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SteamNews
volume 5 no 2
FOCUS ON: OIL,
PETROCHEMICAL
AND CHEMICAL
INDUSTRIES
E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y
NEWSNEWSwww.spiraxsarco.com/global/us
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LUBE OIL FLOWING
INDUSTRY TREND TALK
EDITOR'S NOTE
EDUCATIONAL NEWS BRIEF
INSTANT KNOWLEDGE
POLYMERS PLANT COMPOUNDS
SIX-FIGURE SAVINGS WITH PROPER
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CLICK AND LEARN ABOUT
FLASH STEAM
QA: IS OPEC INFLUENCING
THE U.S. SHALE MARKET?
2424 FREE – STEAM TOOLS MOBILE APPE X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y
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C
ommonly, attention is given to a plant’s steam
tracing system only when maintenance is re-
quired. Process plants that use steam tracing to
protect their piping from the effects of low tem-
perature events or to just maintain their process liquid integ-
rity, sometime forget the basics of good design practices.
In this issue of SteamNews, our steam experts explain the
basics of sizing and installing external line tracing and also
relate those practices to offering solutions to a Northeast-
ern U.S. refinery. With this being our Oil and Petrochemical
focused issue, Spirax Sarco’s own Neil Davies offers insight
into how refineries must now utilize the very best skills and
expertise of their equipment supply partners to successfully
compete and win domestic and export business. Matthew
Jurecky, GlobalData’s head of Oil and Gas Research and
Consulting, explains OPEC’s influence and impact to the U.S.
Shale market and how it impacts investment in oil and gas
technologies. We wrap this issue up with an explanation of
the complexities involved when oil and gas producers make
operational decisions and spend money the way they do.
Understanding that just throwing “technology” at a problem
is rarely a solution in and of itself. The “human” capital side
of investment can help make a huge difference when apply-
ing better work practices. Becoming an actual partner to an
oil and gas supplier shows commitment to their operational
excellence initiatives especially in difficult production environ-
ments. I hope you enjoy this special Oil and Petrochemical
issue of SteamNews. n
Tracy Britt
Marketing Communications Coordinator for Spirax Sarco
EDITOR'S NOTE
A LOOK AT THE OIL, PETROCHEMICAL
AND CHEMICAL INDUSTRIES
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Industry Trend Talk
USING STEAM TRACING FOR
PROCESSAPPLICATIONS
O
ften, the temperature of process liquids being
transferred through pipelines must be main-
tained to meet process requirements, prevent
thickening and solidification, or simply to protect
against freeze-up. This is achieved with jacketed pipes or by
attaching one or more tracing lines (carrying a heating me-
dium such as steam or hot water) to the product’s pipeline.  
In these applications, steam usage may be relatively small,
but the tracing system usually is a major component of the
steam installation and the source of many problems.
While no single article can address all of the contingencies
affecting a steam tracing system, the following guidelines
provide an overview of items to consider.  Only external
tracing is addressed because this is the area most likely to
cause difficulties when no existing experience is available.  
External tracing is simple, and, therefore, inexpensive to in-
stall and fulfills the most processes’ needs.
External Tracer Lines
One or more heat-carrying lines, sized from 0.375 to 1”
normal bore, are attached to the main product pipe. Heat
transfers to the product in three ways: conduction - through
direct contact, convection, via currents in the air pocket
formed in the insulating jacket, and through radiation. Trac-
er lines can be constructed of carbon steel, copper or stain-
less steel. If the product line is constructed of a particular
material to accommodate the process fluid, the tracer line
material must be selected carefully to avoid electrolytic
corrosion at contact points.
Heat tracing can be used to heat a variety of products. Understanding the basics of sizing and installing
external line tracing will help you apply it effectively.
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For short tracing runs – around short verti-
cal pipes or valves and fittings – small bore
copper pipes (perhaps 0.25” bore) may be
wound around the product lines (figure 1).
The layout should be arranged to provide
a continuous fall along the tracers. (Note:
Wrap around tracers should be avoided on
long horizontal lines.) A run of even 100’ of
6” product line will require 500 to 600’ of
wrap-around tracing. In this scenario, the
pressure drop along the tracer would be
high and the temperature at the end of
the line away from the supply would be
low. Indeed, the remote end
of the tracer probably would
contain only condensate,
and the water’s temperature
would fall as it continued to
give up heat.
Clip-On Tracers
The simplest form of external tracer is clipped or wired to
the product line. Maximum heat flow is achieved when the
tracer is in tight contact with the product line; consequently,
the securing clips should not be spaced wider than 12 to
18” on 03.75” tracers; 18 to 24” on 0.5” tracers; and 24 to
36” on 0.75” and larger tracers.
The tracer pipes literally can be wired on, but to maintain
close contact, 0.5” galvanized or stainless steel bands are
better. One practical application method is a packing case
banding machine. Where racers are carried around bends,
three or more bands should be used to ensure that good
contact is maintained. Where it is not possible to use bands
as on valve bodies often annealed stainless steel 18 gauge
wire is an alternative. With either band material, remember
to consider any special needs to avoid external corrosion or
electrolytic action.
Welded Tracers
Where the temperature difference between the tracer and
the product is low, the tracer can be welded to the product
line. This can be done either with short-run welds or with a
continuous weld for maximum heat transfer. Welded tracer
sometimes is laid along the top of the pipe instead of the
bottom, greatly simplifying installation. Advocates of this
method claim that the location does not adversely affect
heat transfer rates.
Figure 1: Small bore tracing
lines can be wrapped around
vertical product lines, but this
method should not be used
on long, horizontal runs.
External tracing is simple, and,
therefore, inexpensive to install and
fulfills the most processes’ needs.
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Heat Conducting Paste
For maximum heat transfer, a heat conducting paste can
be used to fill the normal hot air gap (figure 2). The paste
can be used with any of the clipping methods, but the sur-
face must be wire-brushed clean before applying the past.
Insulation
If the product being heated is temperature sensitive, it
is important to avoid local hot spots on the pipe by intro-
ducing a strip of insulation material – fiberglass or min-
eral wood with packing blocks constructed of inert ma-
terial to maintain spacing – between the tracer and the
product pipe.
In every installation, insulation should cover both the prod-
uct line and tracer, but the air space must remain clear.
This can be achieved three ways (figure 3)
•	Aluminum foil or galvanized steel sheet can be wrapped
Lagging
Product
Tracer
Heat
Conducting
Paste
Figure 2: Heat
conducting paste
can be placed in the
air gap to improve
heat transfer.
Insulation should
be used over the
tracer line and
product pipeline.
Three basic meth-
ods are used:
Aluminum foil (A);
preformed, sectional
insulation (B);
and preformed,
sectional molded
insulation (C).
Figure 3
A
B
C
Lagging
Product
Tracer
Lagging
Tracer
Aluminum
Foil
Wire Netting
Product
Lagging
Tracer
Product
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around the line and tracing; then, insulation is applied
over the sheet or foil. Alternatively, small mesh galva-
nized wire netting can be used instead of metal sheet.
•	Sectional insulation preformed to one or two sizes larger
than the product main can be used. One disadvantage is
this insulation can be easily crushed.
•	Preformed sectional insulation designed to cover both
product line and tracer can be used. Preformed rigid sec-
tional insulation usually is preferred to plastic material be-
cause – rigid insulation retains its thickness and efficiency.
In all cases, the insulation should be finished with water-
proof covering: Most insulation is porous, and it is useless
as heat-conserving material if it is allowed to absorb water.
It also may need to be protected from mechanical damage.
Sizing External Tracers
The goal of any steam tracing or jacketing installation is to
maintain the line’s contents at a satisfactory working tem-
perature under all conditions of low ambient temperature –
with adequate reserve to meet extreme conditions.
On some exposed sites, for example air temperature can
be reduced by 4 degrees when 20 mph wind is present.
These are circumstances that must be considered when
studying the tracer line requirements. Information about
prevailing conditions usually can be obtained from the inter-
net or local weather forecast.
External tracer sizing most often is accomplished based
on the experience of a given company with a particular
process but do not necessarily apply elsewhere. There
also are widely differing opinions about layout. One rule of
thought states that multiple tracers should be positioned
below the product’s center line while another states that it is
preferable to space tracers equally around the line.
Then, there are those who will endeavor to size their trac-
ers from 0.375. 0.5, 0.75 or 1” or larger pipe. But another
school of thought states that because tracers have only
There also are widely differing opinions about layout. One rule of
thought states that multiple tracers should be positioned below the
product’s center line while another states that it is preferable to space
tracers equally around the line.
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minute contact with the product line, much more even heat
distribution will result if multiple 0.5” tracers are used. If
this rule is followed, Table 1 can be used for most average
installation requirements. Type A would suffice for most fuel
oil applications and for those lines carrying acid, phenol,
water and some additional chemicals. But in some cases,
spacer tracing (insulation between the product line and the
tracing) would be employed.
Steam pressure is important and must be specified accord-
ing to the product temperature required. For noncritical trac-
ing (Types A and B in Table1), a steam pressure of 50 psi
generally would be suitable. For Type C, a higher pressure
and hot discharging trap may be required.
Jacketed Lines
Ideally, jacketed lines should be constructed in no more than
20’ lengths with condensate removed from each section.
Steam should enter at the highest end so there is a natural
fall to the condensate outlet. When it is impractical to trap
each length, several sections (up to a combined length of 80
to 100’) may be joined in moderate climates. In extremely
cold parts of the world, 40’ should be the maximum. When
linking sections, avoid connecting solely through the bottom
loop. This can only handle condensate. The standing water
impedes the free flow of steam (Table 2, next page).
Type A Type B Type C
Noncritical
General Frost
Protection, or
Where Solidifi-
cation May Oc-
cur at Temper-
atures Below
75°F (24°C)
Noncritical
Solidification
May Occur at
Temperatures
from 75 to
150°F (24 to
66°C)
Critical
Solidification
May Occur at
Temperatures
from 150 to
300°F (66 to
149°C)
Product Line
Size
No. of 0.5
Tracers
No. of 0.5
Tracers
No. of 0.5
Tracers
1” 1 1 1
1.5” 1 1 2
2” 1 1 2
3” 1 1 3
4” 1 2 3
6” 2 2 3
8” 2 2 3
10 to 12” 2 3 6
14 to 16” 2 3 8
18 to 20” 2 3 10
Table 1: Number of 0.5 Tracers Used. Depending on the product
pipeline’s service, as many as 10 tracers may be required to
maintain process temperature.
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Product Line Jacket Diameter Steam Connection
2.5 (65 mm) 4 (100 mm) 0.5 (15 mm)
3 (80 mm) 6 (150 mm) 0.75 (20 mm)
4 (100 mm) 6 (150 mm) 0.75 (20 mm)
6 (150 mm) 8 (200 mm) 0.75 (20 mm)
8 (200 mm) 10 (250 mm) 1 (25 mm)
10 (250 mm) 12 (300 mm) 1 (25 mm)
Although a 0.5” condensate outlet usually is adequate, an
outlet that is the same size as the steam connection often
is used to simplify installation.
Positioning
In horizontal runs, the steam will generally flow parallel to
the product line. As far as possible, steam should enter
from the high end to allow free flow of the condensate to
the low end; it should be self-draining.
It is generally considered preferable to center one tracer
on the bottom of the line or place two tracers at 30° or
three tracers at 45°. Where multiple 0.5” tracers are used,
they should be arranged in loop fashion on either side
of the product line (In vertical lines, the tracers would be
spaced uniformly.)
The maximum permissible tracer length depends, to some
extent on the size and initial steam pressure, but as a gen-
eral rule, 0.375” tracers should not exceed 60” in length,
and the limit for all other sizes should be 150’. Bends and
low points in the tracer should be avoided.
Expansion
Tracer line expansion often is over looked. Naturally, the
steam-heated tracer will tend to expand more than the prod-
uct line. Where the tracer passes around flanges, the bends
are quite adequate to accommodate expansion. But, for long
runs of uninterrupted tracer, it is essential to provide for ex-
pansion by forming a complete loop in the tracing line.
Understanding the components of a steam tracing system
is essential for effective installation and operation. Contact
a reputable supplier for help when designing your system to
ensure that your product will be effectively heated. n
Table 2: Number of 0.5 Tracers Used. This general guide will help
you size jacketed line connections.
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HOW CAN U.S. REFINERIES
HANDLE THE GROWING GLUT OF
U.S. CRUDE OIL PRODUCTION?
A
t the time of writing the price of WTI crude
is approximately $51 per barrel. This com-
pares to the price of near $100 per barrel
in August 2014. This is a 50% price drop in
less than 6 months.
For at least the past 5 years U.S. crude oil production has
been increasing; the result of new shale oil production
emerging from horizontal drilling and hydraulic fracturing.
The number of oil rigs drilling for crude peaked in 3Q 2014
just as the price of crude oil began to fall. Each month it
seems U.S. crude oil production continues to break pro-
duction records. Since fourth quarter 2014 the effect of re-
duced crude pricing has had a consequence on the num-
Educational News Brief
By Neil Davies, Business Development Manager - Fuels  Chemicals
ber of oil rigs drilling. Month on month the oil rig count has
been reduced from a peak of around 1,609 to the present
number of around 760, at time of writing. Even with this re-
duction of oil rigs actively drilling U.S. crude production has
been continually rising. Only this week has the U.S. Energy
Information Administration forecast the first monthly slip in
oil production for May 2015, in the past 4 years.
As U.S. production continues the availability of storage for
this crude production are being depleted. Central storage
areas such as Cushing Oklahoma is forecast to reach its
“glass full’ status with only months to go. As we move clos-
er to filling Cushing other upstream storage facilities are
being used. Contingent strategies through offshore tank-
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ers and onshore tanks and terminals are helping to ease
the load while waiting for futures pricing to rise. Federal
Law prevents the export of U.S. crude oil without some
processing having taken place on U.S.A. soil, with only a
few exceptions. Canada, an exception, is purchasing U.S.
Light Tight Oil (LTO) along with natural gas; while Mexico
is presently negotiating a “swap” of Mexican heavy crude
for American LTO. Slowly the crude oil export ban is being
mitigated, though there are no expectations that a blanket
reversal will occur anytime soon.
In line with the export ban, refiners are operating at near
record capacity utilization rates.  Those rates have been
recently recorded at over 92%, the highest seasonal rates
since 2005. Capacity expansions specifically targeted
at processing LTO are in process. Initially the least cost
options, which may also be initiated quickest have been
approved. Stabilizers and condensate splitters are being
built to perform a single distillation process, which there-
Federal Law prevents the export of U.S. crude oil without some processing
having taken place on U.S.A. soil, with only a few exceptions.
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…steam systems of large oil and petrochemical facilities are like arteries; supplying the
lifeblood to the plants main processes; heating the limbs of the facility ensuring product
flows smoothly through the plants pipework. Steam leaks, poor condensate recovery and
poor condensate removal from heat transfer equipment reduces the arteries capabilities to
effectively supply energy throughout the plant.
fore allows the resulting petroleum products to be exported
in line with U.S. regulations. Other options for refiners to
process greater quantities of LTO are to add hydroskim-
ming capacity, used to distill the light crude into reformer
and hydrotreater units for further processing. The least
cost option, and that which has already taken place, is to
improve utilization rates and debottleneck where appropri-
ate. Downstream of refineries petrochemical plants have
also seen increased throughput and capacity utilization.
Increased production from highly complex refineries are
providing increased feedstock for the industry to utilize.
At these record capacity utilization rates refineries must
ensure that operations are running efficiently, reliably and
safely. Plant availability in times of high utilization rates are
essential to sustaining production. Productivity should be
maximized to support the ongoing increased production of
LTO. At today’s refineries, petrochemical plants, production
processes, utilities, and other associated systems, they
must all work together in harmony. When focusing on utili-
ties, the steam systems of large oil and petrochemical fa-
cilities are like arteries; supplying the lifeblood to the plants
main processes; heating the limbs of the facility ensuring
product flows smoothly through the plants pipework. Steam
leaks, poor condensate recovery and poor condensate
removal from heat transfer equipment reduces the arteries
capabilities to effectively supply energy throughout the plant.
High utilization rates require production to continue unin-
terrupted, and with that comes a requirement to operate
reliably while increasing uptime and mean time between
failures (MTBF). Often the steam trap is perceived as a
component which may be locked-out or by-passed to over-
come a failure or to provide production availability. In real
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terms however, the steam trap is a component which pro-
vides condensate removal or highlights a process or sys-
tem problem, which requires additional analysis to resolve
and improve the heat transfer system. Only when a prob-
lem is highlighted can it be analyzed to establish the root
cause of the failure, and in turn a complete and long term
reliable solution be introduced.
Utility and steam system expertise allow refineries and
petrochemical plants to create reliable and efficient sys-
tems, helping to reduce downtime while also improving
productivity, product quality and product yield. Identifying
and reducing opportunities for waterhammer to occur will
help prevent major outages and large scale safety prob-
lems. Slip hazards caused by condensate leaks may freeze
during winter. Steam leaks with high noise levels, scalding
and burn hazards all provide opportunities for OSHA and
compliance incidents. Attending to these type of typical site
problems can yield significant cost avoidance.
As utility systems are modified to, enhance safety and
reliability, the systems Energy Intensity Index (EII) will
be improved. Modifications focused on reducing energy
consumption and introducing methods to re-use excess
low pressure and exhaust steam should be found. Re-
ducing and re-using energy will not only reduce a plants
EII but will also help reduce emissions. Although not
heavily regulated, when compared to other constituents
CO2
and other emissions are a key focus in environmen-
tal and sustainability programs. Plant, utility and energy
managers, along with reliability and process engineers
must now work hand in hand to create best in class man-
ufacturing procedures.
Production facilities no-longer compete in a local market
place. They must now become leaders with global com-
petitors, who may have increased opportunities to employ
low-cost labor and operate in areas which have a lower
level of environmental regulation. Often competitors have
newly designed and recently built plants employing the
very latest technologies, and may even be subsidized by
local governments. Only by utilizing the very best skills
and expertise to find win-win solutions may oil refineries
and chemical plants successfully compete and win do-
mestic and export business.
Targeting focused plant programs on safety, availability,
reliability and production will greatly affect the output and
competitiveness of each individual plant. Through align-
ment with specialty companies, who provide expertise and
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Targeting focused plant programs on safety, availability, reliability and production will
greatly affect the output and competitiveness of each individual plant. Through alignment
with specialty companies, who provide expertise and solutions, oil refineries and chemi-
cal plants can find many opportunities for successful partnerships to improve utility and
steam systems.
solutions, oil refineries and chemical plants can find many
opportunities for successful partnerships to improve utility
and steam systems. Ensuring high capacity utilization rates
are both possible and sustainable and will help our nation
move toward processing all the U.S. Light Tight Crude Oil
from within its borders n
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STEAM TRACING KEEPS
LUBE OIL FLOWING
TO LOADING RACK AT NORTHEASTERN REFINERY
O
ften, the classic solution proves to be the
optimal choice, from both technical and
business standpoints. Such was the ex-
perience of a New Jersey refinery, where
steam tracing became the technology of
choice for precision low-temperature control, together
with reliable overheating protection. To control tempera-
ture within feed lines from lube oil storage tanks to load-
ing racks, the refinery considered and rejected electric
temperature tracing on the basis of higher cost, a history
of reliability trouble and difficulty of troubleshooting.
Facility Description
The refinery, with a capacity of 130,000 bbl/day of crude
oil, recently upgraded its product from lube oil base stock
to high-grade finished lube oils.  They then marketed both
bulk and blended product and a proprietary line. As part of
the upgrade, the refinery undertook a $9 million conversion
from bulk tank farm operations to loading rack operations.
This facility loads rail cars and tanker trucks for transport to
packaging operations and wholesale customers.
The Loading Rack Project
The refinery employed Spirax Sarco, Inc., to design and
implement a steam tracing system from its tank pumps
through the loading rack to ensure economical, reliable
product transfer year round. The refinery turned to steam
tracing for the precision temperature control necessary
to keep viscosity to a minimum without overheating and
damaging the product.
Basic Control Approach
Control for the refinery’s steam tracing system is provided
by Spirax Sarco direct acting steam control valves which
maintain line temperature at 110°F with 50 psi steam.
Since this supply is capable of heating the product to a
destructive 300°F, control provided by the valves has to
be precise.
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Another concern in the system design was to guard
against excessive heat transfer from the tracer to the
product during no-flow conditions. Spirax Sarco met this
concern by partnering with a company who provided pre-
insulated tubing for uniform, controlled heat transfer to
the transported product.
A third cornerstone of the control approach is use of
Thermo-Dynamic steam traps with strainer connectors.
They provide the reliable steam trap operation essential
to precise temperature control.
System Description
The upgraded refinery has eight main storage tanks, each
heated by dry steam provided by Spirax Sarco separators
and control valves feeding prime surface heat exchang-
ers. Six pumps serve six, 6-in. steam-traced main lines
feeding two elevated loading stations, one for rail cars;
the other serving two tank trucks simultaneously.
Comprising a quarter mile of piping in all, each main line
has 12 tracers; 6 running east and 6 west. Each traced
run is no longer than 200 ft. Steam tracing extends to
mass flowmeters at the loading stations. Compressed air
purges the lines downstream of the flowmeters to evacu-
ate all product. Spirax Sarco hose cleanup stations mix
steam with water to aid in dealing with any spillage.
Troubleshooting And Maintainability Factors
With troubleshooting and low-cost maintenance as criti-
cal factors in the selection of steam tracing, Spirax Sarco
employs in-line isolatable and repairable components
throughout the installation. In-line quick change traps
enable change-out in minutes instead of hours. Spirax
Sarco manifolds with integral piston valves provide rapid
tracer line isolation in the event of a steam leak. The
numbering of every oil feed line enables rapid identifica-
tion and isolation.
The Results
The refinery obtained accurate overheat protection using
the Spirax Sarco control scheme in combination with the
partnership who provided pre-insulated tubing. Addition-
ally, the lowered viscosity of the safely heated oil has re-
duced pumping load and accelerated bulk loading opera-
tions year round. According to the refinery’s senior project
engineer, “We needed a tracing system that would accu-
rately maintain lube oil temperature from the tank farm to
the loading rack, and Spirax applied its products and ex-
pertise to ensure the goal was met.”  
Steady refinements to proven technology can often pay
dividends in the real world when compared to cutting-edge
methods. No better example exists than the low-mainte-
nance, flexible low-temperature control afforded by prop-
erly designed steam tracing. n
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Executive Recruiting
for the Energy Market
“BIC had efficient processes and highly
qualified candidates, both of which were
instrumental in making the investment
in a strategic position an informed
decision.”
— Bret Pardue, CEO and President,
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“BIC Recruiting has a very strong
candidate database exclusive to the
industrial services industry.”
— Danny Donaldson, Group President,
The Brock Group
“BIC Recruiting knows the industry better
than anyone and has a broad network
we could tap into. The BIC Recruiting
team did an outstanding job for us and
I would definitely recommend them to
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— Sandy Scott, CEO, Sprint Safety
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For a confidential C-level executive search or placement of
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www.bicrecruiting.com.
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Here’s a brief checklist to get you started:
•	Check that all statutory tests of boiler water level alarms are
being performed and recorded properly.
•	Consider installing a boiler water high level alarm. Too high
water levels in the boiler can cause wet and dirty steam to
contaminate your process.
•	Check that the feedtank is being heated to the right temperature.
Heating the tank to 185°F or 194°F will drive off dissolved oxygen,
saving water treatment chemicals.
INSTANT KNOWLEDGE –
HERE COMES
SUMMER SHUTDOWN –
ARE YOU READY?
The summer shutdown season will soon be upon us, but while
everyone else heads out on vacation, maintenance staffs know
this is a great time to get important jobs down without worrying
about disrupting normal plant operations.
Careful planning is the key to making the most of this valuable
opportunity. Use our checklist to help you plan your summer
shutdown work program.
Start in the boiler house…
The boiler house is the engine of any steam
system. Make sure yours is in good working
order. Check that vital maintenance and
testing is being regularly performed.  It’s also
a good idea to look for ways to improve boiler
house operation.
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•	Is a deaerator head fitted to the feedtank?  If not, fit one
because it efficiently combines cold makeup water, flash
steam and hot condensate and can save you energy.
•	Check the feedtank is vented to prevent pressure build-up.  
Consider fitting a maintenance-free stainless steel vent head.
•	Review water treatment records.  Look for hardness
slippage through the water softener, contamination of the
condensate return and correct chemical dosing.
•	Check for excessive steam venting from the boiler
feedtank or condensate return set. It could indicate
leaking steam traps.
•	Check the rate of boiler blowdown. If automatic blowdown
is not fitted, consider installing a system as it will almost
certainly be more efficient than manual control.
•	Check the boiler gauge glass is not damaged. If it is,
replace it immediately.
Check these items as well:
•	Carry out a steam trap survey to assess steam traps.
•	Check flowmeters are correctly calibrated.
•	Check condensate pumps are working correctly.
•	Check for any loose or missing lagging.
•	Is the condensate being returned to the boilerhouse?
•	Check flanges and stop valve steam for leaks.
•	Check that steam separators are installed prior to plant
control equipment to ensure dry steam is delivered to
the process.
•	Check for leaks from vent pipes of safety valve.
•	Check that high limit protection devices operate at
correct temperature.
•	Check pipe supports that may have worked loose.
•	Check pressure gauges for damage. Do they need
calibration or replacement?
•	Ensure control valves are shutting off properly and not
hunting. Recalibrate the positioner when line are cold. n
LEARN MORE
To learn more, contact a Spirax Sarco
sales representative today.
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QAMatthew Jurecky is GlobalData’s Head of Oil  Gas Research
and Consulting. He has multiple years’ experience working internationally
in energy research and consultancy for firms Wood Machenzie and IHS.
During this time, he engaged in a variety of projects, including offshore
bid round strategy formulation for an independent, upstream acquisition
screening for an international downstream company, and portfolio
rationalization for South American national oil company. Mr. Jurecky
has an MBA from Texas AM University and a bachelor’s degree in
Business Administration from Southern Methodist University. Visit
www.globaldata.com for research on the oil  gas industry.
Q: How has OPEC’s decision not to lower crude oil
production targets impacted U.S. shale market? Do you
see OPEC’s manipulation of oil production impacting
U.S. shale markets in the longer term?
IS OPEC
INFLUENCING
THE U.S.
SHALE MARKET?
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A: The Core areas of development in the major plays will
continue to grow. However, at lower oil prices, additional
capital to accelerate development will be more difficult to
secure and many companies are dependent on this for
continued development. Efforts to expand and test oil pro-
duction outside the core area will generally stop, until costs
come down far enough or oil prices rise to encourage further
development. OPEC did not manipulate the market – they
are competing in a global industry for market share just as
Ford competes with Nissan or Boeing with Airbus. In the
long term, U.S. shale markets could compete more directly
with OPEC’s key customer. At this point, U.S. production
is still generally displacing domestic imports from West Af-
rica, which in turn is now having to sell its crude in Asia. The
emerging strong oil industry across Mexico, Canada, and the
U.S. is poised to challenge for global export market share.
Q: Some are comparing the U.S. shale boom to the
dot-com boom and predicting a similar bust. Do you
think this is a fair comparison and how much does
OPEC’s recent decision play a role here?
A: The dot-com boom is not comparable to the shale boom.
There is a tangible difference between producing and selling
a commodity such as oil versus things like websites generat-
ing no revenue. Futhermore, the core of the industry is still
functioning and projected to grow at $50 a barrel of oil, where
prices have stabilized. While it won’t grow as quickly, it is far
from being a bust. OPEC isn’t relevant and they should not
be expected to subsidize a foreign competitor. The ingenu-
ity of the U.S. industry will continue to innovate and reduce
costs, just as they have over the last 10 years. Wells that cost
$12 million five years ago are now worth $6 million and could
be valued at $3 million in another five years. This will contin-
ue driving market growth as long as people are using oil.
Q: If shale producers are cutting back, or will be in the
near term, how does that impact investment in oil  gas
technologies (pumps, flowmeters, valves, etc.)?
A: Across the board there will be a need to tighten costs, so
margins on selling these items will shrink and companies
will struggle, primarily those servicing smaller companies or
OPEC did not manipulate the market – they are competing in a global
industry for market share just as Ford competes with Nissan or Boeing
with Airbus. In the long term, U.S. shale markets could compete more
directly with OPEC’s key customer.
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those operating on the fringes. Investment will be focused on
improving the efficiency of these technologies so that they
are competitive.
Q: Looking ahead five to 10 years, do you see OPEC’s
influence diminishing, staying the same, or growing?
A: OPEC is likely to continue along the same trend of hav-
ing a diminished influence over the next 10 years. Production
growth outside OPEC will continue to challenge the group,
as well as the individual objections to policies from countries
within the group.
Q: Looking ahead five to 10 years, where do you see the
U.S. shale industry compared to today?
A: The U.S. shale industry has just gone through a massive
growth phase. In 10 years the industry will be in a more ma-
ture state and growth expectations will not be nearly as high,
with production levels likely stabilized. n
	This article was originally published in the
March 2015 issue of Flow Control magazine.
U.S. Shale production is driving change in the global
oil  gas market, including OPEC's recent moves to
improve its competitive position against shale oil.
iStock0000498991882715x1810/Bob Ingelhart/iStock
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Investigating Cause And Effect
A Spirax Sarco steam system assessment pinpointed the
source of the problems: the steam traps. This particular pro-
cess was equipped with balanced pressure thermostatic
steam traps to drain condensate from the heaters. These
types of traps are designed to cool the condensate below
steam saturation temperature before opening. But that’s not
what the PVA slurry heaters needed.
The steam audit also determined that some of these traps
were failing open, blowing live steam straight through. This
made it impossible to maintain both heat exchanger steam
pressure and design process temperature. Other thermostat-
POLYMERS PLANT
COMPOUNDS SIX-FIGURE SAVINGS
WITH PROPER STEAM TRAPS
O
ptimizing energy and production efficiencies in process industries is essen-
tial for remaining competitively and environmentally sustainable. A leading
resin manufacturer knew exactly where to turn when processes in one of its
Texas resin compounding facilities presented controllability challenges.
Steam consumption in their large PVA slurry heaters continued to rise while
throughput fell. Heating coils were fouling, product temperatures were not being met, and
the rise in downstream condensate pressure was adversely affecting other processes. The
system had to be shut down at least five times a year for cleaning.
$
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ic traps were backing up condensate into the heat exchanger
coils which reduced the available heating surface area for the
steam to heat the process.
Both types of trap failures caused the control system to raise
steam pressure in an effort to follow the heating load. This
higher pressure, higher temperature and reduced heating
surface caused the PVA slurry to adhere to the heat ex-
changers and foul them rapidly.
This one misstep, using the wrong type of steam trap, was
the source of all the problems.
Solutions Apply the Science of Steam
Spirax Sarco recommended that the steam traps be replaced
with float  thermostatic traps (FT450 traps). Ideal for this
application, this type of trap discharges condensate at steam
temperature with no back-up or sub-cooling of the conden-
sate. And an integral balanced pressure thermostatic air vent
discharges non-condensable gases which improves heat
transfer and reduces corrosion.
The Spirax Sarco Energy Services Group pre-fabricated five
FT450 steam trap stations with associated Spira-Tec steam
trap monitoring devices and piping components off site to
minimize the plant’s downtime during installation.
Within two weeks, the turnkey project was completed to plant
specifications and Spirax Sarco best practices.
Formula for Success
The results have been outstanding. Condensate is now be-
ing drained effectively with no back up. Steam chest pres-
sure is stable at design conditions, while steam consumption
has been reduced by 1000 lbs/hr. Product no longer adheres
to the heat exchanger surfaces, eliminating the need for re-
peated system shutdowns for cleaning. And maximum pro-
duction throughput and uptime have been achieved.
With tight control restored over energy and processing effi-
ciencies, officials at the plant also appreciated the fiscal ben-
efits. Based on project cost and annualized energy and pro-
ductivity gains, the plant has realized significant payback on
the project with an ROI of 968% and gross annual savings of
$800,000. n
Based on project cost
and annualized energy
and productivity gains,
the plant has realized
significant payback on
the project with an ROI
of 968% and gross annual
savings of $800,000.
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To find out more visit
www.spiraxsarco.com/global/us
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GET COST SAVINGS
IN A FLASH
space heating. Every pound of flash steam used is a pound
of live steam that does not need to be supplied by the boiler.
The advantage of recovering flash steam is relatively easy.
Flash steam can be collected using a flash vessel. First con-
densate enters the vessel. Inside the vessel’s chamber, flash
steam separates from the condensate and passes out of
the vessel so it can be used for heating something. The re-
maining condensate is discharged through a steam trap and
passed to the condensate recovery system to be piped away
to the boiler feedtank.
The potential savings is huge, with the installation of flash
steam recovery equipment usually paying for itself in a mat-
ter of months and the subsequent cost savings being en-
joyed for years to come. n
M
any companies spend loads of money on
advertising campaigns, promoting an envi-
ronmentally-friendly brand image but it’s so
puzzling why any would allow flash steam to
vent from their plant.
Flash steam is released from hot condensate when its pres-
sure is lowered, for example when steam traps discharge
condensate or when water is released from a boiler during
the blowdown process. This allows the resulting flash steam
to simply vent off and is very energy wasteful – as well as be-
ing a potential eye-sore.
Flash steam is the same kind of steam that is generated in a
boiler and as such is just as valuable as boiler steam for use
in low pressure steam heated process plants that is used for
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CLICK AND LEARN ABOUT FLASH STEAM IN MINUTES
Learn the benefits of recovering flash steam, how it is done and how flash steam can be applied
elsewhere in the plant to maximize overall efficiency. Click button to visit this tutorial on the web.
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Spirax Sarco was recently presented a Commen-
dation of Excellence award by the South Carolina
Chamber of Commerce for exemplary top safety
records at its two sites, located in Blythewood.
Kris Brown, Safety Environmental  Training
Supervisor, said, “Receiving this award from the
Chamber of Commerce is a great honor. This is
proof of everyone's dedication to improving our
safety culture.”
On March 19, 2015, the South Carolina Chamber
of Commerce recognized business leaders and
employees from across the state at their annual
Safety Awards luncheon. The awards were given
to companies and organizations who achieve a
commendable lost workday case rate during the
2014 calendar year. This includes any occupational
injury or illness that results in an employee being
unable to work a full assigned work shift. n
TOP
SAFETY
AWARD
RECEIVED
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DO YOU
HAVE A
SKILLS
PROBLEM?
Speaking of skills development (as we did on this page last
month), have you thought about your own skills development
lately? As important as it is to worry about the skills of those
who work for you, don’t forget about yourself.
Our experience with thousands of plant engineers over the
years tells us that technical skills are pretty much a given in
this profession. On the other hand, plant engineers need an
array of nontechnical skills to be successful, and these are
the ones that tend to be neglected.
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“Public speaking” is a frightening experience for most of us. But few skills
can serve you better in a world that depends on leaders of teams, committees,
departments, and all manner of groups.
Here are some of the skills that plant engineers need in
addition to their technical expertise.
The ability to communicate technical information to
nontechnical people.
Technical information is often lost on people without a techni-
cal background. To promote your ideas –and yourself—learn
to express yourself in language that others can understand.
The ability to make presentations before a group.
“Public speaking” is a frightening experience for most of us.  
But few skills can serve you better in a world that depends
on leaders of teams, committees, departments, and all man-
ner of groups.
The ability to communicate effectively in writing.
Engineers are not known for the writing ability, yet clear, ac-
curate, and correct writing is one of the most important skills
you can master. An inability to write concise, understandable
documents is a roadblock to achievement.
An understanding of financial management.
Like it or not, you are or will be involved in the financial
management of your plant or company. You need to
know and appreciate how your plant creates a return on its
assets and how the assets under your control relate to the
total business.
A working knowledge of legal matters.
Plant engineers are forced to deal with any number of laws,
regulations, statutes, codes, contracts, and agreements. At
the very least, you need to know when to ask for help.
Well-developed “people” skills.
More than most other types of engineers, plant engineers
must be able to work with a wide variety of people in a broad
range of circumstances.  As supervisors, managers, team
leaders, trainers, negotiators, liaisons, etc., etc., plant
engineers find themselves constantly interacting with others.
The list could go on. But you get the idea. In the rust to
develop your employees’ skills, don’t ignore your own. n
Richard L. Dunn, Editor, Plant Engineering Magazine
Content provided by Plant Engineering Magazine.
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Los Angeles, CA
Houston, TX
Chicago, IL
Allentown, PA
Columbia, SC
Are you looking to expand your knowledge and/or sharp-
en your skills in a particular area of steam systems? Do
you have certification requirements you need to meet?
There's a wide variety of training opportunities at five
GET MORE FROM STEAM, WE’LL SHOW YOU HOW
Click on city
to see available
classes and dates.
CEU credit may be obtained for various courses. Confirm CEU credit offering with Training Coordinator at time of payment.
of our world class training centers throughout the USA.
Whether you're an engineer, project manager, or even fa-
cilities and operations personnel, we have training classes
to suit your needs. n
LIMITED SEATING, BOOK TODAY!
Classes from May – July, 2015.
Click button to go online and register.
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In each issue of SteamNews we try to give some practical and useful tips to help you
maintain and improve your own steam system. But we’d like to hear about your own. If
you have any steam system energy saving tips, please let us know and we’ll pass it on. n
Email your tip to us at spiraxinfo@spirax.com.
TELL US YOUR TIP
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OUR NEW WEBSITE HAS ARRIVED
We are pleased to announce that our new website is now available, helping us
to share our knowledge and expertise with you.  We have used the feedback from
conversations with our customers to build a site more in tune with their needs.
www.spiraxsarco.com/global/us
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What is new?
The upgrade not only includes a fresh new look, but also a
vastly improved navigational experience, new multimedia
content and improved search functionality. A ‘mega-nav’
facility will allow you to easily browse the website from the
top level pages, quickly drilling down to discover relevant
resources and information. Our new search functionality
will also enable you to quickly pinpoint the correct capabil-
ity, product or page.
What hasn’t changed?
All your favorite material is still available. Please follow
the links below, making sure you add them to your favorites
for next time. Spirax Sarco Homepage, Steam and Con-
densate Loop Book, Product Sizing Suite, Steam Tables,
Steam Tutorials, CAD Library, Calculators
New pages you may wish to bookmark
Capabilities, Industries, Services, Products
FOR MORE INFORMATION
To have your Spirax Sarco website user experience visit
www.spiraxsarco.com/global/us today! n
The upgrade not only includes a fresh new look, but also a
vastly improved navigational experience, new multimedia
content and improved search functionality.
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I
magine this scenario:  In a refinery in some part of the
world, an engineer struggles with an old and worn-out
mechanical flowmeter.  The rotor bearings are shot, and it’s
giving erratic readings.  He asks himself, “With a company
of this size, with all the money flowing through here, why
can’t we do some basic instrumentation upgrades?”
The questions of why companies spend money the way they do
and how they make investment decisions are complex in virtually
any company context, but they seem particularly opaque when
working in a large and diversified industry like oil and gas.  Why
are companies the way they are in this business, and are there
keys for working within them?  It’s complicated.
UNDERSTANDING  
TECHNOLOGY
       DRIVERS IN OG
	How and why do oil and gas producers make operational
	    decisions at production levels?  With such a large
and complex industry, can we make sense of it all?
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Let us pause for a moment and consider some of the elements that make it
all tick. These are interesting times for the industry as oil markets today
seem particularly mixed up and many producers find themselves in a difficult
financial situation, at least for the moment.
A fully integrated company in this industry has to deal with
everything from finding oil and getting it out of the ground to
putting it in your car. Names like BP, Shell, ExxonMobil, and
others encompass the entire range. Others are more selec-
tive and may only choose certain parts of the process such
as drilling or refining. There are similar situations in natural
gas production.
Let us pause for a moment and consider some of the ele-
ments that make it all tick. These are interesting times for
the industry as oil markets today seem particularly mixed up
and many producers find themselves in a difficult financial
situation, at least for the moment.
This article is the first of a series that will examine the in-
dustry in general, and then various segments one by one.
We’ll look at what producers are doing and how they are
undertaking projects to improve efficiencies and keep up
with a changing regulatory landscape. We’ll consider what
technologies are being adopted, where, and how propo-
nents make a compelling business case.
In many respects, oil and gas production and refining gave
birth to process industries as we know them. Turning bulk
quantities of crude oil into kerosene and eventually gaso-
line, diesel, and other products, set the pattern for chemi-
cal and petrochemical industries to come. Refineries are
among the oldest process plants we have, and the entire
production and distribution chain from well head to your
home's gas meter or filling station is arguably the most ef-
ficient and optimized activity on earth. The fact that it has all
developed to such a colossal scale around the globe over
the last 150 years makes it particularly impressive.
At the same time, growth in demand for the industry has ef-
fectively stopped in many developed markets such as North
America and Europe. Depending on which reports one be-
lieves, demand in China has likewise slowed or stopped,
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although actual numbers vary. Saudi Arabian
production policies to manipulate pricing not-
withstanding, demand slowdowns have had a
major impact on all markets. Whatever comes
out of the current situation, it’s safe to predict
the picture of how oil moves around the globe
will be different going forward.
The Fundamental Things Apply
Oil and gas companies, like all rational, profit-
driven companies, are investor owned and
therefore all about making money. They want
to be able to sell their products for more than
they cost to produce. (There are national com-
panies in various parts of the world motivated
by politics, but those are a different animal.) When profit-
driven companies consider making investments in any part
of the production chain, they do it with an expected return on
investment or because they are compelled by some type of
regulation. The things that make decisions so complicated in
this context relate to scale and the number of choices.
So how do managers make investment decisions? Nichole
Decker is an energy sector strategist at UBS Wealth Man-
agement and started her career working at Texaco. In her
thinking, the big companies dominating the industry today got
that way because they generally made good choices.
“Companies do have to focus on the business,” she said.
“They also have to keep shareholders happy. The one goal
that the company and shareholders all benefit from is a re-
turn-oriented model where an oil company will take a look at
its portfolio, see how it sits into the competitive landscape,
and act accordingly. But they also have to ask how projects
within the portfolio compete with one another.
“The business decisions as to where to invest in one project
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While it may sound ironic, many companies in this industry don’t want to grow
in the traditional sense. Every barrel or oil or cubic foot of gas has to come out
of the ground somewhere, which makes reserves hugely important. Where will
it be coming from next week or five years from now?
or another, are driven by which will yield the highest return.
When they can generate cash flow, they can return that to
the shareholders through dividends and share buy backs,”
she said. “You see that now with a lot of growth going on,
but the dividends continue to increase and some of them are
buying back substantial numbers of shares.”
Growing Without Growth
While it may sound ironic, many companies in this industry
don’t want to grow in the traditional sense. Every barrel of
oil or cubic foot of gas has to come out of the ground some-
where, which makes reserves hugely important. Where will
it be coming from next week or five years from now? When
production is growing every year, it puts more pressure on
finding new reserves and that can be a very complex picture.
If traditional sources begin to decline, a company may have
to make difficult decisions about finding new ones.
Of course, companies in industries that are not growing still
need to improve profitability to keep shareholders happy and
support their stock price. Strategies include diversification,
squeezing more out of existing assets, and divesting less
profitable parts. Major integrated producers in this industry
have frequently taken the path of divestiture when it comes
to refining assets. We will look at refining in greater detail in
future installments, but for the moment let’s consider where it
fits in the larger picture.
Decker adds, “Refining is a notoriously low-margin business,
and it’s very cyclical. That’s the reason why many of the large
companies want to shed refining assets. They aren’t the
highest return assets in the portfolio. Upstream operations
generate much higher rates of return.”
The Role of Technology
Over the past five to 10 years, the oil and gas industry has
seen many technological changes ranging from drilling and
production (e.g., fracking, new offshore drilling techniques,
tar sands, exploitation, etc.) to refining and distribution.
The most dramatic changes have been upstream, and new
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sources of oil and gas have drastically changed the overall
production landscape.
Recent oil price changes have disrupted these markets dras-
tically. Some companies carry on with the assumption that
these conditions are temporary and will return to more typi-
cal levels. Others have optimized production to the point that
they can still earn a profit even with prices as they are now.
Whichever view one takes, it is clear that growth of uncon-
ventional oil and gas production has been driven by tech-
nologies that have drastically reduced the cost and time
necessary to drill new wells and get them into production. Im-
provements in well management have increased the amount
taken from each, extending well life and production.
How Companies Make Decisions
Let’s return to our hypothetical engineer mentioned at the
beginning. What are his prospects for seeing any improve-
ments in that facility? What would make the company decide
to undertake an instrumentation improvement program, or
any other investment opportunity?
Lee Swindler, oil and gas program manager for Maverick
Technologies, suggests that drivers aren’t all that hard to fig-
ure out: “A certain group of projects is safety driven. Another
group is regulatory driven, such as environmental controls.
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If you look at any business that supports both advanced solutions and capital
projects, you find those are counter-cyclical. When there are big capital projects,
there aren’t smaller optimization projects, and vice versa. For a refinery, those
resource decisions are generally made within the fence, not at higher levels.
Then there’s a third group of projects driven by profit. In lean
years, your budget is completely spent on just safety and
regulatory projects, so you don’t even get to the profit im-
provement stuff. In good years you still have to do the safety
and regulatory, but you have a little extra money to do some
profitability projects. Those are usually pretty easy to rank
based on your expected rate of return.”
Paul Bonner, vertical market leader for oil and gas for Hon-
eywell Process Solutions, sees the overall flow of capital
influencing decisions on a very practical level. “When mar-
gins are very tight and people aren’t investing capital, a lot of
companies will take on smaller improvement projects. That’s
when we see advanced process control or MES projects to
increase yields or improve energy efficiency. But those tie up
the available engineering resources.
“So when capital is available and a company is spending $1
billion on a new process unit, they have to find people, and
they want the best and brightest, so they often reassign all
the engineers who would have been working on those opti-
mization projects,” Bonner said. “If you look at any business
that supports both advanced solutions and capital projects,
you find those are counter-cyclical. When there are big capi-
tal projects, there aren’t smaller optimization projects, and
vice versa. For a refinery, those resource decisions are gen-
erally made within the fence, not at higher levels.”
Those points are important to understand, but how does a
company make decisions on choosing one area of invest-
ment over another within its portfolio? Does all the money
go to upstream ventures because that’s where management
sees the greatest profit potential? Bonner said that isn’t how
it works in practice.
“If you look into how an integrated oil company is structured,
I think they have a higher degree of separation that people
realize,” he said. “Their upstream operations are almost com-
pletely different companies than their downstream. Moving
capital or moving people from one to the other is like mov-
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ing to a different company. They’re different cost centers,
they have different vice presidents, so when they’re making
investment decisions, which are based on ROI, they’re be-
ing made at the highest corporate level. They aren’t made by
some guy at the production level who said, ‘Let’s not drill a
well today; let’s work on the crude unit.’”
Sometimes the answer is “no” to a project that seems like
a sure thing. Swindler saw that himself earlier in his career
working in the chemical industry. “There are times within a
company when you look at a project, and maybe there’s a
six-month payback, but you don’t have the money so you
don’t do it,” he said. “Plant personnel who are trying to oper-
ate and maintain the assets may consider it a stupid deci-
sion, and that can be a major frustration. In my experience,
it seemed like there were lots of good projects that never
got done.”
Other Forms Of Investment
So far we’ve discussed investment in the form of hardware
and software. But there are other elements to the picture: the
human side. Throwing technology at a problem is rarely a
solution in and of itself. The human capital side is a major el-
ement and can make a huge difference to a company’s suc-
cess. Swindler sees that kind of thing routinely in his travels
as an integrator.
“Refineries operate with a lot of outdated equipment, prob-
ably more so than any other type of plant because of the age
of their assets,” he notes. “But work processes are a mix. I’ve
seen plants with old equipment make impressive productivity
gains by applying better work practices. Where people make
a commitment, operational excellence can exist in some dif-
ficult environments.”
The ability to get people working toward common goals may
be the biggest key to success. “You need everybody on
board to create the efficiencies that these companies real-
ize,” said UBS’s Decker. “It’s a function of the human capital
you give to it, not necessarily the money you throw at it. Most
of the large companies will tell you that. They emphasize the
importance and contribution of each individual.” n
Peter Welander is a contributing content specialist for
Oil  Gas Engineering magazine.
Oil  Gas Engineering is a bi-monthly
publication by CFE Media that will cover
aspects of oil and gas operation, design
and distribution, with a specific focus on
helping oil and gas operations managers
operate their systems safely and more efficiently.
E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y
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YOUR ESSENTIAL GUIDE TO
STEAM ENGINEERING
T
his is the most comprehensive practical guide to the design and operation of
steam systems ever created.  At nearly 1,500 pages, The Steam and Condensate
Loop cover’s all aspects of steam and condensate systems, helping engineers to
optimize plant operations and save energy.
FIND OUT MORE!
Priced at just $129.00, this essential best
practice guide is available for ordering
from Spirax Sarco.
FEATURES:
•	16 Chapters
•	Comprehensive short modules
•	Comprehensive index
•	Equations summary section
•	Full color and illustrated throughout
•	Practical application techniques
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Click to Purchase!Click to Purchase!
LETS CONNECT SOCIALLY…
No matter what your social network preference is,
there’s a way for you to connect with Spirax Sarco!
Add Spirax Sarco USA to
your circle on Google+ and
share your insight on engi-
neering topics. ADD NOW
Follow Spirax Sarco on
Twitter for links to great ar-
ticles, communicate with our
staff and share your opinion
with us. FOLLOW US
Subscribe to Spirax Sarco’s
YouTube Channel to view
our latest products, services
and see various demonstra-
tions. SUBSCRIBE NOW
Join the Spirax Sarco net-
work on LinkedIn to be part
of the discussions that are
shaping the steam industry.
JOIN US
If you’re on Pinterest, won’t
you repin our content? You
never know, we may pin you
back! CHECK US OUT
Post on our Facebook page
and stay connected to industry
news, technical tips, and much
more. POST A COMMENT
E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y
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DID YOU KNOW
SPIRAX SARCO HAS ITS OWN
COMPANY STORE?
You can purchase an array of novelty items that proudly display the Spirax Sarco
brand and logo. The Spirax store is so convenient. It’s just a mouse click away
and can be accessed whether you are sitting in your office in the middle of
the day or in your pajamas in the middle of the night. You can find great
clothes and accessories available for purchase with your credit card via
the website. It only takes a few days to receive your order. For your
convenience a customer service number can be found on the
website if you should have any questions or need assistance
with your order. Happy Shopping! n
Click here to view the online catalog and make a purchase!
TECHNICAL
PROBLEM SOLVER
Real Technical Support Issues
and Their Solutions
Problem
Some months ago, we received an inquiry from a customer
in western Colorado regarding maintaining temperature in
an oil storage tank. The 500 gallon tank, located outside,
was fitted with a modulating control valve in order to main-
tain an approximate product temperature of 80˚F. The
steam was delivered to the tank at 100 psig and heat added
to the oil through a single tube coil. The condensate outlet
was fitted with a thermostatic steam trap. The problem the
customer was having was that the temperature was not
getting to the set-point of 80˚F.
Have a problem?  Simply send your question to the Technical Problem Solver:
Spirax Sarco, Attn: Tracy Britt, 1150 Northpoint Blvd., Blythewood, SC 29016 or email
us at spiraxinfo@spirax.com.
Kindly indicate if you do not wish to have your name and/or your company’s name published. We reserve the right to edit the
question or choose not to publish them. If your question is published, you will receive a gift!
Solution
After review of the condensate pipe temperature gradient, it
was determined that the thermostatic steam traps were back-
ing up with too much condensate and not allowing the coil to
heat.  It was suggested in order to prevent failure by freezing
to replace the thermostatic trap with a mechanical trap. The
trap was a float and thermostatic type and was combined with
a liquid expansion trap.
E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y
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STAY DOUBLY SAFE
Make sure you are protected during maintenance by using
double block and bleed isolation. Double block and bleed
enables a section of plant to be safely isolated for maintenance
without having to shut down the entire system. n
STEAMTIP OF THE MONTH
LEARN MORE
To learn more about this steam tip, write to Steam Tip of the
Month #16, Attn: Tracy Britt, 1150 Northpoint Blvd.,
Blythewood, SC 29016 or email us at spiraxinfo@spirax.com.
E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y
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TELL US HOW TO MAKE OUR NEXT ISSUE
EVEN BETTER AND WIN A PRIZE!
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survey today for a chance to
win a Fitbit Charge!
I
n our ongoing efforts to make SteamNews a valued
resource for anyone in Steam System management,
we hope you will take a moment to complete our
readership survey.  Let us know what you think so
we can make future issues even more interesting
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E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y
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FREE DOWNLOAD –
STEAM TOOLS MOBILE APP
This App provides customers and sales engineers access to key calculations when identifying
the right steam tools for the job - all in the palm of their hand.
Simple to use, the app enables quick and easy access to Steam Tables and Saturated Steam Pipe Sizing
tools, helping to size a pipeline without the need for an internet connection. Perfect for steam engineers
on the go! To enhance the feature settings, both tools offer the output of this data into a range of different
standardized units.
Also within the app are links to our world leading
steam engineering tutorials, comprehensive
product literature catalog, international website
and YouTube channel.
App highlights include:
•	 Supports multiple languages
•	 Temperature units in °C, °F or K
•	 Default output units Metric and Imperial
•	 Input and Output data available in barg,
a, kpag  abs and psig  a
Download today for Android and iPhone devices
via the Google Play and the Apple Store now! ■
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SteamNews_Vol5_No2

  • 1. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y Why download the SteamNews App? n Would you like to read one of our past issues? Each new issue will download with more back issues and special resources regularly. n Be the first to receive SteamNews once it is released. No longer will you have to wait for your pdf issue to hit your mailbox. You'll be alerted right away when the next issue hits the store. No iPad yet? Don’t worry, you'll still be able to download our pdf version! Proceed to SteamNews
  • 2. volume 5 no 2 FOCUS ON: OIL, PETROCHEMICAL AND CHEMICAL INDUSTRIES E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y NEWSNEWSwww.spiraxsarco.com/global/us
  • 3. NEWSCONTENTS TOP SAFETY AWARD RECEIVED LET'S CONNECT SOCIALLY… DO YOU HAVE A SKILLS PROBLEM? STEAM SYSTEM TRAINING WIN A FITBIT CHARGE! TELL US YOUR TIP UNDERSTANDING TECHNOLOGY DRIVERS IN OG TECHNICAL PROBLEM SOLVER STEAMTIP OF THE MONTH DOWNLOAD A FREE APP! STEAM TRACING KEEPS LUBE OIL FLOWING INDUSTRY TREND TALK EDITOR'S NOTE EDUCATIONAL NEWS BRIEF INSTANT KNOWLEDGE POLYMERS PLANT COMPOUNDS SIX-FIGURE SAVINGS WITH PROPER STEAM TRAPS GET COST SAVINGS IN A FLASH CLICK AND LEARN ABOUT FLASH STEAM QA: IS OPEC INFLUENCING THE U.S. SHALE MARKET? 2424 FREE – STEAM TOOLS MOBILE APPE X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 3 of 49 44 55 1616 1111 1919 2424 2121 2929 4444 3030 3232 3333 3636 4646 4747 4949 4848 2727 2828
  • 4. C ommonly, attention is given to a plant’s steam tracing system only when maintenance is re- quired. Process plants that use steam tracing to protect their piping from the effects of low tem- perature events or to just maintain their process liquid integ- rity, sometime forget the basics of good design practices. In this issue of SteamNews, our steam experts explain the basics of sizing and installing external line tracing and also relate those practices to offering solutions to a Northeast- ern U.S. refinery. With this being our Oil and Petrochemical focused issue, Spirax Sarco’s own Neil Davies offers insight into how refineries must now utilize the very best skills and expertise of their equipment supply partners to successfully compete and win domestic and export business. Matthew Jurecky, GlobalData’s head of Oil and Gas Research and Consulting, explains OPEC’s influence and impact to the U.S. Shale market and how it impacts investment in oil and gas technologies. We wrap this issue up with an explanation of the complexities involved when oil and gas producers make operational decisions and spend money the way they do. Understanding that just throwing “technology” at a problem is rarely a solution in and of itself. The “human” capital side of investment can help make a huge difference when apply- ing better work practices. Becoming an actual partner to an oil and gas supplier shows commitment to their operational excellence initiatives especially in difficult production environ- ments. I hope you enjoy this special Oil and Petrochemical issue of SteamNews. n Tracy Britt Marketing Communications Coordinator for Spirax Sarco EDITOR'S NOTE A LOOK AT THE OIL, PETROCHEMICAL AND CHEMICAL INDUSTRIES E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 4 of 49
  • 5. Industry Trend Talk USING STEAM TRACING FOR PROCESSAPPLICATIONS O ften, the temperature of process liquids being transferred through pipelines must be main- tained to meet process requirements, prevent thickening and solidification, or simply to protect against freeze-up. This is achieved with jacketed pipes or by attaching one or more tracing lines (carrying a heating me- dium such as steam or hot water) to the product’s pipeline. In these applications, steam usage may be relatively small, but the tracing system usually is a major component of the steam installation and the source of many problems. While no single article can address all of the contingencies affecting a steam tracing system, the following guidelines provide an overview of items to consider. Only external tracing is addressed because this is the area most likely to cause difficulties when no existing experience is available. External tracing is simple, and, therefore, inexpensive to in- stall and fulfills the most processes’ needs. External Tracer Lines One or more heat-carrying lines, sized from 0.375 to 1” normal bore, are attached to the main product pipe. Heat transfers to the product in three ways: conduction - through direct contact, convection, via currents in the air pocket formed in the insulating jacket, and through radiation. Trac- er lines can be constructed of carbon steel, copper or stain- less steel. If the product line is constructed of a particular material to accommodate the process fluid, the tracer line material must be selected carefully to avoid electrolytic corrosion at contact points. Heat tracing can be used to heat a variety of products. Understanding the basics of sizing and installing external line tracing will help you apply it effectively. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 5 of 49
  • 6. For short tracing runs – around short verti- cal pipes or valves and fittings – small bore copper pipes (perhaps 0.25” bore) may be wound around the product lines (figure 1). The layout should be arranged to provide a continuous fall along the tracers. (Note: Wrap around tracers should be avoided on long horizontal lines.) A run of even 100’ of 6” product line will require 500 to 600’ of wrap-around tracing. In this scenario, the pressure drop along the tracer would be high and the temperature at the end of the line away from the supply would be low. Indeed, the remote end of the tracer probably would contain only condensate, and the water’s temperature would fall as it continued to give up heat. Clip-On Tracers The simplest form of external tracer is clipped or wired to the product line. Maximum heat flow is achieved when the tracer is in tight contact with the product line; consequently, the securing clips should not be spaced wider than 12 to 18” on 03.75” tracers; 18 to 24” on 0.5” tracers; and 24 to 36” on 0.75” and larger tracers. The tracer pipes literally can be wired on, but to maintain close contact, 0.5” galvanized or stainless steel bands are better. One practical application method is a packing case banding machine. Where racers are carried around bends, three or more bands should be used to ensure that good contact is maintained. Where it is not possible to use bands as on valve bodies often annealed stainless steel 18 gauge wire is an alternative. With either band material, remember to consider any special needs to avoid external corrosion or electrolytic action. Welded Tracers Where the temperature difference between the tracer and the product is low, the tracer can be welded to the product line. This can be done either with short-run welds or with a continuous weld for maximum heat transfer. Welded tracer sometimes is laid along the top of the pipe instead of the bottom, greatly simplifying installation. Advocates of this method claim that the location does not adversely affect heat transfer rates. Figure 1: Small bore tracing lines can be wrapped around vertical product lines, but this method should not be used on long, horizontal runs. External tracing is simple, and, therefore, inexpensive to install and fulfills the most processes’ needs. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 6 of 49
  • 7. Heat Conducting Paste For maximum heat transfer, a heat conducting paste can be used to fill the normal hot air gap (figure 2). The paste can be used with any of the clipping methods, but the sur- face must be wire-brushed clean before applying the past. Insulation If the product being heated is temperature sensitive, it is important to avoid local hot spots on the pipe by intro- ducing a strip of insulation material – fiberglass or min- eral wood with packing blocks constructed of inert ma- terial to maintain spacing – between the tracer and the product pipe. In every installation, insulation should cover both the prod- uct line and tracer, but the air space must remain clear. This can be achieved three ways (figure 3) • Aluminum foil or galvanized steel sheet can be wrapped Lagging Product Tracer Heat Conducting Paste Figure 2: Heat conducting paste can be placed in the air gap to improve heat transfer. Insulation should be used over the tracer line and product pipeline. Three basic meth- ods are used: Aluminum foil (A); preformed, sectional insulation (B); and preformed, sectional molded insulation (C). Figure 3 A B C Lagging Product Tracer Lagging Tracer Aluminum Foil Wire Netting Product Lagging Tracer Product E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 7 of 49
  • 8. around the line and tracing; then, insulation is applied over the sheet or foil. Alternatively, small mesh galva- nized wire netting can be used instead of metal sheet. • Sectional insulation preformed to one or two sizes larger than the product main can be used. One disadvantage is this insulation can be easily crushed. • Preformed sectional insulation designed to cover both product line and tracer can be used. Preformed rigid sec- tional insulation usually is preferred to plastic material be- cause – rigid insulation retains its thickness and efficiency. In all cases, the insulation should be finished with water- proof covering: Most insulation is porous, and it is useless as heat-conserving material if it is allowed to absorb water. It also may need to be protected from mechanical damage. Sizing External Tracers The goal of any steam tracing or jacketing installation is to maintain the line’s contents at a satisfactory working tem- perature under all conditions of low ambient temperature – with adequate reserve to meet extreme conditions. On some exposed sites, for example air temperature can be reduced by 4 degrees when 20 mph wind is present. These are circumstances that must be considered when studying the tracer line requirements. Information about prevailing conditions usually can be obtained from the inter- net or local weather forecast. External tracer sizing most often is accomplished based on the experience of a given company with a particular process but do not necessarily apply elsewhere. There also are widely differing opinions about layout. One rule of thought states that multiple tracers should be positioned below the product’s center line while another states that it is preferable to space tracers equally around the line. Then, there are those who will endeavor to size their trac- ers from 0.375. 0.5, 0.75 or 1” or larger pipe. But another school of thought states that because tracers have only There also are widely differing opinions about layout. One rule of thought states that multiple tracers should be positioned below the product’s center line while another states that it is preferable to space tracers equally around the line. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 8 of 49
  • 9. minute contact with the product line, much more even heat distribution will result if multiple 0.5” tracers are used. If this rule is followed, Table 1 can be used for most average installation requirements. Type A would suffice for most fuel oil applications and for those lines carrying acid, phenol, water and some additional chemicals. But in some cases, spacer tracing (insulation between the product line and the tracing) would be employed. Steam pressure is important and must be specified accord- ing to the product temperature required. For noncritical trac- ing (Types A and B in Table1), a steam pressure of 50 psi generally would be suitable. For Type C, a higher pressure and hot discharging trap may be required. Jacketed Lines Ideally, jacketed lines should be constructed in no more than 20’ lengths with condensate removed from each section. Steam should enter at the highest end so there is a natural fall to the condensate outlet. When it is impractical to trap each length, several sections (up to a combined length of 80 to 100’) may be joined in moderate climates. In extremely cold parts of the world, 40’ should be the maximum. When linking sections, avoid connecting solely through the bottom loop. This can only handle condensate. The standing water impedes the free flow of steam (Table 2, next page). Type A Type B Type C Noncritical General Frost Protection, or Where Solidifi- cation May Oc- cur at Temper- atures Below 75°F (24°C) Noncritical Solidification May Occur at Temperatures from 75 to 150°F (24 to 66°C) Critical Solidification May Occur at Temperatures from 150 to 300°F (66 to 149°C) Product Line Size No. of 0.5 Tracers No. of 0.5 Tracers No. of 0.5 Tracers 1” 1 1 1 1.5” 1 1 2 2” 1 1 2 3” 1 1 3 4” 1 2 3 6” 2 2 3 8” 2 2 3 10 to 12” 2 3 6 14 to 16” 2 3 8 18 to 20” 2 3 10 Table 1: Number of 0.5 Tracers Used. Depending on the product pipeline’s service, as many as 10 tracers may be required to maintain process temperature. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 9 of 49
  • 10. Product Line Jacket Diameter Steam Connection 2.5 (65 mm) 4 (100 mm) 0.5 (15 mm) 3 (80 mm) 6 (150 mm) 0.75 (20 mm) 4 (100 mm) 6 (150 mm) 0.75 (20 mm) 6 (150 mm) 8 (200 mm) 0.75 (20 mm) 8 (200 mm) 10 (250 mm) 1 (25 mm) 10 (250 mm) 12 (300 mm) 1 (25 mm) Although a 0.5” condensate outlet usually is adequate, an outlet that is the same size as the steam connection often is used to simplify installation. Positioning In horizontal runs, the steam will generally flow parallel to the product line. As far as possible, steam should enter from the high end to allow free flow of the condensate to the low end; it should be self-draining. It is generally considered preferable to center one tracer on the bottom of the line or place two tracers at 30° or three tracers at 45°. Where multiple 0.5” tracers are used, they should be arranged in loop fashion on either side of the product line (In vertical lines, the tracers would be spaced uniformly.) The maximum permissible tracer length depends, to some extent on the size and initial steam pressure, but as a gen- eral rule, 0.375” tracers should not exceed 60” in length, and the limit for all other sizes should be 150’. Bends and low points in the tracer should be avoided. Expansion Tracer line expansion often is over looked. Naturally, the steam-heated tracer will tend to expand more than the prod- uct line. Where the tracer passes around flanges, the bends are quite adequate to accommodate expansion. But, for long runs of uninterrupted tracer, it is essential to provide for ex- pansion by forming a complete loop in the tracing line. Understanding the components of a steam tracing system is essential for effective installation and operation. Contact a reputable supplier for help when designing your system to ensure that your product will be effectively heated. n Table 2: Number of 0.5 Tracers Used. This general guide will help you size jacketed line connections. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 10 of 49
  • 11. HOW CAN U.S. REFINERIES HANDLE THE GROWING GLUT OF U.S. CRUDE OIL PRODUCTION? A t the time of writing the price of WTI crude is approximately $51 per barrel. This com- pares to the price of near $100 per barrel in August 2014. This is a 50% price drop in less than 6 months. For at least the past 5 years U.S. crude oil production has been increasing; the result of new shale oil production emerging from horizontal drilling and hydraulic fracturing. The number of oil rigs drilling for crude peaked in 3Q 2014 just as the price of crude oil began to fall. Each month it seems U.S. crude oil production continues to break pro- duction records. Since fourth quarter 2014 the effect of re- duced crude pricing has had a consequence on the num- Educational News Brief By Neil Davies, Business Development Manager - Fuels Chemicals ber of oil rigs drilling. Month on month the oil rig count has been reduced from a peak of around 1,609 to the present number of around 760, at time of writing. Even with this re- duction of oil rigs actively drilling U.S. crude production has been continually rising. Only this week has the U.S. Energy Information Administration forecast the first monthly slip in oil production for May 2015, in the past 4 years. As U.S. production continues the availability of storage for this crude production are being depleted. Central storage areas such as Cushing Oklahoma is forecast to reach its “glass full’ status with only months to go. As we move clos- er to filling Cushing other upstream storage facilities are being used. Contingent strategies through offshore tank- E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 11 of 49
  • 12. ers and onshore tanks and terminals are helping to ease the load while waiting for futures pricing to rise. Federal Law prevents the export of U.S. crude oil without some processing having taken place on U.S.A. soil, with only a few exceptions. Canada, an exception, is purchasing U.S. Light Tight Oil (LTO) along with natural gas; while Mexico is presently negotiating a “swap” of Mexican heavy crude for American LTO. Slowly the crude oil export ban is being mitigated, though there are no expectations that a blanket reversal will occur anytime soon. In line with the export ban, refiners are operating at near record capacity utilization rates. Those rates have been recently recorded at over 92%, the highest seasonal rates since 2005. Capacity expansions specifically targeted at processing LTO are in process. Initially the least cost options, which may also be initiated quickest have been approved. Stabilizers and condensate splitters are being built to perform a single distillation process, which there- Federal Law prevents the export of U.S. crude oil without some processing having taken place on U.S.A. soil, with only a few exceptions. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 12 of 49
  • 13. …steam systems of large oil and petrochemical facilities are like arteries; supplying the lifeblood to the plants main processes; heating the limbs of the facility ensuring product flows smoothly through the plants pipework. Steam leaks, poor condensate recovery and poor condensate removal from heat transfer equipment reduces the arteries capabilities to effectively supply energy throughout the plant. fore allows the resulting petroleum products to be exported in line with U.S. regulations. Other options for refiners to process greater quantities of LTO are to add hydroskim- ming capacity, used to distill the light crude into reformer and hydrotreater units for further processing. The least cost option, and that which has already taken place, is to improve utilization rates and debottleneck where appropri- ate. Downstream of refineries petrochemical plants have also seen increased throughput and capacity utilization. Increased production from highly complex refineries are providing increased feedstock for the industry to utilize. At these record capacity utilization rates refineries must ensure that operations are running efficiently, reliably and safely. Plant availability in times of high utilization rates are essential to sustaining production. Productivity should be maximized to support the ongoing increased production of LTO. At today’s refineries, petrochemical plants, production processes, utilities, and other associated systems, they must all work together in harmony. When focusing on utili- ties, the steam systems of large oil and petrochemical fa- cilities are like arteries; supplying the lifeblood to the plants main processes; heating the limbs of the facility ensuring product flows smoothly through the plants pipework. Steam leaks, poor condensate recovery and poor condensate removal from heat transfer equipment reduces the arteries capabilities to effectively supply energy throughout the plant. High utilization rates require production to continue unin- terrupted, and with that comes a requirement to operate reliably while increasing uptime and mean time between failures (MTBF). Often the steam trap is perceived as a component which may be locked-out or by-passed to over- come a failure or to provide production availability. In real E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 13 of 49
  • 14. terms however, the steam trap is a component which pro- vides condensate removal or highlights a process or sys- tem problem, which requires additional analysis to resolve and improve the heat transfer system. Only when a prob- lem is highlighted can it be analyzed to establish the root cause of the failure, and in turn a complete and long term reliable solution be introduced. Utility and steam system expertise allow refineries and petrochemical plants to create reliable and efficient sys- tems, helping to reduce downtime while also improving productivity, product quality and product yield. Identifying and reducing opportunities for waterhammer to occur will help prevent major outages and large scale safety prob- lems. Slip hazards caused by condensate leaks may freeze during winter. Steam leaks with high noise levels, scalding and burn hazards all provide opportunities for OSHA and compliance incidents. Attending to these type of typical site problems can yield significant cost avoidance. As utility systems are modified to, enhance safety and reliability, the systems Energy Intensity Index (EII) will be improved. Modifications focused on reducing energy consumption and introducing methods to re-use excess low pressure and exhaust steam should be found. Re- ducing and re-using energy will not only reduce a plants EII but will also help reduce emissions. Although not heavily regulated, when compared to other constituents CO2 and other emissions are a key focus in environmen- tal and sustainability programs. Plant, utility and energy managers, along with reliability and process engineers must now work hand in hand to create best in class man- ufacturing procedures. Production facilities no-longer compete in a local market place. They must now become leaders with global com- petitors, who may have increased opportunities to employ low-cost labor and operate in areas which have a lower level of environmental regulation. Often competitors have newly designed and recently built plants employing the very latest technologies, and may even be subsidized by local governments. Only by utilizing the very best skills and expertise to find win-win solutions may oil refineries and chemical plants successfully compete and win do- mestic and export business. Targeting focused plant programs on safety, availability, reliability and production will greatly affect the output and competitiveness of each individual plant. Through align- ment with specialty companies, who provide expertise and E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 14 of 49
  • 15. Targeting focused plant programs on safety, availability, reliability and production will greatly affect the output and competitiveness of each individual plant. Through alignment with specialty companies, who provide expertise and solutions, oil refineries and chemi- cal plants can find many opportunities for successful partnerships to improve utility and steam systems. solutions, oil refineries and chemical plants can find many opportunities for successful partnerships to improve utility and steam systems. Ensuring high capacity utilization rates are both possible and sustainable and will help our nation move toward processing all the U.S. Light Tight Crude Oil from within its borders n E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 15 of 49
  • 16. STEAM TRACING KEEPS LUBE OIL FLOWING TO LOADING RACK AT NORTHEASTERN REFINERY O ften, the classic solution proves to be the optimal choice, from both technical and business standpoints. Such was the ex- perience of a New Jersey refinery, where steam tracing became the technology of choice for precision low-temperature control, together with reliable overheating protection. To control tempera- ture within feed lines from lube oil storage tanks to load- ing racks, the refinery considered and rejected electric temperature tracing on the basis of higher cost, a history of reliability trouble and difficulty of troubleshooting. Facility Description The refinery, with a capacity of 130,000 bbl/day of crude oil, recently upgraded its product from lube oil base stock to high-grade finished lube oils. They then marketed both bulk and blended product and a proprietary line. As part of the upgrade, the refinery undertook a $9 million conversion from bulk tank farm operations to loading rack operations. This facility loads rail cars and tanker trucks for transport to packaging operations and wholesale customers. The Loading Rack Project The refinery employed Spirax Sarco, Inc., to design and implement a steam tracing system from its tank pumps through the loading rack to ensure economical, reliable product transfer year round. The refinery turned to steam tracing for the precision temperature control necessary to keep viscosity to a minimum without overheating and damaging the product. Basic Control Approach Control for the refinery’s steam tracing system is provided by Spirax Sarco direct acting steam control valves which maintain line temperature at 110°F with 50 psi steam. Since this supply is capable of heating the product to a destructive 300°F, control provided by the valves has to be precise. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 16 of 49
  • 17. Another concern in the system design was to guard against excessive heat transfer from the tracer to the product during no-flow conditions. Spirax Sarco met this concern by partnering with a company who provided pre- insulated tubing for uniform, controlled heat transfer to the transported product. A third cornerstone of the control approach is use of Thermo-Dynamic steam traps with strainer connectors. They provide the reliable steam trap operation essential to precise temperature control. System Description The upgraded refinery has eight main storage tanks, each heated by dry steam provided by Spirax Sarco separators and control valves feeding prime surface heat exchang- ers. Six pumps serve six, 6-in. steam-traced main lines feeding two elevated loading stations, one for rail cars; the other serving two tank trucks simultaneously. Comprising a quarter mile of piping in all, each main line has 12 tracers; 6 running east and 6 west. Each traced run is no longer than 200 ft. Steam tracing extends to mass flowmeters at the loading stations. Compressed air purges the lines downstream of the flowmeters to evacu- ate all product. Spirax Sarco hose cleanup stations mix steam with water to aid in dealing with any spillage. Troubleshooting And Maintainability Factors With troubleshooting and low-cost maintenance as criti- cal factors in the selection of steam tracing, Spirax Sarco employs in-line isolatable and repairable components throughout the installation. In-line quick change traps enable change-out in minutes instead of hours. Spirax Sarco manifolds with integral piston valves provide rapid tracer line isolation in the event of a steam leak. The numbering of every oil feed line enables rapid identifica- tion and isolation. The Results The refinery obtained accurate overheat protection using the Spirax Sarco control scheme in combination with the partnership who provided pre-insulated tubing. Addition- ally, the lowered viscosity of the safely heated oil has re- duced pumping load and accelerated bulk loading opera- tions year round. According to the refinery’s senior project engineer, “We needed a tracing system that would accu- rately maintain lube oil temperature from the tank farm to the loading rack, and Spirax applied its products and ex- pertise to ensure the goal was met.” Steady refinements to proven technology can often pay dividends in the real world when compared to cutting-edge methods. No better example exists than the low-mainte- nance, flexible low-temperature control afforded by prop- erly designed steam tracing. n E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 17 of 49
  • 18. Executive Recruiting for the Energy Market “BIC had efficient processes and highly qualified candidates, both of which were instrumental in making the investment in a strategic position an informed decision.” — Bret Pardue, CEO and President, USA Environment “BIC Recruiting has a very strong candidate database exclusive to the industrial services industry.” — Danny Donaldson, Group President, The Brock Group “BIC Recruiting knows the industry better than anyone and has a broad network we could tap into. The BIC Recruiting team did an outstanding job for us and I would definitely recommend them to my peers.” — Sandy Scott, CEO, Sprint Safety www.bicrecruiting.com For a confidential C-level executive search or placement of management or sales positions, please call Thomas Brinsko or Hazel Kassu in Houston at 281-538-9996 or visit www.bicrecruiting.com. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 18 of 49
  • 19. Here’s a brief checklist to get you started: • Check that all statutory tests of boiler water level alarms are being performed and recorded properly. • Consider installing a boiler water high level alarm. Too high water levels in the boiler can cause wet and dirty steam to contaminate your process. • Check that the feedtank is being heated to the right temperature. Heating the tank to 185°F or 194°F will drive off dissolved oxygen, saving water treatment chemicals. INSTANT KNOWLEDGE – HERE COMES SUMMER SHUTDOWN – ARE YOU READY? The summer shutdown season will soon be upon us, but while everyone else heads out on vacation, maintenance staffs know this is a great time to get important jobs down without worrying about disrupting normal plant operations. Careful planning is the key to making the most of this valuable opportunity. Use our checklist to help you plan your summer shutdown work program. Start in the boiler house… The boiler house is the engine of any steam system. Make sure yours is in good working order. Check that vital maintenance and testing is being regularly performed. It’s also a good idea to look for ways to improve boiler house operation. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 19 of 49
  • 20. • Is a deaerator head fitted to the feedtank? If not, fit one because it efficiently combines cold makeup water, flash steam and hot condensate and can save you energy. • Check the feedtank is vented to prevent pressure build-up. Consider fitting a maintenance-free stainless steel vent head. • Review water treatment records. Look for hardness slippage through the water softener, contamination of the condensate return and correct chemical dosing. • Check for excessive steam venting from the boiler feedtank or condensate return set. It could indicate leaking steam traps. • Check the rate of boiler blowdown. If automatic blowdown is not fitted, consider installing a system as it will almost certainly be more efficient than manual control. • Check the boiler gauge glass is not damaged. If it is, replace it immediately. Check these items as well: • Carry out a steam trap survey to assess steam traps. • Check flowmeters are correctly calibrated. • Check condensate pumps are working correctly. • Check for any loose or missing lagging. • Is the condensate being returned to the boilerhouse? • Check flanges and stop valve steam for leaks. • Check that steam separators are installed prior to plant control equipment to ensure dry steam is delivered to the process. • Check for leaks from vent pipes of safety valve. • Check that high limit protection devices operate at correct temperature. • Check pipe supports that may have worked loose. • Check pressure gauges for damage. Do they need calibration or replacement? • Ensure control valves are shutting off properly and not hunting. Recalibrate the positioner when line are cold. n LEARN MORE To learn more, contact a Spirax Sarco sales representative today. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 20 of 49
  • 21. QAMatthew Jurecky is GlobalData’s Head of Oil Gas Research and Consulting. He has multiple years’ experience working internationally in energy research and consultancy for firms Wood Machenzie and IHS. During this time, he engaged in a variety of projects, including offshore bid round strategy formulation for an independent, upstream acquisition screening for an international downstream company, and portfolio rationalization for South American national oil company. Mr. Jurecky has an MBA from Texas AM University and a bachelor’s degree in Business Administration from Southern Methodist University. Visit www.globaldata.com for research on the oil gas industry. Q: How has OPEC’s decision not to lower crude oil production targets impacted U.S. shale market? Do you see OPEC’s manipulation of oil production impacting U.S. shale markets in the longer term? IS OPEC INFLUENCING THE U.S. SHALE MARKET? E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 21 of 49
  • 22. A: The Core areas of development in the major plays will continue to grow. However, at lower oil prices, additional capital to accelerate development will be more difficult to secure and many companies are dependent on this for continued development. Efforts to expand and test oil pro- duction outside the core area will generally stop, until costs come down far enough or oil prices rise to encourage further development. OPEC did not manipulate the market – they are competing in a global industry for market share just as Ford competes with Nissan or Boeing with Airbus. In the long term, U.S. shale markets could compete more directly with OPEC’s key customer. At this point, U.S. production is still generally displacing domestic imports from West Af- rica, which in turn is now having to sell its crude in Asia. The emerging strong oil industry across Mexico, Canada, and the U.S. is poised to challenge for global export market share. Q: Some are comparing the U.S. shale boom to the dot-com boom and predicting a similar bust. Do you think this is a fair comparison and how much does OPEC’s recent decision play a role here? A: The dot-com boom is not comparable to the shale boom. There is a tangible difference between producing and selling a commodity such as oil versus things like websites generat- ing no revenue. Futhermore, the core of the industry is still functioning and projected to grow at $50 a barrel of oil, where prices have stabilized. While it won’t grow as quickly, it is far from being a bust. OPEC isn’t relevant and they should not be expected to subsidize a foreign competitor. The ingenu- ity of the U.S. industry will continue to innovate and reduce costs, just as they have over the last 10 years. Wells that cost $12 million five years ago are now worth $6 million and could be valued at $3 million in another five years. This will contin- ue driving market growth as long as people are using oil. Q: If shale producers are cutting back, or will be in the near term, how does that impact investment in oil gas technologies (pumps, flowmeters, valves, etc.)? A: Across the board there will be a need to tighten costs, so margins on selling these items will shrink and companies will struggle, primarily those servicing smaller companies or OPEC did not manipulate the market – they are competing in a global industry for market share just as Ford competes with Nissan or Boeing with Airbus. In the long term, U.S. shale markets could compete more directly with OPEC’s key customer. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 22 of 49
  • 23. those operating on the fringes. Investment will be focused on improving the efficiency of these technologies so that they are competitive. Q: Looking ahead five to 10 years, do you see OPEC’s influence diminishing, staying the same, or growing? A: OPEC is likely to continue along the same trend of hav- ing a diminished influence over the next 10 years. Production growth outside OPEC will continue to challenge the group, as well as the individual objections to policies from countries within the group. Q: Looking ahead five to 10 years, where do you see the U.S. shale industry compared to today? A: The U.S. shale industry has just gone through a massive growth phase. In 10 years the industry will be in a more ma- ture state and growth expectations will not be nearly as high, with production levels likely stabilized. n This article was originally published in the March 2015 issue of Flow Control magazine. U.S. Shale production is driving change in the global oil gas market, including OPEC's recent moves to improve its competitive position against shale oil. iStock0000498991882715x1810/Bob Ingelhart/iStock E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 23 of 49
  • 24. Investigating Cause And Effect A Spirax Sarco steam system assessment pinpointed the source of the problems: the steam traps. This particular pro- cess was equipped with balanced pressure thermostatic steam traps to drain condensate from the heaters. These types of traps are designed to cool the condensate below steam saturation temperature before opening. But that’s not what the PVA slurry heaters needed. The steam audit also determined that some of these traps were failing open, blowing live steam straight through. This made it impossible to maintain both heat exchanger steam pressure and design process temperature. Other thermostat- POLYMERS PLANT COMPOUNDS SIX-FIGURE SAVINGS WITH PROPER STEAM TRAPS O ptimizing energy and production efficiencies in process industries is essen- tial for remaining competitively and environmentally sustainable. A leading resin manufacturer knew exactly where to turn when processes in one of its Texas resin compounding facilities presented controllability challenges. Steam consumption in their large PVA slurry heaters continued to rise while throughput fell. Heating coils were fouling, product temperatures were not being met, and the rise in downstream condensate pressure was adversely affecting other processes. The system had to be shut down at least five times a year for cleaning. $ E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 24 of 49
  • 25. ic traps were backing up condensate into the heat exchanger coils which reduced the available heating surface area for the steam to heat the process. Both types of trap failures caused the control system to raise steam pressure in an effort to follow the heating load. This higher pressure, higher temperature and reduced heating surface caused the PVA slurry to adhere to the heat ex- changers and foul them rapidly. This one misstep, using the wrong type of steam trap, was the source of all the problems. Solutions Apply the Science of Steam Spirax Sarco recommended that the steam traps be replaced with float thermostatic traps (FT450 traps). Ideal for this application, this type of trap discharges condensate at steam temperature with no back-up or sub-cooling of the conden- sate. And an integral balanced pressure thermostatic air vent discharges non-condensable gases which improves heat transfer and reduces corrosion. The Spirax Sarco Energy Services Group pre-fabricated five FT450 steam trap stations with associated Spira-Tec steam trap monitoring devices and piping components off site to minimize the plant’s downtime during installation. Within two weeks, the turnkey project was completed to plant specifications and Spirax Sarco best practices. Formula for Success The results have been outstanding. Condensate is now be- ing drained effectively with no back up. Steam chest pres- sure is stable at design conditions, while steam consumption has been reduced by 1000 lbs/hr. Product no longer adheres to the heat exchanger surfaces, eliminating the need for re- peated system shutdowns for cleaning. And maximum pro- duction throughput and uptime have been achieved. With tight control restored over energy and processing effi- ciencies, officials at the plant also appreciated the fiscal ben- efits. Based on project cost and annualized energy and pro- ductivity gains, the plant has realized significant payback on the project with an ROI of 968% and gross annual savings of $800,000. n Based on project cost and annualized energy and productivity gains, the plant has realized significant payback on the project with an ROI of 968% and gross annual savings of $800,000. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 25 of 49
  • 26. To find out more visit www.spiraxsarco.com/global/us E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 26 of 49
  • 27. GET COST SAVINGS IN A FLASH space heating. Every pound of flash steam used is a pound of live steam that does not need to be supplied by the boiler. The advantage of recovering flash steam is relatively easy. Flash steam can be collected using a flash vessel. First con- densate enters the vessel. Inside the vessel’s chamber, flash steam separates from the condensate and passes out of the vessel so it can be used for heating something. The re- maining condensate is discharged through a steam trap and passed to the condensate recovery system to be piped away to the boiler feedtank. The potential savings is huge, with the installation of flash steam recovery equipment usually paying for itself in a mat- ter of months and the subsequent cost savings being en- joyed for years to come. n M any companies spend loads of money on advertising campaigns, promoting an envi- ronmentally-friendly brand image but it’s so puzzling why any would allow flash steam to vent from their plant. Flash steam is released from hot condensate when its pres- sure is lowered, for example when steam traps discharge condensate or when water is released from a boiler during the blowdown process. This allows the resulting flash steam to simply vent off and is very energy wasteful – as well as be- ing a potential eye-sore. Flash steam is the same kind of steam that is generated in a boiler and as such is just as valuable as boiler steam for use in low pressure steam heated process plants that is used for E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 27 of 49
  • 28. CLICK AND LEARN ABOUT FLASH STEAM IN MINUTES Learn the benefits of recovering flash steam, how it is done and how flash steam can be applied elsewhere in the plant to maximize overall efficiency. Click button to visit this tutorial on the web. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 28 of 49
  • 29. Spirax Sarco was recently presented a Commen- dation of Excellence award by the South Carolina Chamber of Commerce for exemplary top safety records at its two sites, located in Blythewood. Kris Brown, Safety Environmental Training Supervisor, said, “Receiving this award from the Chamber of Commerce is a great honor. This is proof of everyone's dedication to improving our safety culture.” On March 19, 2015, the South Carolina Chamber of Commerce recognized business leaders and employees from across the state at their annual Safety Awards luncheon. The awards were given to companies and organizations who achieve a commendable lost workday case rate during the 2014 calendar year. This includes any occupational injury or illness that results in an employee being unable to work a full assigned work shift. n TOP SAFETY AWARD RECEIVED E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 29 of 49
  • 30. DO YOU HAVE A SKILLS PROBLEM? Speaking of skills development (as we did on this page last month), have you thought about your own skills development lately? As important as it is to worry about the skills of those who work for you, don’t forget about yourself. Our experience with thousands of plant engineers over the years tells us that technical skills are pretty much a given in this profession. On the other hand, plant engineers need an array of nontechnical skills to be successful, and these are the ones that tend to be neglected. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 30 of 49
  • 31. “Public speaking” is a frightening experience for most of us. But few skills can serve you better in a world that depends on leaders of teams, committees, departments, and all manner of groups. Here are some of the skills that plant engineers need in addition to their technical expertise. The ability to communicate technical information to nontechnical people. Technical information is often lost on people without a techni- cal background. To promote your ideas –and yourself—learn to express yourself in language that others can understand. The ability to make presentations before a group. “Public speaking” is a frightening experience for most of us. But few skills can serve you better in a world that depends on leaders of teams, committees, departments, and all man- ner of groups. The ability to communicate effectively in writing. Engineers are not known for the writing ability, yet clear, ac- curate, and correct writing is one of the most important skills you can master. An inability to write concise, understandable documents is a roadblock to achievement. An understanding of financial management. Like it or not, you are or will be involved in the financial management of your plant or company. You need to know and appreciate how your plant creates a return on its assets and how the assets under your control relate to the total business. A working knowledge of legal matters. Plant engineers are forced to deal with any number of laws, regulations, statutes, codes, contracts, and agreements. At the very least, you need to know when to ask for help. Well-developed “people” skills. More than most other types of engineers, plant engineers must be able to work with a wide variety of people in a broad range of circumstances. As supervisors, managers, team leaders, trainers, negotiators, liaisons, etc., etc., plant engineers find themselves constantly interacting with others. The list could go on. But you get the idea. In the rust to develop your employees’ skills, don’t ignore your own. n Richard L. Dunn, Editor, Plant Engineering Magazine Content provided by Plant Engineering Magazine. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 31 of 49
  • 32. Los Angeles, CA Houston, TX Chicago, IL Allentown, PA Columbia, SC Are you looking to expand your knowledge and/or sharp- en your skills in a particular area of steam systems? Do you have certification requirements you need to meet? There's a wide variety of training opportunities at five GET MORE FROM STEAM, WE’LL SHOW YOU HOW Click on city to see available classes and dates. CEU credit may be obtained for various courses. Confirm CEU credit offering with Training Coordinator at time of payment. of our world class training centers throughout the USA. Whether you're an engineer, project manager, or even fa- cilities and operations personnel, we have training classes to suit your needs. n LIMITED SEATING, BOOK TODAY! Classes from May – July, 2015. Click button to go online and register. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 32 of 49
  • 33. In each issue of SteamNews we try to give some practical and useful tips to help you maintain and improve your own steam system. But we’d like to hear about your own. If you have any steam system energy saving tips, please let us know and we’ll pass it on. n Email your tip to us at spiraxinfo@spirax.com. TELL US YOUR TIP E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 33 of 49
  • 34. OUR NEW WEBSITE HAS ARRIVED We are pleased to announce that our new website is now available, helping us to share our knowledge and expertise with you. We have used the feedback from conversations with our customers to build a site more in tune with their needs. www.spiraxsarco.com/global/us E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 34 of 49
  • 35. What is new? The upgrade not only includes a fresh new look, but also a vastly improved navigational experience, new multimedia content and improved search functionality. A ‘mega-nav’ facility will allow you to easily browse the website from the top level pages, quickly drilling down to discover relevant resources and information. Our new search functionality will also enable you to quickly pinpoint the correct capabil- ity, product or page. What hasn’t changed? All your favorite material is still available. Please follow the links below, making sure you add them to your favorites for next time. Spirax Sarco Homepage, Steam and Con- densate Loop Book, Product Sizing Suite, Steam Tables, Steam Tutorials, CAD Library, Calculators New pages you may wish to bookmark Capabilities, Industries, Services, Products FOR MORE INFORMATION To have your Spirax Sarco website user experience visit www.spiraxsarco.com/global/us today! n The upgrade not only includes a fresh new look, but also a vastly improved navigational experience, new multimedia content and improved search functionality. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 35 of 49
  • 36. I magine this scenario: In a refinery in some part of the world, an engineer struggles with an old and worn-out mechanical flowmeter. The rotor bearings are shot, and it’s giving erratic readings. He asks himself, “With a company of this size, with all the money flowing through here, why can’t we do some basic instrumentation upgrades?” The questions of why companies spend money the way they do and how they make investment decisions are complex in virtually any company context, but they seem particularly opaque when working in a large and diversified industry like oil and gas. Why are companies the way they are in this business, and are there keys for working within them? It’s complicated. UNDERSTANDING TECHNOLOGY DRIVERS IN OG How and why do oil and gas producers make operational decisions at production levels? With such a large and complex industry, can we make sense of it all? E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 36 of 49
  • 37. Let us pause for a moment and consider some of the elements that make it all tick. These are interesting times for the industry as oil markets today seem particularly mixed up and many producers find themselves in a difficult financial situation, at least for the moment. A fully integrated company in this industry has to deal with everything from finding oil and getting it out of the ground to putting it in your car. Names like BP, Shell, ExxonMobil, and others encompass the entire range. Others are more selec- tive and may only choose certain parts of the process such as drilling or refining. There are similar situations in natural gas production. Let us pause for a moment and consider some of the ele- ments that make it all tick. These are interesting times for the industry as oil markets today seem particularly mixed up and many producers find themselves in a difficult financial situation, at least for the moment. This article is the first of a series that will examine the in- dustry in general, and then various segments one by one. We’ll look at what producers are doing and how they are undertaking projects to improve efficiencies and keep up with a changing regulatory landscape. We’ll consider what technologies are being adopted, where, and how propo- nents make a compelling business case. In many respects, oil and gas production and refining gave birth to process industries as we know them. Turning bulk quantities of crude oil into kerosene and eventually gaso- line, diesel, and other products, set the pattern for chemi- cal and petrochemical industries to come. Refineries are among the oldest process plants we have, and the entire production and distribution chain from well head to your home's gas meter or filling station is arguably the most ef- ficient and optimized activity on earth. The fact that it has all developed to such a colossal scale around the globe over the last 150 years makes it particularly impressive. At the same time, growth in demand for the industry has ef- fectively stopped in many developed markets such as North America and Europe. Depending on which reports one be- lieves, demand in China has likewise slowed or stopped, E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 37 of 49
  • 38. although actual numbers vary. Saudi Arabian production policies to manipulate pricing not- withstanding, demand slowdowns have had a major impact on all markets. Whatever comes out of the current situation, it’s safe to predict the picture of how oil moves around the globe will be different going forward. The Fundamental Things Apply Oil and gas companies, like all rational, profit- driven companies, are investor owned and therefore all about making money. They want to be able to sell their products for more than they cost to produce. (There are national com- panies in various parts of the world motivated by politics, but those are a different animal.) When profit- driven companies consider making investments in any part of the production chain, they do it with an expected return on investment or because they are compelled by some type of regulation. The things that make decisions so complicated in this context relate to scale and the number of choices. So how do managers make investment decisions? Nichole Decker is an energy sector strategist at UBS Wealth Man- agement and started her career working at Texaco. In her thinking, the big companies dominating the industry today got that way because they generally made good choices. “Companies do have to focus on the business,” she said. “They also have to keep shareholders happy. The one goal that the company and shareholders all benefit from is a re- turn-oriented model where an oil company will take a look at its portfolio, see how it sits into the competitive landscape, and act accordingly. But they also have to ask how projects within the portfolio compete with one another. “The business decisions as to where to invest in one project E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 38 of 49
  • 39. While it may sound ironic, many companies in this industry don’t want to grow in the traditional sense. Every barrel or oil or cubic foot of gas has to come out of the ground somewhere, which makes reserves hugely important. Where will it be coming from next week or five years from now? or another, are driven by which will yield the highest return. When they can generate cash flow, they can return that to the shareholders through dividends and share buy backs,” she said. “You see that now with a lot of growth going on, but the dividends continue to increase and some of them are buying back substantial numbers of shares.” Growing Without Growth While it may sound ironic, many companies in this industry don’t want to grow in the traditional sense. Every barrel of oil or cubic foot of gas has to come out of the ground some- where, which makes reserves hugely important. Where will it be coming from next week or five years from now? When production is growing every year, it puts more pressure on finding new reserves and that can be a very complex picture. If traditional sources begin to decline, a company may have to make difficult decisions about finding new ones. Of course, companies in industries that are not growing still need to improve profitability to keep shareholders happy and support their stock price. Strategies include diversification, squeezing more out of existing assets, and divesting less profitable parts. Major integrated producers in this industry have frequently taken the path of divestiture when it comes to refining assets. We will look at refining in greater detail in future installments, but for the moment let’s consider where it fits in the larger picture. Decker adds, “Refining is a notoriously low-margin business, and it’s very cyclical. That’s the reason why many of the large companies want to shed refining assets. They aren’t the highest return assets in the portfolio. Upstream operations generate much higher rates of return.” The Role of Technology Over the past five to 10 years, the oil and gas industry has seen many technological changes ranging from drilling and production (e.g., fracking, new offshore drilling techniques, tar sands, exploitation, etc.) to refining and distribution. The most dramatic changes have been upstream, and new E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 39 of 49
  • 40. sources of oil and gas have drastically changed the overall production landscape. Recent oil price changes have disrupted these markets dras- tically. Some companies carry on with the assumption that these conditions are temporary and will return to more typi- cal levels. Others have optimized production to the point that they can still earn a profit even with prices as they are now. Whichever view one takes, it is clear that growth of uncon- ventional oil and gas production has been driven by tech- nologies that have drastically reduced the cost and time necessary to drill new wells and get them into production. Im- provements in well management have increased the amount taken from each, extending well life and production. How Companies Make Decisions Let’s return to our hypothetical engineer mentioned at the beginning. What are his prospects for seeing any improve- ments in that facility? What would make the company decide to undertake an instrumentation improvement program, or any other investment opportunity? Lee Swindler, oil and gas program manager for Maverick Technologies, suggests that drivers aren’t all that hard to fig- ure out: “A certain group of projects is safety driven. Another group is regulatory driven, such as environmental controls. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 40 of 49
  • 41. If you look at any business that supports both advanced solutions and capital projects, you find those are counter-cyclical. When there are big capital projects, there aren’t smaller optimization projects, and vice versa. For a refinery, those resource decisions are generally made within the fence, not at higher levels. Then there’s a third group of projects driven by profit. In lean years, your budget is completely spent on just safety and regulatory projects, so you don’t even get to the profit im- provement stuff. In good years you still have to do the safety and regulatory, but you have a little extra money to do some profitability projects. Those are usually pretty easy to rank based on your expected rate of return.” Paul Bonner, vertical market leader for oil and gas for Hon- eywell Process Solutions, sees the overall flow of capital influencing decisions on a very practical level. “When mar- gins are very tight and people aren’t investing capital, a lot of companies will take on smaller improvement projects. That’s when we see advanced process control or MES projects to increase yields or improve energy efficiency. But those tie up the available engineering resources. “So when capital is available and a company is spending $1 billion on a new process unit, they have to find people, and they want the best and brightest, so they often reassign all the engineers who would have been working on those opti- mization projects,” Bonner said. “If you look at any business that supports both advanced solutions and capital projects, you find those are counter-cyclical. When there are big capi- tal projects, there aren’t smaller optimization projects, and vice versa. For a refinery, those resource decisions are gen- erally made within the fence, not at higher levels.” Those points are important to understand, but how does a company make decisions on choosing one area of invest- ment over another within its portfolio? Does all the money go to upstream ventures because that’s where management sees the greatest profit potential? Bonner said that isn’t how it works in practice. “If you look into how an integrated oil company is structured, I think they have a higher degree of separation that people realize,” he said. “Their upstream operations are almost com- pletely different companies than their downstream. Moving capital or moving people from one to the other is like mov- E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 41 of 49
  • 42. ing to a different company. They’re different cost centers, they have different vice presidents, so when they’re making investment decisions, which are based on ROI, they’re be- ing made at the highest corporate level. They aren’t made by some guy at the production level who said, ‘Let’s not drill a well today; let’s work on the crude unit.’” Sometimes the answer is “no” to a project that seems like a sure thing. Swindler saw that himself earlier in his career working in the chemical industry. “There are times within a company when you look at a project, and maybe there’s a six-month payback, but you don’t have the money so you don’t do it,” he said. “Plant personnel who are trying to oper- ate and maintain the assets may consider it a stupid deci- sion, and that can be a major frustration. In my experience, it seemed like there were lots of good projects that never got done.” Other Forms Of Investment So far we’ve discussed investment in the form of hardware and software. But there are other elements to the picture: the human side. Throwing technology at a problem is rarely a solution in and of itself. The human capital side is a major el- ement and can make a huge difference to a company’s suc- cess. Swindler sees that kind of thing routinely in his travels as an integrator. “Refineries operate with a lot of outdated equipment, prob- ably more so than any other type of plant because of the age of their assets,” he notes. “But work processes are a mix. I’ve seen plants with old equipment make impressive productivity gains by applying better work practices. Where people make a commitment, operational excellence can exist in some dif- ficult environments.” The ability to get people working toward common goals may be the biggest key to success. “You need everybody on board to create the efficiencies that these companies real- ize,” said UBS’s Decker. “It’s a function of the human capital you give to it, not necessarily the money you throw at it. Most of the large companies will tell you that. They emphasize the importance and contribution of each individual.” n Peter Welander is a contributing content specialist for Oil Gas Engineering magazine. Oil Gas Engineering is a bi-monthly publication by CFE Media that will cover aspects of oil and gas operation, design and distribution, with a specific focus on helping oil and gas operations managers operate their systems safely and more efficiently. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 42 of 49
  • 43. YOUR ESSENTIAL GUIDE TO STEAM ENGINEERING T his is the most comprehensive practical guide to the design and operation of steam systems ever created. At nearly 1,500 pages, The Steam and Condensate Loop cover’s all aspects of steam and condensate systems, helping engineers to optimize plant operations and save energy. FIND OUT MORE! Priced at just $129.00, this essential best practice guide is available for ordering from Spirax Sarco. FEATURES: • 16 Chapters • Comprehensive short modules • Comprehensive index • Equations summary section • Full color and illustrated throughout • Practical application techniques E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 43 of 49 Click to Purchase!Click to Purchase!
  • 44. LETS CONNECT SOCIALLY… No matter what your social network preference is, there’s a way for you to connect with Spirax Sarco! Add Spirax Sarco USA to your circle on Google+ and share your insight on engi- neering topics. ADD NOW Follow Spirax Sarco on Twitter for links to great ar- ticles, communicate with our staff and share your opinion with us. FOLLOW US Subscribe to Spirax Sarco’s YouTube Channel to view our latest products, services and see various demonstra- tions. SUBSCRIBE NOW Join the Spirax Sarco net- work on LinkedIn to be part of the discussions that are shaping the steam industry. JOIN US If you’re on Pinterest, won’t you repin our content? You never know, we may pin you back! CHECK US OUT Post on our Facebook page and stay connected to industry news, technical tips, and much more. POST A COMMENT E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 44 of 49
  • 45. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 45 of 49 DID YOU KNOW SPIRAX SARCO HAS ITS OWN COMPANY STORE? You can purchase an array of novelty items that proudly display the Spirax Sarco brand and logo. The Spirax store is so convenient. It’s just a mouse click away and can be accessed whether you are sitting in your office in the middle of the day or in your pajamas in the middle of the night. You can find great clothes and accessories available for purchase with your credit card via the website. It only takes a few days to receive your order. For your convenience a customer service number can be found on the website if you should have any questions or need assistance with your order. Happy Shopping! n Click here to view the online catalog and make a purchase!
  • 46. TECHNICAL PROBLEM SOLVER Real Technical Support Issues and Their Solutions Problem Some months ago, we received an inquiry from a customer in western Colorado regarding maintaining temperature in an oil storage tank. The 500 gallon tank, located outside, was fitted with a modulating control valve in order to main- tain an approximate product temperature of 80˚F. The steam was delivered to the tank at 100 psig and heat added to the oil through a single tube coil. The condensate outlet was fitted with a thermostatic steam trap. The problem the customer was having was that the temperature was not getting to the set-point of 80˚F. Have a problem? Simply send your question to the Technical Problem Solver: Spirax Sarco, Attn: Tracy Britt, 1150 Northpoint Blvd., Blythewood, SC 29016 or email us at spiraxinfo@spirax.com. Kindly indicate if you do not wish to have your name and/or your company’s name published. We reserve the right to edit the question or choose not to publish them. If your question is published, you will receive a gift! Solution After review of the condensate pipe temperature gradient, it was determined that the thermostatic steam traps were back- ing up with too much condensate and not allowing the coil to heat. It was suggested in order to prevent failure by freezing to replace the thermostatic trap with a mechanical trap. The trap was a float and thermostatic type and was combined with a liquid expansion trap. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 46 of 49
  • 47. STAY DOUBLY SAFE Make sure you are protected during maintenance by using double block and bleed isolation. Double block and bleed enables a section of plant to be safely isolated for maintenance without having to shut down the entire system. n STEAMTIP OF THE MONTH LEARN MORE To learn more about this steam tip, write to Steam Tip of the Month #16, Attn: Tracy Britt, 1150 Northpoint Blvd., Blythewood, SC 29016 or email us at spiraxinfo@spirax.com. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 47 of 49
  • 48. TELL US HOW TO MAKE OUR NEXT ISSUE EVEN BETTER AND WIN A PRIZE! Complete our short readership survey today for a chance to win a Fitbit Charge! I n our ongoing efforts to make SteamNews a valued resource for anyone in Steam System management, we hope you will take a moment to complete our readership survey. Let us know what you think so we can make future issues even more interesting and informative! All you need to do is an- swer a few questions and you’ll be entered into the free prize drawing for a Fitbit Charge Wireless Activity Wristband. For Terms and Conditions, please visit the survey. Complete our readership survey! To take the survey just click here. E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 48 of 49
  • 49. FREE DOWNLOAD – STEAM TOOLS MOBILE APP This App provides customers and sales engineers access to key calculations when identifying the right steam tools for the job - all in the palm of their hand. Simple to use, the app enables quick and easy access to Steam Tables and Saturated Steam Pipe Sizing tools, helping to size a pipeline without the need for an internet connection. Perfect for steam engineers on the go! To enhance the feature settings, both tools offer the output of this data into a range of different standardized units. Also within the app are links to our world leading steam engineering tutorials, comprehensive product literature catalog, international website and YouTube channel. App highlights include: • Supports multiple languages • Temperature units in °C, °F or K • Default output units Metric and Imperial • Input and Output data available in barg, a, kpag abs and psig a Download today for Android and iPhone devices via the Google Play and the Apple Store now! ■ E X P E R T I S E S O L U T I O N S S U S T A I N A B I L I T Y F i r s t f o r S t e a m S o l u t i o n s win a prize contentsemail print full screen on/off 49 of 49