges, from 030" Hg vac. to 05000 psi. AMETEK U.S. Gauge. Tel: 215293-4100. www.ametekusg.com
Select #411
Impulse wave-guided radar level systems from AMETEK Drexelbrook generate total
level, distance or volumetric outputs unaffected by variations in process material electrical characteristics. Adding the Wave Guide option eliminates nozzle interference,
making tank nozzle configuration immaterial and negating the need for more expensive coaxial probe systems. Reliable and accurate to 3 mm, Impulse series transmitters provide continuous level measurement of liquids to ranges up to 50 ft. (15 m)
at operating temperatures ranging from 40 to 392F (-40 to 200C) and pressures up to 580 psig (40 bar). Five different sensor types are available, constructed
of Type 316SS or Hastelloy C for Class I, Div 1 hazardous environments requiring
either intrinsically safe or explosionproof installation. AMETEK Drexelbrook. Tel: 800334-2748 or 215-674-1234. www.drexelbrook.com
Using tunable diode laser absorption spectroscopy (TDLAS), this unit offers high
specificity, sensitivity and fast response speeds. The 5100 Portables application-specific gas cells are available in a wide range of pathlengths, and a reference cell for
laser line-lock eliminates measurement errors caused by laser wavelength shifting as
ambient temperature varies. Gas sampling accessories allow customization, the
backlit LCD displays four 20-character lines of data, and a membrane keypad makes
parameter input and display selection easy. The unit weighs only 11 lb., has a battery
life of eight hours, and a USB 2.0 interface. The 5100 is factory calibrated and calibration is NIST traceable. AMETEK Process Instruments. Tel: 412-828-9040.
www.ametekpi.com
Select #415
Select #412
Select #409
The Model 3050 OLV Moisture Analyzer lets you confirm analyzer performance at
any time, right in your process. Theres never a need to return probes for re-calibration, or to stock extra probes to keep your process running. Offering quartz-crystal
accuracy at a price thats competitive with any process moisture analyzer on the
market, the Model 3050 OLV is factory-calibrated over the range of 0.1 to 2500
ppmv. And, unlike most moisture analyzers, this one responds quickly to increasing
or decreasing moisture levels, so problems are caught in real time. AMETEK Process
Instruments. Tel: 412-828-9040. www.ametekpi.com
This combustion analyzer measures not only excess oxygen in flue gas, but also
combustibles and hydrocarbons to give you the ability to improve burner efficiency
and operating safety. The analyzer also logs historical operating data to help operators decide when preventive maintenance is needed, and when it is not needed,
which can significantly reduce operating costs. Specifically designed for wet, dirty
gas applications, probes are available at lengths up to 108" (274cm) at temperatures to 1875F (1024C), and to 72" (152cm) for temperatures up to 3000F
(1760C). The WDG-V also features automatic calibration, analog outputs, multiple
alarms, self-diagnostics, local or remote interface and a variety of network communications protocols. AMETEK Thermox. Tel: 412-828-9040. Fax: 412-826-0399
www.ametekpi.com
www.ametek.com
EziTite Hydraulic Nuts are a new generation of bolt fastening technology. They simultaneously tighten in groups of four to
enhance precision, speed, and safety plus to
cut load scatter.
Theyre designed to serve conventional
and nuclear generators as well as rotating,
vibrating, turbine, heat exchanger, and mineral processing equipment.
There they tension all of the studs on a flange, joint, or cover simultaneously loading entire groups of fasteners at once, declares the maker.
Simultaneous tension delivers very accurate and even load onto a flange/
joint for long-term safety, security, and reliability.
Technofast Industries Pty. Ltd: Richlands Qld Australia
November 2014
MIL-901XP cooling fans are on the market for use in explosive indoor or outdoor
environments.
They meet UL, NEC, and ANSI standards for equipment that will not create
an ignition source and are designed for
installations where sufficient concentrations of flammable gases, vapors, or dust
are present. These include cabinet cooling, heat exchanging, or air exchanging
for equipment employed in oil, gas, or
chemical operations
With a rated life in excess of 200,000-hr,
MIL-901XPs are declared by their manufacturer to provide the reliability needed
to assure continuous operation in critical
situations.
Cooling fan construction features include thermal protection, advanced composite propeller material, and permanently lubricated stainless steel ball bearings.
Ambient operating temperature range
is -54 TO +70C.
AMETEK Rotron: Woodstock NY
Frac products,
services info
Hose,
coupling,
sealing, conveyor
belting, and valve
products plus services for hydraulic
fracturing are presented in this free
brochure.
Also offered is 24/7 on-site diagnostic and preventive service,
and local emergency response.
Brochure sections illustrate and
describe a broad inventory of
products for sand, water transfer,
chemical additive, or blending, as
well as pump trucks.
A broad range of Goodall hose
is specified and described along
with valves, gaskets, manifolds,
wear sleeves, flanges/pipe fittings, compressors, and pumps.
An on-site fracing photograph
offers call-outs on where various
products and services are used.
Lewis-Goetz: Pittsburgh PA
Oilfield water
intelligence,
management
Water Asset Intelligence platform provides oil and gas companies complete visibility into the
oilfield water landscape to help
optimize water logistics.
The software is offered to reduce water costs and consumption. It comprises a database of
over 70-million observations relating to water production, water
consumption, water sources, and
saltwater disposal assets.
The platforms developer is applying proprietary machine learning algorithms to the datasets to
accurately predict produced water, water requirements for well
completions, and utilization of
disposal well assets to optimize water transportation logistics.
The software will give upstream
companies better information to
make important decisions as operators and service companies
find opportunities to save money
and more efficiently use water.
Additional details are free.
Digital H2O: Chicago IL
Nothing beats the reliability of fans and blowers from The New York
Blower Company. For the past 125 years, weve been manufacturing
products that perform time and time again. Plus, we carry one of the
most complete lines of fans and blowers in the industry. But thats not
all. We also custom engineer solutions, provide shipping reliability
you can count on, and back it up with an industry leading warranty.
And with our very own Research Center and AMCA-registered
laboratory*, were poised to lead the way for years to come.
For product details or custom solutions
visit nyb.com or call 800.208.7918.
* Product performance data based on tests in an AMCA Accredited Laboratory are not to be construed as being licensed to bear the AMCA Seal.
December: NATURAL GAS drilling, fracing, prooduction, pipeline, process equipment & services
January 2015: Health, Safety, Security, Environment products & services
November 2014
OGPE.com
products
New
Products & Services
November 2014
Up/Mid/Downstream
data management
OmniSight data management platform is newly introduced for oil and
gas companies developing upstream,
midstream, and downstream projects.
The unified software links data
from the office and field in real time
for quick decision making, safety,
and to avoid costly delays.
OmniSight data integration and
delivery is incorporated into this
companys services that provide oil
and gas companies Web-based tools
to access and maintain data in real
time. It bridges the gap between office and field plus combines into one
spot client data, vendor data, 3rd
party data, and numerous other information.
The platform has capability to
support many full project life cycles
including environmental and permitting or routing/drill site evaluation.
CH2M HILL: Englewood CO
Managed Ethernet
switches line out
New managed Ethernet switches deliver precise time
synchronization
of
networks in real-time
control applications.
Announced as tailor-made to unlock
automation network
convergence for demanding industrial
applications, are EDS-405A-PTP
five-port. It features IEEE 1588v2
Precision Time Protocol hardware
time stamping. This ensures precise
time synchronization of networks
running its manufacturers Turbo
Ring and Turbo Chain topologies
both of which offer less than 20 ms
recovery in networks with up to 250
switches.
The entire new managed Ethernet
switches product line supports Modbus TCP, PROFINET RT, and EtherNet/IP for best SCADA integration.
MOXA: Brea CA
Want Free Information or Literature? Click The Link Make Your Requests
November 2014
OGPE.com
10
products
New
Products & Services
www.amacs.com
AMACS 24-7 Emergency Service Available at (281) 716 - 1179
2013 Amacs Process Towers Internals. All Rights Reserved.
FROM FEEDSTOCK
TO END PRODUCT
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RANDOM PACKING
STRUCTURED PACKING
LIQUID DISTRIBUTORS
INLET DIFFUSERS
TRAYS
#
%!
OGPE.com
November 2014
HIGH PRESSURE
TRIPLEX PUMPS
phone:
email:
web:
address:
11
281.561.5600 fax:281.561.5672
[email protected]
www.clovertool.com
6903 FM 359 South, Fulshear, TX 77441
PNEUMATIC BOLT
AND NUT RUNNERS
AND TORQUE WRENCHES
HYDRAULIC FILTER
CARTS
STANDARD SERIES
CLOVER PNEUMATIC
NUTRUNNER
TRAILER-MOUNTED
HYDROSTATIC TEST UNIT
(patent pending)
November 2014
OGPE.com
12
Sustainable solutions
for CO2 compression
Man-made CO2 has raised the level of atmospheric CO2 significantly beyond historic levels. The scientific community notes a direct correlation
between atmospheric concentrations of CO2 and other greenhouse gases,
and increasing average global temperatures.
The challenge now is to ensure reliable, sustainable and economic
power supply to match the worlds growing energy demand whilst keeping greenhouse gases within the acceptable level, knowing that for decades to come fossil fuels will continue to play an important role. Highefficiency, fossil-fuelled power plants fitted with CO2 capture and storage
(CCS) technology offer a short to mid-term solution to achieve low-CO2
electricity supply. Among others this is possible with CCS-technologies
like Pre-Combustion Capture or Post-Combustion Capture. Siemens is
therefore continuing to invest in research and development for compressors suitable for the CCS market and other CO2 applications.
Siemens has more than 30
references in operation worldwide for compressors in CO2
applications. These compressors are currently handling
flows (the suction flow of CO2
at the first stage) ranging from
about 12,000 m3/h up to just
over 83 000 m/h. In 2009, Siemens delivered CO2 compressors with a volume flow rate of
83,000 m/h and five coal gasifiers, each with a thermal power rating of 500 MW, for a coal
liquefaction plant in Yinchuan,
Ningxia Province, which lies
in the north-western part of
the Peoples Republic of China.
The end customer is Shenhua
Ningxia Coal Industry Group
Co. Ltd. (SNCG), a subsidiary of
the Shenhua Group, the largest
coal producer in China.
In 2011 Siemens received
further orders for CO2 compression. Two compressors
operating at 150 bar and flow
of 63,000 m/h will start operation at the Kemper County
IGCC plant in the Mississippi. Here the two 8-stage compressor trains
feeding around 220 metric tons of high density CO2 and transport the
CO2 via a pipeline to the Gulf Coast for injection into offshore oil wells
in the Gulf of Mexico for EOR.
Pressure ranges from 1.8 bar up to nearly 157 bar. The highest pressure
OGPE.com
November 2014
150-page environmental
monitoring catalog is free
Free New Horizons in Environmental Monitoring Catalog offers 150 pages on related products.
Its six sections are easy indexed for search, economical choices, popular models and accessories
reference.
Temperature products include data loggers,
sensors, M12 connectors, thermal imagers, controllers, and meters. Heaters are featured to include high-density cartridge, screw plug immersion, as well as OMEGALUX C heavy-duty cartridge designs.
Flow level, pH, conductivity and laboratory analyzers, test and measurement, flow meters, transmitters, valves and sensors are presented.
Pressure specialties include sensors and gauges like DPG409 digital pressure designs. Data acquisition highlights recorders and systems
while Automation showcases accessories, enclosures, drives, motors.
OMEGA Engineering: Stamford CT
13
OGPE.com
Now available in North America: Enviroline 2405 advanced hybrid epoxy lining
system for oil and gas equipment and uses.
The high-temperature, abrasion-resistant
coating is announced to deliver exceptional flexibility, durability, and protection in a
single coat.
Its formulated as an ultra-high solids, low
volatile organic compound 0.37 lb/gal, two-component polycyclaminecured epoxy. It is for fast, easy installation in oil and gas, chemical, water,
and wastewater environments.
The heavy-duty lining system is especially applicable for use in process
vessels and tanks operating at up to 302F. It can resist continuous immersion in a range of chemicals, including crude oil up to 176F.
With a simple 2:1 mix ratio that helps eliminate mixing errors and
unnecessary materials waste Enviroline 2405 is flexible for use in
such applications as crude and petroleum bulk storage tanks, downhole
tubulars, downhole casing exteriors, interior and exterior pipe, floors,
trenches, tank pads, troughs, sumps and pits, free water knockouts, treaters, and separators. Applied with standard airless or plural component
spray equipment, Enviroline 2405 provides rapid hard cure in 6 hr, with
a return to service in about 48 hr.
Complete hybrid epoxy lining systems specifics are yours free.
AkzoNobel: Houston TX
Want Free Information or Literature Click The Link Make Your Requests
November 2014
OGPE.com
PRESENTED BY:
Remote oil and gas construction site security monitoring is achieved with Eye Trax
Ranger Cameras.
The cellular-based surveillance designs
are light weight for easily installation without a professional. They are indefinitely
powered by a solar panel with motion-sensing and night-vision.
Ranger is controlled by a web-based user interface or mobile phone
application. It incorporates all traditional camera features including timelapse video.
The cameras use of available cellular network enables picture transmission yet eliminates the need for the infrastructure of a computer,
phone line, internet connection, router, and power of traditional wireless cameras.
Eye Trax: Charlotte NC
15
Want Free Information or Literature Click The Link Make Your Requests
November 2014
OGPE.com
16
products
The
Dow Chemical Company Simulation Modeling Profile:
OGPE.com
November 2014
Conductor cementing
support saves rig time
17
November 2014
OGPE.com
18
products
Peel-stick aluminum
ceramic non skid
Want Free Information or Literature Click The Link Make Your Requests
OGPE.com
November 2014
Explosionproof, multi-purpose
Modbus scanners
19
OGPE.com
November 2014
OGPE.com
20
Upstream, midstream,
surveying capabilities
Three free datasheets are
offered to showcase upstream and midstream
capabilities as well as
oil and gas surveying,
mapping and GIS offerings.
Among midstream services are those for asset
management, design and
construction, plus planning and routing. These
range from land agent and environmental services through design-build.
Upstream-applicable land services, engineering, and GIS/asset management are likewise
offered and presented in a second datasheet.
To afford safe, efficient, and productive operations are accurate surveying, mapping, and
GIS asset management systems. This company
cites itself as one of the largest surveying firms
and a leader in geospatial services.
Its personnel, resources, and technologies
combine traditional surveying expertise with
aerial 2D photogrammetry and 3D light detection and ranging (LiDAR) data collection methods. These offer enhanced visibility to initiate
new exploration and improve safety of existing
pipeline corridors.
Woolpert: Cincinnati OH
November 2014
Pipeline intelligence
software datasheet
Pipeline assets,
networks management
Smallworld
Global
Transmission
Office
(GTO) provides you a
fit-for-purpose pipeline
data model, a set of
geospatial business applications, plus integrity
management and analysis tools. Subject of this
free brochure, its cited
as designed to integrate
with existing operators business processes.
As a pre-configured and pre-integrated spatial solution, GTO is sustainable for operators
and a proven scalable solution that supports
small to very large operators with large geographic territories.
GE Digital Energy: Greenwood Village CO
Uptime is presented in
this free brochure for
onshore and offshore
oil and gas pipelines
and gas distribution
networks.
Its cited as an integral part of the Asset
Integrity Management
Suite. Uptime is highly
configurable to provide
pipeline operators and
gas utilities improved asset reliability, reduced
major accident risk, and to help manage regulatory requirements under diverse performance
and regulatory pressure.
GL Noble Denton Incorporated:
Mechanicsburg PA
Technical
surveying data
A variety of technical surveying services are concisely presented and shown
in this free pamphlet.
LIDAR aerial services are
explained for scanning and
ranging laser systems for
pinpoint-accurate, high-resolution topgraphic maps.
The firm also offers the
latest Trimble technologies
for land surveying and geomatics as well as in-house capability to collect
geo-referenced aerial imagery and ground data
with centimeter horizontal/vertical accuracies.
Bearing Tree Land Surveying:
Oklahoma City OK
21
Onshore, offshore,
subsea tools & services
Individual tools and
tool systems, technology, and services for
conventional
drilling,
fishing and workover
are presented in this free
brochure.
Equipment and service
support are offered for
coil tubing, critical high
pressure snubbing, well
control support, frac
flowback and well testing, special wellhead
intervention and remedial services, platform
abandonment, and slot recovery. Rental, fishing, and freeze services are also highlighted.
BTI Services: Lafayette LA
Maintenance, repair,
installation management
WennSoft Signature solution manages oil and
gas installation, maintenance, and repair processes. Its highlighted in
this free brochure.
Signature avoids the
limited or lacking backend accounting functionality of other solutions.
It is industry-tailored
and backed by a world-class financial management and customer relationship management
system, all based on Microsoft technology. This
suits the software for in-field or in-office uses.
WennSoft: New Berlin WI
November 2014
OGPE.com
22
Comfortable FR workwear
VideoProbe Mentor Visual iQ is newly introduced to give you faster, more accurate inspections via real-time connectivity, intuitive
touchscreen, customizable profile setups, and
3D Phase Measurement.
With more intelligence built into this innovative VideoProbe, your inspections are not only
productive, but your inspections are smarter.
Armed with this NDT visual inspection tool,
you harness the Internet to real-time-connect
with experts from the field. Learn more about
how GE is changing the inspection landscape.
GE Measurement and Control:
Skaneateles NY mentorvisualiQ.com
Count on HiPs proven valves, fittings, and tubing to handle your oil, gas, and petrochem pressures from 10,000 to 150,000 psi.
For 50+ years HiP continues to deliver quality
dependable products and services to global customers. Complete high-pressure-handling valves,
fittings, and tubing information is free.
High Pressure Equipment Company:
Erie PA HighPressure.com
SKULLERZ Eye Protection gives you the safety spectacle trifecta as an instant triple-threat to
the forces of mayhem and mediocrity.
Norse-god inspired, workplace admired, and
always desired stand on the shoulders of giants and enjoy a safer view. Full eye protection
information is at the website below.
Ergodyne: St. Paul MN Ergodyne.com
November 2014
Light hydrocarbon GC
gas analysis alternative
Make light work of light hydrocarbons with
SERVOTOUGH SpectraScan 2400 a proven alternative to GC gas analysis for light HC
applications.
The new instruments revolutionize measurement speed to give breakthrough real-time
readings for light hydrocarbons C1-C5.
SERVOTOUGH SpectraScan 2400 serves such
applications as boiler BTU feed gas analysis,
ethylene cracking and fractionation, or polyethylene recycle analysis.
SERVOMEX: Houston TX
servomex.com/spectrascan
23
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single issue
published
nearest to
filing date:
10419
9006
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905
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November 2014
OGPE.com
http://www.ogpe.com/apps
WINTER 2014
A Perfect Storm:
Energy Retails
Winter of Discontent
Certification Do You
Get What You Pay For?
TRAINING INSIGHTS:
SPRING 2013
A P E N N W E L L P U B L I C AT I O N
EDITORS LETTER
TRAINING INSIGHTS
13
INDUSTRY INSIGHTS
19 Evidence-Based Management:
a Practical Management Approach
By Eric Scheller
23
ORGANIZATIONAL INSIGHTS
www.PennEnergyJOBS.com
Adver tisers
Index
Chevron C2
PennEnergy Jobs 10
PennEnergy Jobs 12
PennEnergy Research Services 14
PennEnergy Jobs C4
PennWell Corporation
1421 South Sheridan Road
Tulsa, Oklahoma 74112
918 835 3161
PennWell.com
Editor s
Letter
HERE was a
Hilton Price
Cover STORY
N January
31st, Maryland-based
Clean Currents shut its doors
for good.
The renewable energy supplier sent
a minor shockwave through the industry by abruptly announcing it could no
longer serve its 8,000 residential and
business customers. Speaking to journalists about the closure, the company
president said the financials were fine.
None of us suspected that we would be
out of business in a week.
Clean Currents was a casualty of
wholesale price volatility during the Polar Vortex cold snap, which sent temperatures plummeting overnight in early January and massively disrupted life on the
East Coast and Mid-Western states.
Essential infrastructure simply seized
up: flights were cancelled, trains stalled,
schools were closed and white-outs were
common on icy, snow covered highways.
For energy retailers, it was the ultimate
black swan. Already dealing with colder-than-normal fall and winter temperatures, they quickly found themselves in
MICHAEL HINTON is Chief Customer
Officer and Senior Vice President, Products
and Solutions for Allegro Development
Corporation.
a vice-grip of spiking demand, diminished supply and a rapidly degrading operational capability.
PJM Interconnection, the largest US
grid operator, hit a record winter peak use
of 141,500 megawatts just as 20 percent
of its generators went offline due to the
freezing temperatures.
Coal-fired power plants accounted
for roughly half the outages, while diesel generators made up the other half.
There were instances of coal stacks being frozen solid and many diesel generators just wouldnt work in extreme cold.
Pipeline constraints also caused generation problems by driving up natural gas prices east of the Rockies. As the
most popular American heating fuel, utilities relying on gas for generation had to
compete with standard natural gas needs
when the vortex landed.
The wholesale energy market responded accordingly:
PJMs average on-peak power price
jumped from $50 to $278
Henry Hub spot prices spiked from
$3.95 to $8.15 MMBtu
Propane jumped from $2.08 to $4.20 gal.
North Sea Brent Crude spot price averaged $110 bbl for 8 consecutive months
Source: EIA
On the surface, surging demand for electricity should have meant increased revenues and profits for all. But peak power
isnt always preferred. For electricity retailers with customers on fixed-rate contracts, demand and price volatility bring
risks that can obliterate margins.
Overextended electricity systems
can spell disaster. At the depths of
deep freeze, our customer South Carolina utility SCE&G was forced to implement rolling 15-minute blackouts
to manage demand. Many others were
openly calling on customers to turn
down thermostats or even leave the curtains on South-facing windows open so
sunlight could heat their homes. Most
grid operators in the affected states
were compelled to draw on expensive
demand response resources from other
suppliers, putting further upward pressure on wholesale pricing.
Inadequate hedging against such extreme variability in wholesale pricing left
many retailers financially exposed and
scrambling to pay their bills. When it announced its closure, Clean Currents said
spot market prices during the Polar Vortex went up not by 20 or even 50 percent
some jumped by 500 percent. When
Winters of Discontent
Is chaos the new normal? Extreme weather events can
wreak havoc on energy retailers. Black Swan Events
are unanticipated and impossible to plan for
and recent history shows they are
2014
JAN 2014
2010
on the rise.
2011
A second
continent-wide
heatwave
strikes most of
North America
JANUARY 20 04
20 0 0
SPRING 2014
20 09
1990
FEB 10
20 06
A continent-wide heatwave
strikes most of North America
WINTER 1996
JANUARY
JAN 31
Heatwave affects
most of Eastern
North America
SUMMER 1995
20 0 0
Heatwave in the
Southern US
AUGUST 1998
JUNE 1998
JUNE 1998
JAN 06
Hedged Against
the Storm
Extreme weather events are now a fact
of life. How can energy retailers predict
future demand and react quickly when
unforeseen events do happen?
Black Swans
& Blackouts
Unprecedented
Heatwaves
By Mid-century
Heating oil
inventories in
the Northeast
drop by 6.9
million barrels
October - February
Understand history repeats itself and a
long-term view is needed to react in
real-time
SOURCES: BP Energy Outlook 2030, January 2013. The Outlook for Energy, A View to 2040, 2013.
North Sea
Brent Crude
spot price
averages
$110 bbl for
8 consecutive
months
Henry Hub
spot prices
spike from
$3.95 to $8.15
MMBtu
PJM issued its collateral call the company simply couldnt afford to pay.
And Clean Currents wasnt the only
casualty. Virginia-based Dominion Resources abruptly exited the retail electricity market in January, while Illinois retailer FirstEnergySolutions announced
a coming June surcharge of $5 to $15 for
220,000 of its customers, to pay for spikes
in wholesale power costs during the deep
freeze. Its worth noting that New Jerseys
Systrum Energy lost 5,000 customers in
February when it tried a similar move and
passed on higher energy costs to its nonfixed-rate customers.
In the retail energy sector, unexpected weather and a dynamic book of customers means that the science behind insuring supply can meet demand has to be
nimble, sophisticated and reliable. While
grid operators and large utilities tend to
have robust energy trading and risk management (ETRM) tools in place to mitigate the impact of adverse weather, the
winter of 2014 caught many on the retail
side. With disruptive weather events becoming more frequent and intense, retail
providers need to take immediate steps to
prepare for the next one, and soon.
Extreme & unprecedented.
Welcome to the new normal
Extreme weather didnt start with the Polar Vortex. The eastern seaboard has endured a series of harsh winters and extreme
snowstorms from 2009-2011, including the
February 2010 snowmageddon in Washington that shut down the federal government for the better part of a week.
At the other end of the thermometer, storms mixed with high temperature
With a solid analytics component, historical data can then be turned quickly
into load forecasts for expected monthly, long-term, short-term, hourly and even
sub-hourly demand.
Once your ETRM system in place,
measuring usage against past weather parameters like daily minimum and maximum temperatures becomes much easier.
Forecasted demand, actual demand and
hourly weather can be displayed or charted in a single view.
These can then be applied to individual trades. By allowing multiple meters to
be assigned to a single retail power contract point, and including counterparty
information associated with each meter,
multiple meter-level demand forecasts can
be aggregated to form the contract-level
demand forecast for a trade.
Finally, you can run various scenarios
to stress demand versus supply and determine if you are within acceptable risk tolerances if not layer in hedges to offset unwanted risk.
Energy retailers will continue to face
events that force them to change their
hedging strategy. In a market where price
hikes can bankrupt you or send customers
fleeing for their incumbent utilities; and
in a regulatory environment where shaky
financial health could mean having your
operating licence pulled by a state monitoring agency, improving the trading and
risk management capability for energy retailers has become mission critical.
The retail sector needs to prepare
for more once in a generation extreme
weather conditions. The winter of 2014
provides a cautionary tale for all of us, despite the lights somehow staying on.
N looking
the change in the seasons by the fluctuation in NCRs. Welding processes are
sensitive to the environment in which
they are performed in. You can have a
perfect welding procedure, but changes
in humidity will have an adverse effect
on your weld.
One day I was talking to the lead
welding inspector and asked what did
he think was the cause of our problems.
He said that there are some welding
TRAINING
Insights
oil and gas industry is facing a bigger workforce challenge than ever before. The
recent boom has resulted in a widespread labor shortage, the baby boomer generation is near retirement, and
studies have found that the oil and
gas industry is struggling with effective leadership with just one in 20
professionals fitting the profile of an
effective leader today.
The so-called Big Shift Change,
when baby boomers will retire in
droves and leave 500,000 openings
in the oil and gas industry over the
next five years, presents a major risk
for companies as they lose decades of
institutional and industry knowledge.
Compounding the issue further is
the reduced number of students applying for and completing STEM university courses, the complex nature of the
industry, rapid changes in technology and unique safety concerns, which
means that were at a critical point in
time for companies to have robust talent programs to identify and train
high-potential (HiPo) employees.
HE
HiPos are identified by their leadership characteristics, and they are twice
as valuable as their non-HiPo peers
because they save their companies
millions through efficiency, leadership
and longer tenures.
Major U.S. corporations spend
an average of $3 million every year
on leadership and development programs for HiPo employees, often struggle with keeping them with the company -- more than half of will leave
within five years. Our research shows
companies can reduce flight risk and
improve the success of their HiPo pro-
JEAN MARTIN is an executive director and Eugene Burke is the chief scientist and
analytics officer at CEB, the leading member-based research and advisory firm.
way up through the ranks from technical roles. While identifying employees with a record of high performance
is an important step in identifying them
as HiPos, it isnt enough by itself. CEB
research shows that assuming high performance equals high potential puts
the odds at six-to-one that the employee will fail in a development program.
Define potential clearly. While
attributes may vary slightly based on
company culture and practices, there
are three important aspects all companies should look for when defining
potential: employees need to have the
aspiration to rise to a more senior role,
the ability to manage and lead effectively, and commitment to the organization.
Measure potential objectively. Only
one-in-three organizations use assess-
Books, Books
So Many Books
PennEnergy.com is your best source
for the largest and most comprehensive
compilation of books related to the
energy industry.
Oil & Gas
Power Systems
Renewable Energy
Business Management
Mechanical & Chemical Engineering
www.PennEnergy.com
10
TRAINING
Insights
11
Got jobs?
Weve got people.
PennEnergy JOBS is the key to attracting the energy industry professionals you need to hire
to meet your business goals. Our process puts your recruitment message in front of the
industrys best talent whether its online, in print, or at an event. This approach offers you the
fexibility to create custom recruitment advertising campaigns best suited to meet your budget
and objectives.
| Learn More |
Visit: www.PennEnergyJOBS.com
Call: 1-800-738-0134
12
INDUSTRY
Insights
BUDDY PHILLIPS is a line specialist for Georgia Power, in the Maintenance & Reliability
Department, has been with the company for 42 years, and is responsible for line maintenance
including: inspection of new line construction, steel structure repairs, evaluation of hardware
failures, helicopter inspections. He is also responsible for Transmission lines in Georgia and
live line training.
Linemen use this device by inserting the stainless steel bushing into the
attachment hole in the arm. Because
the attachment is made of a corrosion-resistant stainless steel, the workers no longer need to replace the entire
arm. As a result, it improves reliability and extends hardware life and has
also saved a significant amount of money in transmission and distribution
line repairs, and because of its success,
Georgia Power plans on installing the
13
Companies Mentioned:
Diversified Products
www.diversifiedproducts.com
Georgia Power
www.georgiapower.com
The most trusted and utilized provider of GIS data to the pipeline industry for M&A and asset valuation analysis
analysis.
MAPSearch provides detailed pipeline and pipeline facility information for use in Merger and Acquisition Analysis such as:
14
INDUSTRY
Insights
1. Shell
Based in Norway, Statoil is a major energy producer with 40 years of oil and gas
production experience on Norwegian
waters. Statoilsaid it had more than $26
billion in adjusted earnings and $25 billion in net operating income for 2013.
The company previously announced it
added 1.25 billion barrels of oil equivalent from exploration, recently achieving its highest organic reserve replace-
15
16
Shell
http://reports.shell.com/annualreport/2013/servicepages/downloads/files/
entire_shell_ar13.pdf
http://www.reuters.com/article/2013/05/08/
shell-gom-stones-idUSL2N0DP1I420130508
http://www.shell.com/global/aboutshell/
major-projects-2/mars-b.html
Statoil
http://www.statoil.com/en/investorcentre/annualreport/annualreport2013/pages/
default.aspx?redirectShortUrl=http%3a%2f%
2fwww.statoil.com%2f2013
http://www.statoil.com/en/NewsAndMedia/
News/2014/Pages/IORJune2014.aspx
http://www.reuters.com/article/2014/07/03/
statoil-oil-idUSWEB00P7E20140703
http://www.statoil.com/en/InvestorCentre/
AnnualReport/AnnualReport2013/Pages/
CEOletter2013.aspx
http://www.statoil.com/en/InvestorCentre/
QuarterlyResults/2013/Downloads/Financial%20statements%20and%20review%20
4Q%202013.pdf
Chevron
http://www.chevron.com/annualreport/2013/
documents/pdf/Chevron2013AnnualReport.pdf
ExxonMobil
http://news.exxonmobil.com/press-release/
exxon-mobil-corporation-announces-estimated-fourth-quarter-2013-results
http://news.exxonmobil.com/press-release/
exxonmobil-oil-production-increase-timestartup-clov-project
http://www.offshoreenergytoday.com/exxonmobil-10-new-projects-to-come-in-production-in-2014/
ConocoPhillips
http://www.reuters.com/article/2013/08/28/
us-usa-oil-offshore-idUSBRE97R0ZT20130828
http://www.conocophillips.com/
investor-relations/Company%20
Reports/2013_Annual_Report_CR.pdf
http://www.businesswire.com/news/
home/20131218005644/en/ConocoPhillipsAnnounces-Fourth-Oil-Discovery-Deepwater-Gulf#.U8mOooBdXXE
http://www.conocophillips.com/what-we-do/
producing-energy/oil-and-gas/offshore/Pages/going-deep-in-the-gulf-of-mexico.aspx
INDUSTRY
Insights
A Career in Downstream
What do People in
Downstream Businesses do?
By Cheryl McKinney, EOR Strategy and Commercial Business Leader, BP
downstream oil and gas industry is leading the way in providing exciting career opportunities for talented engineers around the
globe. Our industry is critical to the oil
and gas value chain. We refine, manufacture and market fuels, lubricants
and petrochemicals for both industrial
and retail consumers. This is our fundamental purpose.
HE
17
I often hear from our downstream engineers that they enjoy working in the
office environment, while still appreciating the opportunity to work with the
operational teams in the facilities. The
teams are made up of highly skilled
engineers and technicians, responsible for designing and developing plant
in a complex environment. Being located at a refinery or petrochemicals plant
allows employees to identify issues,
implement changes and examine ideas
and outcomes in a real world environment. These teams take things from the
hypothetical to reality and get to see the
tangible outcomes of their efforts.
While some roles may offer the
potential for significant international travel, the majority of roles are loca-
18
tion specific, with facilities often located near major consumption areas close
to major cities, which in turn provides a
stable work/ life balance.
What can recruits expect?
Downstream facilities are complex manufacturing sites with numerous functions all operating in unison. Therefore
roles in downstream are often suited to
inquisitive candidates, who tend to push
the boundaries in their thinking and
approach. Collaborative team players
suit this environment and can expect to
find an inclusive culture that encourages innovative thinking.
Downstream engineers are responsible for delivering often large-scale engineering projects and ensuring the safe
operation of the companys plants. BP,
in turn, provides compelling packages
and extensive learning opportunities in
the classroom and on the job. Through
INDUSTRY
Insights
Evidence-Based Management:
a Practical Management
Approach for the Energy Industry
By Eric Scheller, Director at Sapient Global Markets
ERIC SCHELLER is subject matter expert within Sapient Global Markets Midstream
practice. He has over 25 years of experience in oil, gas, NGLs and chemicals. His practice
areas include business and asset operations strategy, development and business in distress
and corporate restructurings as well as commodity marketing and trading. He has served in
a variety of business development, consulting, commercial, operations and technical roles for
several major companies.
19
connected assets to handle the technological advances and growing production volumes. This growth has spurred
business management complexity as
well as the amount of data to be analyzed to assess performance, which ultimately reduced available time to examine and seize opportunities. Throughout
this growth, companies recognized the
need to collect, validate, compartmentalize and digitize data into electronic data
Business
Operating assets
Supply chain
Control
Operate
Extend
Optimize
Ongoing operations
Turnarounds
Customers
Assets
Capacity
Portfolio
Control - Activities tied to the control aspect for the base drivers of the business.
Goal : All the processes necessary to operate the business assets are in place and
are valid to invoice and report against
Goal : Achieve business development and growth goals to achieve a competitive advantage
FIGURE 1: Parsing the Business into its Core Functional Activities Focuses Attention
on Key Business Elements.
20
21
22
tool that:
Provides immediate and clear feedback
Ties performance to goals and objectives
Aligns operational activity with strategic activity
Summarizes the right set of metrics
decision makers can control
Allows for problem identification within the business
Shows how decisions affect business
success
Compels decision making based on
analytics, not instinct
One of the most effective tools to
achieve these results is the visualized
scorecard. Central to the success of
scorecard use is its design rationale and
an actionable purpose that furthers the
insights into the business. A user-centered
design for the scorecard will maximize
the value of the user experience (UX).1 A
well-designed scorecard with an appealing user experience will enhance the
Requirement, Market
And Customer Insight In
Business Expansion
Requirement: Capacity
management tracking and
reporting
Actionable Output:
Asset efficiency
Fuel management
Supply management
EBITOA performance
KPI tracking
Asset risk factors
FIGURES 5: Overarching Decision Management Portal
ORGANIZATIONAL
Insights
SEMS Implementation
corporating High Reliability Management (HRM) processes into operations.6 There is a growing body of work
on HRM and those organizations that
embody these principles into operations. Those sectors where the cost of
failure can be very high, i.e., nuclear,
aviation and medicine are candidates
for HRM.
These traits include sensitivity to
operations by organizational leadership,
reluctance to accept simplistic explanation of issues, preoccupation with the
possibility of failures, deference to those
with expertise and knowledge regarding
an issue and organizational resilience.7
23
In May 2013, BSEE issued its Final Safety Culture Policy Statement that contained nine characteristics of a robust
safety culture.
Processes
Preoccupation
with failure
Mindful infrastucture for high reliability
Reluctance to
simplify
interpretations
Mindfulness
Sensitivity to
operations
Capability to
discover and manage
unexpected
events
reliability
Commitment
to resilience
Underspecifcation
of structures
24
tory verbiage.
Just like today, no one thinks it is
appropriate to drive home at the end of
the day while drinking a beer, behavioral modification driven by SEMS will
truly be part of how we do business.
Endnotes
1
http://www.bsee.gov/Regulations-andGuidance/Safety-and-Environmental-Management-Systems-SEMS/
Fact-Sheet/
http://www.gpo.gov/fds ys/pkg/FR-201304-05/pdf/2013-07738.pdf
Ibid.
http://ogjresearch.stores.yahoo.net/thestate-of-sems.html
http://www.chevron.com/
about/operationalexcellence/
managementsystem/
http://www.beckershospitalreview.com/hospital-management-administration/5-traitsof-high-reliability-organizations-how-tohardwire-each-in-your-organization.html
http://www.aml-safety.com.au/AMLstores/_images/pdf-files/Weick1987.pdf
Ibid.
10
http://www.bsee.gov/uploadedFiles/
BSEE/Final%20Safety%20Culture%20
Statement.pdf
11
http://www.bsee.gov/BSEENewsroom/Speeches/2013/
COS-Speech-04_25_13-final-website-(4)/
12
http://www.therrinstitute.com/assets/cosmaturity-model-2d-edition-adobeonline.pdf
13
http://www.pesa.org/index.php/news/c/
pesa-news/legal-2013/
14
http://www.iadc.org/
knowledge-skill-and-ability/
15
http://blogs.hbr.org/2013/05/
what-is-organizational-culture/
25
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