Study Reveals $1.4 billion Annual Corrosion Costs for Oil and Gas Industry

Study Reveals $1.4 billion Annual Corrosion Costs for Oil and Gas Industry

Study Reveals $1.4 billion Annual Corrosion Costs for Oil and Gas Industry

According to the United States Cost of Corrosion Study, produced by NACE International, one of the world’s leading authorities on corrosion engineering and control, corrosion costs the US oil and gas exploration and production industry $1.4 billion a year. Broken down, this equates $589 million in surface pipeline and facility costs, $463 million annually in downhole tubing expenses, and another $320 million in capital expenditures related to corrosion.

Minimising the Impact of Corrosion on the Industry

This breakthrough study shed light on the direct costs associated with metallic corrosion, and outlines national strategies to minimise the impact of corrosion on the industry. Its main activities included determining the cost of corrosion control methods and services, determining the economic impact of corrosion for specific industry sectors, extrapolating individual sector costs to a national total corrosion cost, assessing barriers to effective implementation of optimized corrosion control practices, and developing implementation strategies and cost-saving recommendations.

Tony Joynston, General Sales Manager for Filtration at Eclipse Magnetics Ltd, said: “Corrosion management has improved significantly over the past few decades. However, it is the opinion of many that although this is a great improvement, the industry as a whole must improve the implementation of optimal corrosion control practices.”

Gas and Liquid Transmission Pipelines

According to the report, “Corrosion is the primary factor affecting the longevity and reliability of gas and liquid transmission pipelines that transport crucial energy sources throughout the nation. There are more than 528,000 km (328,000 miles) of natural gas transmission and gathering pipelines, 119,000 km (74,000 miles) of crude transmission and gathering pipelines, and 132,000 km (82,000 miles) of hazardous liquid transmission pipelines. The average annual corrosion-related cost is estimated at $7 billion to monitor, replace, and maintain these assets. The corrosion-related cost of operation and maintenance makes up 80% of this cost.”

Fight Corrosion with Magnetic Technology

More recently, advances in in magnetic technology and enhanced understating of fluid flow dynamics have given rise to the development of high performance magnetic filters such as Ultrafiltrex, which extract sub-micron sized particles and do not rely on consumable components. If you’d like to find out more about the Ultrafiltrex, please click here to read more about Eclipse Magnetics’ innovative pipeline solutions>>