Instrumentation, System Integration and Expert Capability: Critical Success Factors for Pipeline and Refining Operations

May 8, 2015 Elizabeth Alford

This guest blog post is written by Darlene K. Gregory

Measuring pressure, temperature, flow and level in the pipeline is critical for midstream and upstream producers. When the pipeline is miles long, as many in the Texas Eagle Ford Shale, Bakken Shale and the Texas Permian Basin are, the quality of your process tubing, compression fittings and instrumentation is as critical as the pipeline itself to the profitability of the producer.

Instrumentation and process systems regulate interface levels in tanks to separate oil and water, so oil can be trucked to refineries for processing or to the nearest port for shipment. Faulty instrumentation or process systems can cause lower pricing for your product, as the oil is “contaminated” by excess water.

“Producers spend many millions of dollars to install the pipeline, X-ray the wells, and hydrotest the pipe. Correct, meticulous installation of process systems, tubing and compression fittings in the pipeline prevents lines from blowing or leaking – ensuring safe operations for staff, the community and the environment.” said Rolando Perez, Project Manager of Rabalais I & E Constructors’ Instrumentation & Systems Integration Division. “When oilfields become prolific, such as the Eagle Ford Shale has, many mechanical and roustabout companies enter the market to provide instrumentation and process tubing services. Unfortunately, many of these companies are unaware of the critical nature of correct insertion of the tubing and fittings. We’ve been called to remedy faulty installations time and time again,” said Darrell Harned, Vice President of Instrumentation & Systems Integration.

Instrumentation and process systems regulate interface levels in tanks to separate oil and water, so oil can be trucked to refineries for processing or to the nearest port for shipment. “Faulty instrumentation or process systems can cause lower pricing for your product, as the oil is “contaminated” by excess water,” said Harned.

Rabalais Instrument & Electrical Constructors has served the oilfield, refining and petrochemical industries nationwide for 30 years. Located just 60 miles from the Eagle Ford Shale, in Corpus Christi, Texas, the company employs several hundred certified and trained electricians, instrumentation, RTU/SCADA and system integration specialists. With offices in San Antonio, Houston, Dallas, Midland/Odessa and Louisiana, the company has long term relationships with some of the biggest names in the petroleum industry…NuStar, Anadarko, Chesapeake, Citgo, Valero, Texas Star and Exxon to name but a few, both in the field and in the refineries.

Rabalais provides installation, calibration, and loop check of all types of pneumatic/electronic instrumentation utilized for control and monitoring of process systems. The company’s NCCER Certified Instrument Fitters and Instrument Technicians can assist you on any new construction, revamp, maintenance, or turnaround project nationwide. Rabalais addresses the client's business needs through conceptual design while utilizing state of the art construction disciplines to examine the entire scope of the project. Its project managers and team leaders incorporate all project issues to provide the greatest potential of success for clients, including cost improvement, life cycle expenditures, capital cost expenditures, project management, scheduling, procurement, installation, process training, service and maintenance.

Rabalais’ extensive experience in all types of industrial processing facilities has allowed the firm to create a safe and productive working environment that exceeds all national standards for the industry. It takes pride in its unique ability to integrate disparate systems to increase efficiency and production.

The company’s capabilities include:

Installation of Pneumatic / Electronic / Hydraulic Instrumentation per client standards & specifications
Select and procure material per client specification
Design and fabricate elaborate tubing tray support systems
Interpretation of client drawings and specifications
Installation / Design of Steam and Electric Trace Systems
Install Pneumatic, Process Impulse, Sample and Hydraulic Tubing Systems
Instrument & Electrical construction, maintenance and turnaround services
Project estimating, planning and scheduling
P&ID walkdowns
Constructability reviews
Steam tracing
System Maintenance

In refineries, as in the field, Instrument Calibration is critical to a successful installation of any instrument system. Accuracy of the information produced by any instrument is dependent on proper calibration. OEM-stated procedures are used by Rabalais technicians to correct any inaccuracies and document findings. Services are offered in your facility without removal of the equipment or disturbing normal process operations. Rabalais saves time and cost during construction of your project by performing Field and Bench Calibrations prior to installation. The company calibrates, certifies and documents every instrument. Pre-installed instruments are field calibrated. All Calibration Services include complete control loop testing.

“Experience has taught us that project success requires early planning, continual monitoring, and full, open and regular communication with our clients. Rabalais programmers are experts in System Integration Design, providing interfaces and implementing complex control strategies.”

— Harned

ince all departments necessary for successful integration are in-house at Rabalais, the firm is a single source for a complete turnkey control system project of exceptional quality. Formal project management methodology is used on every project. Rabalais’ mission is to ensure clients receive cost-effective solutions, reduced down time, and are provided total asset protection.

From initial design and consultation, through system development, commissioning and support, Rabalais' innovative control and automation solutions keep your systems online.

Programmable Logic Controller (PLC) Systems are integral to safe plant operations. Rabalais provides the following services for PLCs:

Control logic for various PLC & hardware vendor • relay ladder logic • function block diagram • sequential function chart • structure text • instruction list
Operator interface hardware programming (character displays to graphical touch screens)
UL control system panels
Fully documented control logic programs
PID loop control programming and fine tuning
Dial-up program support
Industrial communication layout design and implementation (Ethernet, ControlNet, DeviceNet, Modibus, Profibus & others)

Rabalais is a recognized leader in the petrochemical, refining and oilfield services industry. The company’s EMR safety record is unmatched, and its many safety awards attest to its commitment to training its staff for excellence.

“We always find it interesting how many companies we compete with during “boom” periods,” said Harned with a chuckle. “Rabalais has spent three decades investing in state of the art technology to provide top quality electrical, instrumentation, system integration and RTU/SCADA programming for our valued friends in the industry. When all the others leave, Rabalais is still growing our clients’ revenues and maintaining their projects and plants safely.”

For more information on how Rabalais Instrument & Electrical Constructors can enhance your bottom line, call 361-242-3121 or visit www.rabalais.com.

EOG On Track With 2015 Spending Plan

May 7, 2015 Elizabeth Alford

Talisman Cuts Jobs — EOG will resume fracking

EOG Resources released its first quarter earnings and operations report this week with hints about when they will return to fracking wells.

Citing low commodity prices, EOG announced a first quarter net loss of $169.7 million. They remain on track with their plans for a 40% capex decrease and are making substantial progress in reducing costs through operational efficiencies and service cost reductions.

85% of EOG’s spending for 2015 is allocated for the Eagle Ford, Delaware Basin, and Bakken. Their strategy is to continue drilling, but defer completions on a significant number of wells until oil prices improve. As oil prices recover, EOG predicts it will begin to begin fracking wells later this year when prices stabilize at around $65.

In an earnings conference call on Tuesday, Chairman and CEO, Bill Thomas announced that the first quarter results were “right on track” and that they are “quickly transforming the company to be successful in this low price environment.” Thomas went on to lay out the four basic objectives to EOG’s 2015 plan:

Maximize 2015 returns on capital invested and position the company to resume strong growth when oil prices recover
Focus on improving well productivity and operational efficiencies
Protect the balance sheet by meeting our cash flow and CapEx expectations for the year
Take advantage of opportunities during the down cycle to add acreage

“We are using our exploration skills to define high quality acreage and are having good success capturing leasehold interest in emerging plays. Competition is down, acreage is available, and leasing costs are low compared to previous years, and we are optimistic more opportunities will materialize as the year progresses.”

— Bill Thomas

EOG will reduce rigs in the Eagle Ford this year to 15 from 23 at year-end 2014 and will complete about 345 net wells. The company has reduced completed well costs by 10% from an industry-leading $6.1 million average well cost in 2014 to a current well cost of $5.5 million.

Federal Fracking Regulations Challenged

May 6, 2015 Elizabeth Alford

Eagle Ford Rig Count — Fracking Regulations Challenged

In March,the Bureau of Land Management (BLM) finalized new rules to regulate hydraulic oil and gas fracturing on public lands and challenges to that law began immediately. Last month, the Federal District Court of Wyoming cleared the way for states to challenge the sweeping federal authority to impose these regulations.

Texas has been facing the same issue on a more local level. The Texas ouse and senate recently approved legislation that favors state control that would would limit a city’s ability to impose regulations on oil and gas industry activities.

Colorado is joining Wyoming and North Dakota to challenge the new US federal government’s fracking rules and argue in their lawsuit that the new rules supersede the state’s authority and “invade” the jurisdiction of the state regulatory bodies. They also claim these additional rules aren’t necessary because the EPA has already granted authority to the states to monitor and protect underground water sources.

“Colorado has robust regulations on oil and gas development, including hydraulic fracturing, and our agency regulators are doing a good job implementing them. I believe it is important to test BLM’s novel assertion of regulatory authority in an area that has been traditionally—and in this case expressly—reserved for the states.”

— Colorado Attorney General, Cynthia Coffman

Four Texas Quakes within 24 Hours

May 5, 2015 Elizabeth Alford

Another round of earthquakes hit north Texas this week, bringing the total number to 60 in the past year. The latest quakes were reported only two weeks after new evidence links fracking with increased seismic activity.

The United States Geological Survey is reporting a string of small earthquakes in Irving, a small community just northwest of Dallas. On May 3rd, two quakes measuring 3.2 and 2.5 magnitudes were registered about an hour apart and on May 4th, there were two more in the same area measuring 2.7 and 2.0 on the richter scale.

The USGS says that Irving and Northwest Dallas have experienced 60 quakes since April, 2014, but Brian Stump, a seismologist from SMU said that a more accurate picture reveals 388 seismic “events” so far this year in the area. The vast majority of these quakes are too small for people to feel, so they aren't making headlines. The quakes that have recently north Texas are small and cause minimal damage, but many wonder if all for this minor activity is a precursor to something more serious.

Before 2008, Texas earthquakes were rare, but have become much more commonplace.

“The sad thing is that this is happening so often I’ve started to recognize it immediately. The first time I felt a quake back in January, I walked around for a good fifteen minutes trying to figure out what had happened.”

— Dalles Morning News

Binational Energy Task Force in the Works

May 4, 2015 Elizabeth Alford

Since the Mexican government enacted historic energy reforms in 2014, there have been a flood of initiatives to encourage dialogue and collaboration from both sides of the border. One if these is a new task force proposed by Texas Secretary of State, Carlos Casco.

Casco announced the formation of a new task force last week that will reach out to Mexican and U.S. agencies and entrepreneurs. His hope is that this binational effort will promote public/private partnerships to tackle critical issues that are key to economic development including infrastructure projects such as water and roads.

“We have to invest in our infrastructure in order to continue being able to be a trading partner. At the end of the day, it’s about job creation and business on both sides of the river.”

— Secretary of State, Carlos Casco

Mexico's new legislation opens up the country's energy market to foreign investment and has sparked the state power company (CFE) to initiate an aggressive construction campaign that includes $3.3 billion to be spent on 12 natural gas and electricity projects.