Embed Size (px)
Citation preview
Confidential. Not to be copied, distributed, or reproduced without prior approval.
IMPORTANCE OF QUALITY VALIDATION TO COMPETITIVE STRATEGIES OF PIPE MANUFACTURERS May 24, 2017
Paper By : Jeffrey Stetson
GE Oil & Gas – Inspection Technologies, USA
Presented By: Kah Cheon (KC) Lye
GE Oil & Gas - Inspection Technologies, Singapore
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
GE Oil & Gas - Inspection Technologies
May 24, 2017 2 SEAISI2017
Manufacturing Fabrication Field Install & Construction
Operations & Maintenance
Decommission
Help assess the health of customer assets throughout the lifecycle with NDT technology and solutions
• Testing machines for verifying the quality of pipe, plate, and castings
• Improve fabrication productivity with ultrasound and digital x-ray
• Validate the integrity of field construction with portables
• Assist with verifying repairs
• Help monitor and view equipment condition
• Help assess condition
Ultrasonic
Testing
Machines
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
GE Ultrasonic Testing Machines (UT TM)
May 24, 2017 Presentation Title 3
Applications
• Tubes and Pipes used in Oil & Gas
- Seamless Pipe and Tube
- ERW Pipe and Tube Inspection
- SAW Pipe and Tube (longitudinal and spiral welded)
• Raw materials used in critical applications
- Bar and Billet
- Heavy Plate
- Strip Tester
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Failure Examples
May 24, 2017 4 SEAISI2017
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
Annual Cost of Failure of US Midstream Pipelines
May 24, 2017 SEAISI2017 5
Source: Pipeline and Hazardous Materials Safety Administration, US Department of Transportation
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
$1,600,000,000
$1,800,000,000
$2,000,000,000
0
50
100
150
200
250
300
350
400
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Number Total Cost Current Year Dollars
Average annual cost of $389M per year from 1997 through 2016
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
US Line Pipe Failure Causes – 2006-2010
May 24, 2017 6
Source: US Department of Transportation, The State of the National Pipeline Infrastructure
Material and/or Weld 36%
Corrosion 24%
Excavation Damage 14%
Incorrect Operation 10%
Other 7%
Natural Forces 6%
Other Outside Forces 3%
Defects that should have
been caught during the pipe
manufacturing process
SEAISI2017
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
Duke University Study on Water Contamination
May 24, 2017 7
Source: EurekAlert.org
PUBLIC RELEASE: 15-SEP-2014
Contaminated water in 2 states linked to faulty
shale gas wells
Flawed well casings and cement blamed for
drinking water contamination in Pennsylvania
and Texas
DUKE UNIVERSITY
SEAISI2017
Confidential. Not to be copied, distributed, or reproduced without prior approval.
Tightening of Inspection Standards >> It’s not just about API
May 24, 2017 8 SEAISI2017
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
LSAW Line Pipe Example
May 24, 2017 9
Source: API 5L and Shell DEP 31.40.20.37
API 5L Shell DEP
25mm Thick LSAW Pipe
Longitudinal Flaw
Transverse Cap
HAZ Laminations
Longitudinal Weld Cap Longitudinal Weld Root
Longitudinal Midwall
Longitudinal Midwall
Longitudinal Midwall
Transverse Root
Transverse Cap
Longitudinal Weld Cap
Longitudinal Weld Root
Transverse Root
SEAISI2017
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
Seamless Casing Example
May 24, 2017 10
Source: API 5CT and Exxon Mobil EMQSP 6.9
SEAISI2017
API 5CT EMQSP 6.9
Wall Reduction
45 Degree Right Hand 67 Degree Right Hand
22 Degree Left Hand
45 Degree Left Hand
Transverse OD
Longitudinal ID
Longitudinal OD
Transverse ID
Carbon Steel CRA
Mid-wall (TDH)
Transverse OD
Longitudinal ID
Longitudinal OD
Transverse ID
Inclusions (FBH)
67 Degree Left Hand
22 Degree Right Hand
Confidential. Not to be copied, distributed, or reproduced without prior approval.
The Future is Now
May 24, 2017 11 SEAISI2017
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
Future Proof
May 24, 2017 12
Inspect to a Higher Quality Standard – Seamless Pipes
Conventional probes discrete angles
1D Array probes discrete angles
1D Array probes
with Paintbrush gapless up to ±45°
2D Matrix Array probes
with ShapeUT gapless 360°
SEAISI2017
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
May 24, 2017 SEAISI2017 13
Future Proof
Inspection Flexibility Needs – Clad and Carbon Steel SAW Pipe
• Phased Array Ultrasonic Inspection
• Sectorial Scanning
For quick and easy setup
• Motorized Probe Adjustment
For quick and repeatable setup
• Wheel Probe – provides ability to
improve evaluation of transverse weld
defects
• B, C Scan and 3D imaging capability
to eliminate prove up steps
• Stable mechanical structure to ensure
proper probe alignment and
inspection stability
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
May 24, 2017 SEAISI2017 14
Case Study - Kashagan Project Source: https://qz.com/196057/kazakhstan-kashagan-largest-oilfield-will-be-shut-down-for-at-least-two-years/
Confidential. Not to be copied, distributed, or reproduced without prior approval.
How to Compete?
May 24, 2017 15 SEAISI2017
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
May 24, 2017 SEAISI2017 16
Examples by Supplier and Pipe Type
Carbon Steel Seamless Relative Price Comparison (USD/Ton)
SIZE NB SIZE" MSL ISMT JSL NSSMC USL BAO ARCELLOR TNRS V&M
15 1/2 1,350.00 1,350.00 1,360.00 1,485.00 - 1,050.00 1,470.59 1,420.00 1,450.00
20 3/4 1,125.00 1,125.00 1,150.00 1,265.00 - 970.00 1,250.00 1,200.00 1,225.00
25 1 970.00 970.00 980.00 1,125.00 - 900.00 1,102.94 1,050.00 1,070.00
32 1.25 925.00 925.00 940.00 1,070.00 - 875.00 1,058.82 1,000.00 1,025.00
40 1.5 825.00 801.47 820.00 980.00 - 825.00 955.88 900.00 930.00
50 2 820.00 820.00 820.00 965.00 - 630.00 941.18 880.00 920.00
65 2.5 820.00 820.00 820.00 965.00 - 630.00 941.18 880.00 920.00
80 3 820.00 820.00 820.00 965.00 - 630.00 941.18 880.00 920.00
90 3.5 820.00 820.00 820.00 965.00 - 630.00 941.18 880.00 920.00
100 4 820.00 820.00 820.00 965.00 790.00 630.00 941.18 880.00 920.00
125 5 820.00 820.00 820.00 965.00 790.00 630.00 941.18 880.00 920.00
150 6 820.00 820.00 820.00 965.00 790.00 630.00 941.18 880.00 920.00
200 8 820.00 820.00 820.00 965.00 790.00 665.00 941.18 880.00 920.00
250 10 820.00 820.00 - 965.00 790.00 665.00 941.18 880.00 920.00
300 12 875.00 - - 1,020.00 790.00 665.00 1,000.00 950.00 975.00
350 14 875.00 - - 1,020.00 790.00 665.00 1,000.00 950.00 975.00
400 16 875.00 - - 1,050.00 - 665.00 1,029.41 975.00 1,000.00
450 18 875.00 - - 1,050.00 - 720.00 1,029.41 975.00 1,000.00
500 20 875.00 - - 1,050.00 - 720.00 1,029.41 975.00 1,000.00
550 22 - - - 1,200.00 - 720.00 1,176.47 1,050.00 1,150.00
600 24 - - - 1,200.00 - 720.00 1,176.47 1,050.00 1,150.00
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
Competitive Strategies
May 24, 2017 SEAISI2017 17
• Low Cost Producer?
High Volumes
Generic Product
• Product Excellence?
Highest Quality
• Service Excellence?
Batch Production
Specialty Products
Secondary Operations
Ma
rgin
s
Product Integrity
Confidential. Not to be copied, distributed, or reproduced without prior
approval.
May 24, 2017 SEAISI2017 18
Thank You
Please feel free to contact the following if you have any
questions or want more information:-
• KC Lye ([email protected])
• Jeff Stetson ([email protected])
