Inspectioneering

Reliability and Integrity – Keys to Survival

7 likes No comments

By Khulani Ndimande at ABB Consulting, and Fernando Vicente at ABB. This article appears in the November/December 2015 issue of Inspectioneering Journal

Introduction

The oil price slump has resulted in new budget constraints for oil and gas operators. That, combined with increasing production losses means that some, if not all, companies in the sector are going through a perfect storm. This requires somewhat of a new approach in how we address reliability and integrity issues. Managers are being challenged to run their facilities more efficiently and effectively, taking into account fewer people and lower budgets. In a recent survey from Oil & Gas UK, almost 50% of production losses were attributed to reduced equipment reliability, with other industries showing similar statistics.

Current financial and competitive environments make it imperative for organizations to explore new ways of reducing operating costs. One popular approach is to reduce spending on equipment maintenance, reliability, and integrity programs. However, this approach only has a short term impact on business performance. Maintenance costs can be reduced temporarily, but this comes with the increased potential for reliability and mechanical integrity problems later down the road. This inexorably leads to increased production costs, and eventually, a negative impact on safety and long-term business performance.

Figure 1. World Bank Commodity Crude Oil price forecast, October 2015.Figure 1. World Bank Commodity Crude Oil price forecast, October 2015.

As seen in this forecast from World Bank, with projected oil prices remaining under $66.5 until 2018, an increase in production costs would result in many organizations facing serious challenges to stay competitive.

This article highlights several benefits of sound reliability and mechanical integrity practices and how they serve as the cornerstone of effective asset management. Moreover, we believe effective asset integrity management is not only important, but essential, to overcoming the challenges presented by operating in the current oil and gas market.

This content is available to registered users and subscribers

Register today to unlock this article for free.

Create your free account and get access to:

  • Unlock one premium article of your choosing per month
  • Exclusive online content, videos, and downloads
  • Insightful and actionable webinars
GET STARTED
Interested in unlimited access? VIEW OUR SUBSCRIPTION OPTIONS

Current subscribers and registered users can log in now.


Comments and Discussion

There are no comments yet.

Add a Comment

Please log in or register to participate in comments and discussions.


Inspectioneering Journal

Explore over 20 years of articles written by our team of subject matter experts.

Company Directory

Find relevant products, services, and technologies.

Job Postings

Discover job opportunities that match your skillset.

Event Calendar

Find upcoming conferences, training sessions, online events, and more.

Industry News

Stay up-to-date with the latest inspection and asset integrity management news.

Blog

Read short articles and insights authored by industry experts.

Asset Intelligence Reports

Download brief primers on various asset integrity management topics.

Videos

Watch educational and informative videos directly related to your profession.