TPT March 2020

AR T I C L E

Thermatool Corp

Advances in infrastructure, robust OCTG industry to suppor t energy transition By Shawn Martin, Thermatool Corp, USA

Midstream operators’ reliance on API-grade oil country tubular goods In the oil and gas industry, there are four methods of transport: rail, sea, over-the-road and pipeline. Pipelines are the ideal mode of transport, providing a distinct advantage over all other modes. They bear lower risks, are far more efficient and operate at a fraction of the costs of all other modes. The two largest issues facing midstream operators today are aging infrastructure and limited pipeline capacity. The continued development of tight oil and shale gas has pushed the constraint of existing infrastructure. In order to capture associated gas in tight oil plays, capitalise on available resources and offset the amount of gas being vented or flared into the atmosphere, new infrastructure developments are necessary. The EIA reported that 20,000 miles of new natural gas transmission pipelines were put in service between 1998 and 2008, representing an additional capacity of 97 billion cubic feet per day. Approximately 30,000 miles of new pipelines are currently scheduled for development to bring US tight oil and shale gas to market. To realise the benefit of additional pipeline capacity and decrease the potential for any unexpected outages, there is an increased demand for defect- free X70 and X80 grades API 5L line pipe. How Thermatool suppor ts the oil country tubular goods industry Thermatool’s technologies enable operators to produce API- grade, high-quality oil country tubular goods (OCTG). They have overcome challenges of welding advanced infrastructure materials by developing a collection of high-frequency welders, seam annealers, quench and tempering units and associated power supplies. They are able to precisely control weld heat input during HF Welding operations, minimising any amount of changes to the parent material, which results in the highest- performing, high-frequency, welded API tube and pipe. Manufacturers can produce defect-free, high-frequency, welded coiled tubing up to 5 in diameter and lengths in excess of 30,000ft with Thermatool’s highly automated solutions. They are also able to process up to 24" diameter, 1" wall, API 5L line pipe with the mill highest yields by using innovative process control sensors and software. The line pipe produced is 100 per cent quality verified and tested by Charpy impact tests.

Reducing the carbon footprint Natural gas is a near-term solution for domestic energy demands in the US It carries a reduced carbon footprint when compared to traditional non-renewable resources. It also stabilises portions of the power grid that are reliant on intermittent power sources, has expedited decommissioning of coal-fired power plants and is even used as a feedstock for solid oxide fuel cells, a zero-carbon alternative to traditional power-generation methods. Advanced drilling techniques The economic viability of developed tight oil and shale gas resources is a key factor dictating the role natural gas plays in the national energy budget. Although these resources exist globally, the US has remained at the forefront by developing innovative horizontal drilling techniques that have enabled operators to boost estimated recovery and increase well productivity in a manner that is cleaner, lower cost and safer than traditional methods. Coiled tubing units are an instrumental tool in developing these resources. Largely consisting of a continuous length of steel tube manufactured to American Petroleum Institute’s specification for casing and tubing (API 5ST) in standard, high-strength and sour service steel grades, coiled tubing units have found a number of use cases. They eliminate the need to make and break connections between each section of drill pipe, can be deployed in a live well, eliminate the need for workover rigs and are housed on a mobile platform. However, the viability of these units is a function of a manufacturer’s ability to produce defect-free, high-quality, API-grade tubing with lengths in excess of 30,000ft. Key insights from theUSEnergy InformationAdministration’s 2019 annual energy outlook depicts the current energy balance and modelled behaviour through 2050. There is a clear dependency on natural gas plant liquids (NGPL) production, which carries an anticipated growth period throughout EIA’s forecast. It is a bridge fuel which supports growth of distributed power generation and renewable energy technologies, a modelled energy transition that has become reliant on economically viable tight oil and shale gas operations.

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MARCH 2020