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Chapter Two

Oil and Gas Transportation

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Chapter Two

Oil and Gas Transportation

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© © All Rights Reserved
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CHAPTER TWO

1.0 LITERATURE SURVEY

2.1 Oil and Gas Transportation: Description and Brief History

Crude oil pipeline transportation involves the movement of crude oil from production facilities to

refineries or distribution points through a network of specialized pipelines. These pipelines are

designed to carry crude oil efficiently, ensuring a constant and reliable supply to meet demand

(Smith, J., 2017).

Crude oil pipeline transportation has a rich history dating back to the mid-19th century. The Oil

Transport Association, established in Pennsylvania, USA, in 1865, marked a pivotal moment

with the inception of the first modern pipeline, initially constructed using wrought iron (Johnson,

2008).

Over time, the use of pipelines expanded globally, facilitated by advancements in metallurgy and

welding technologies. This evolution led to the development of more efficient and safer pipeline

systems, capable of transporting larger volumes of crude oil (Smith, 2015).

In recent years, with the rise of environmental concerns and the need for improved safety,

pipeline transportation has seen further advancements. These include innovations in materials,

construction techniques, and monitoring systems to enhance the efficiency and environmental

sustainability of crude oil transportation (Miller, 2021).

2.2 Fundamentals

2.2.1 Transportation of Crude Oil and Gas

Transportation of oil and gas is a crucial aspect of the global energy industry. It involves the

movement of crude oil, natural gas, and their refined products from production facilities to
refineries, storage facilities, and end-users across the world. The transportation of oil and gas can

occur via different modes, including pipelines, tankers, trucks, and railroads.

According to the International Energy Agency (IEA), in 2020, approximately 61% of the world's

oil was transported by sea via tankers, while pipelines accounted for 38% of oil transport.

Similarly, natural gas was transported via pipelines (70%), liquefied natural gas (LNG) carriers

(27%), and trucks and other modes (3%) in 2020 (www.iea.org).

The transportation of oil and gas is critical to ensure a reliable and secure supply of energy to

meet the increasing demand of consumers. However, it also poses significant challenges,

including safety and environmental risks, political tensions, and market fluctuations. Thus, the

transportation of oil and gas requires careful planning, management, and regulation to ensure the

safe and efficient delivery of energy

According to the International Energy Agency (IEA), in 2020, the global demand for oil was

approximately 91 million barrels per day, and the demand for natural gas was around 4,000

billion cubic meters. To meet this demand, a vast transportation network is required, which

includes over 4 million kilometers of pipelines, thousands of tanker ships, and millions of barrels

of storage capacity (www.iogp.org).

The transportation of oil and gas is governed by various international and national regulations

and standards aimed at ensuring safe, reliable, and environmentally friendly transportation. The

International Maritime Organization (IMO) regulates the transportation of oil and gas by sea,

while the International Association of Oil and Gas Producers (IOGP) develops guidelines and

standards for the transportation of oil and gas by pipelines (www.imo.org).


2.2.1.1 Methods of Transportation

There are several methods used to transport oil and gas, including pipelines, ships, trucks, and

railways. Each method has its advantages and disadvantages, and the choice of transportation

method depends on various factors, such as distance, volume, cost, and environmental and safety

considerations.

2.2.1.1.1 Ships at Sea (Maritime)

Ships are used to transport oil and gas across oceans and seas to various ports and terminals

worldwide. They are cost-effective for long-distance transportation, and their flexibility

allows them to access various locations globally. However, they are susceptible to weather

conditions, piracy, and other security risks, and transportation is subject to stringent

international regulations. Accidents and spills can have severe environmental impacts.
Fig 2.1: Oil and Gas transportation via ship

Ships transport oil and gas in large tanks that are designed to withstand the pressure and weight

of the cargo. The tanks are fitted with pumps that move the oil and gas through pipes to the

terminal when the ship arrives. The tanks are also equipped with safety systems to prevent spills

and leaks.

Advantages:

 Can transport large volumes over long distances across oceans and seas.

 Flexible and can navigate to various ports and terminals worldwide.

 Cost-effective for long-distance transportation

Disadvantages:

 Susceptible to weather conditions, piracy, and other security risks.

 Transportation is subject to stringent international regulations.

 Accidents and spills can have severe environmental impacts.

2.2.1.1.2 Trucks

Trucks are used to transport oil and gas over short distances and to areas without pipeline

infrastructure. They are flexible and can access remote locations, making them ideal for

transporting small volumes of oil and gas. However, they are less efficient and have higher

transportation costs than pipelines and ships, and there is a higher risk of accidents and spills.
Fig 2.2: Oil and Gas transportation via truck

Oil and gas are transported using trucks by filling up their tanks with the fuel. The trucks then

drive to their destination, where the fuel is offloaded into storage tanks or other vehicles. The

trucks are usually equipped with pumps to transfer the fuel to other storage tanks, and they are

powered by diesel engines.

Advantages:

 Flexible and can access remote locations and areas without pipeline infrastructure.

 Ideal for transporting small volumes over short distances.

 Can be quickly mobilized and dispatched.

Disadvantages:

 Less efficient and have higher transportation costs than pipelines and ships.

 Higher risk of accidents and spills.

 Limited capacity compared to other transportation methods.


2.2.1.1.3 Railways

Railways are used to transport oil and gas over long distances and to areas without pipeline

infrastructure. They are flexible and can access remote locations, making them ideal for

transporting large volumes of oil and gas. However, they are more expensive than pipelines

and ships, and there is a higher risk of accidents and spills than pipelines and ships. They are

also limited in flexibility due to rail network limitations.

Fig 2.3: Oil and Gas transportation via railway

Railways transport oil and gas in tank cars that are fitted with pumps and valves to control the

flow of oil and gas. The tank cars are connected to each other and pulled by a locomotive. The

locomotive has a control system that regulates the speed and braking of the train.

Advantages:

 Flexible and can transport large volumes of oil and gas.

 Ideal for areas without pipeline infrastructure.

 Can access remote locations and areas.


Disadvantages:

 More expensive than pipelines and ships.

 Higher risks of accidents and spills than pipelines and ships.

 Limited flexibility due to rail network limitations.

2.2.1.1.3 Pipelines

Pipelines are long-distance transportation systems that are used to move oil and gas from

production areas to refineries, storage facilities, and distribution centers. They are cost-

effective and efficient, as they have low transportation costs and can move large volumes of

oil and gas. Pipelines are also considered environmentally friendly compared to other

transportation methods, as they produce fewer emissions and have a lower risk of accidents

and spills. However, they are vulnerable to leaks, corrosion, and other mechanical failure.

Pipelines use pumps to move oil and gas through a network of pipes from one location to

another. The pumps push the oil and gas through the pipes, and pressure is maintained to keep
the oil and gas flowing. The pipes are made of steel and are coated with an anti-corrosion

material to prevent damage.

Advantages:

 Cost-effective for transporting large volumes over long distances.

 Energy-efficient and environmentally friendly compared to other transportation methods.

 Safe and reliable when properly maintained and operated.

Disadvantages:

 Vulnerable to leaks, corrosion, and other mechanical failures.

 Construction and maintenance can have environmental impacts.

2.3 OIL PIPELINES

Pipelines can refer to gathering systems (wellhead to processing facilities), transmission lines

(supply areas to markets), or distribution pipelines (most commonly to transport natural gas to

medium or small consumer units). Pipelines play a very critical role in the transportation process

because most of the oil moves through pipelines for at least part of the route. After the crude oil

is separated from natural gas, pipelines transport the oil to another carrier or directly to a

refinery.

There are two types of oil pipeline: crude oil pipeline and product pipeline. While the former

carries crude oil to refineries, the latter transports refined products such as gasoline, kerosene, jet

fuel, and heating oil from refineries to the market. Different grades of crude oil or different

refined products are usually transported through the same pipeline in different batches. Mixing
between batches is small and can be controlled. This is accomplished either by using large

batches (long columns of the same oil or product) or by placing an inflated rubber sphere or ball

between batches to separate them. Crude oil and some petroleum products moving through

pipelines often contain a small amount of additives to reduce internal corrosion of pipe and

decrease energy loss (drag reduction). The most commonly used drag-reducing additives are

polymers such as polyethylene oxides. Oil pipelines almost exclusively use steel pipe without

lining but with an external coating and cathodic protection to minimize external corrosion. They

are welded together and bent to shape in the field.

2.3.1 Types of Pipes use in Transporting Crude Oil

In the transportation of crude oil, various types of pipes are employed to ensure efficient and safe

movement from production sites to refineries or distribution centers. These pipes are selected

based on factors such as the characteristics of the crude oil, the transportation distance,

environmental conditions, and cost-effectiveness. Here are the main types of pipes used:

 Carbon Steel Pipes

Carbon steel pipes are the most common type of pipes used for crude oil transportation.

They are known for their strength, durability, and resistance to corrosion.

Carbon steel pipes are ideal for long-distance transportation of crude oil due to their

strength and ability to handle high pressure and varying temperatures (Zhang et al. ,

2015).

 Ductile Iron Pipes

Ductile iron pipes are strong and impact-resistant, making them suitable for transporting

crude oil under high pressure.


They find application in high-pressure systems where their durability and strength are

crucial (Kováč, 2018).

 Steel

It is the most regarded material to be used in the oil and gas industry due to its quality,

price, availability and constancy. It is seen that every segment of oil and gas age, running

from gathering and refining of things to transportation them over the world, uses it. Steel

is exceptionally considered for scattering reason. It is the central material which is used

for piping and external parts due to its incredible quality and resistibility to wear. Every

so often, when steel is mixed with somewhat level of various materials, it improves the

completed outcomes quality, or other appealing characteristics.

 Stainless Steel Pipes

Stainless steel pipes are corrosion-resistant and possess high strength, making them

suitable for transporting corrosive crude oil or in environments where corrosion is a

concern.

They are used when the crude oil being transported is acidic or corrosive, ensuring

longevity of the pipeline (Cheng and Wang, 2016).

 Fiberglass Pipes

Fiberglass-reinforced pipes are corrosion-resistant and lightweight, making them ideal for

transporting crude oil in corrosive environments.


They are utilized in areas with high levels of corrosion or in challenging terrains due to

their durability and corrosion resistance (Gigante et al., 2016).

2.3.2 Advantages and Limitations of using Steel Pipes for Transporting Crude Oil

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