by Jackie Johnson Jackie Johnson No Comments

The Oil and Gas Industry During Covid-19

During the early months of 2020, when the COVID-19 pandemic raged across the globe, the oil and gas industry face a historic collapse.

2020 was a year of astounding disruption.

With restrictions in travel, decline in economic activity, a price war between various countries, and declines in stock, the industry was shaken to its very core and, like many other industries, forced to reinvent itself in the wake of 2020.

In this week’s blog post we will discuss the state of the oil and gas industry during the COVID-19 pandemic, how it has fared, and innovations that have been made.

An Industry Wide Crisis

2020 was a volatile year for many industries, oil and gas in particular. In the early months of 2020, oil prices had declined by about 33%. After that various oil producing countries engaged in a price war, triggered by a breakdown in dialogue. COVID-19 caused a historic drop in travel, causing the demand for oil to plummet to unprecedented lows.

WTI spot prices declined to as low as $8.91 a barrel in April of 2020, a level not seen since the economic recession of 1986. The drop in oil prices has also added problems to several energy producing states and local governments in the US, such as Texas, that are dependent on oil and gas revenue.

Many companies had to reorganize their entire business model, and many others were forced to file for bankruptcies or to liquidate their assets.

Things looked fairly bleak for the industry as 2020 progressed and the pandemic continued to rage across the globe. Despite that there were several silver linings.

Oil in the Medical Market

One good thing is that despite the disruption in oil production, causing a drop of more than a million barrels per day over the year, there has been little to no shortage in actual supply of oil. This means that people have still been able to fill their car or use natural gas to heat their home. The industry has also been open during large parts of the pandemic, having been deemed essential by the government. This makes sense, as petroleum is used in everything from anesthetics to wheelchairs to the gas the powers ambulances.

Likewise, while there has been a shortage of medical supplies such as masks and ventilators, it was mainly a planning issue. These supplies and others like gowns, surgical equipment, syringes and more are made with petroleum-based products. As such the oil and gas industry was able assist to manufacture all of those products in mere weeks to meet the demands created by COVID-19.

Similarly, with the COVID-19 vaccines include syringes made from plastics derived from petroleum, and the Pfizer and Moderna vaccine require storage in industrial refrigeration made possible thanks to petroleum-based products.

Digitalization

While there is no doubt that COVID-19 has disrupted the oil and gas industry, some are stating that it may be a blessing in some ways. According to a report by the International Bar Association, the “reduction in oil and gas prices has increased the pressure on the industry to seek greater efficiency and reduce production costs.”

One promising alternative is digitalization, either through virtual modeling for project optimization, digital planning, cloud-based process design or machine learning.

With the social distancing requirements in place in many countries, this has forced companies to streamline remote work platforms.

Bob Benstead, VP of business cloud software firm Infor had this to say on the subject:

“I believe the biggest development that the oil and gas industry will see in 2021 will be the dramatic ramp-up of digital initiatives. This will truly push the industry toward new thinking, especially around how to maximize AI and machine learning, aligned to sensors and other Internet of Things devices, to drive down costs and optimize the workforce. Additionally, the increased trend toward cloud computing will help to significantly lower the total cost of service (TCS) to build, run and maintain efficient ERP (enterprise resource planning) and EAM (enterprise asset management) systems that oil and gas companies rely on.” (Rigzone.com “What Looms for Oil and Gas in 2021”)

Digitalization is expected to play a key role in the oil and gas industry as 2021 goes on. With enabling remote operations and allowing more human-machine collaboration, digitalizing is driving the industry forward.

Hope on the Horizon

The EIA (the US Energy Information Administration) predicts that the cost of crude oil will decline by the second half of 2021, making a more balanced global oil market. This will hopefully lower gas prices, which have been at record highs, as well as lowering the cost of production of petroleum-based products.

The oil and gas industry is also looking towards the future, with key players looking into clean energy transition, exploring public-private partnerships.

In early October, 323 rigs were working in domestic oil plays, which rose to 413 for the week ended Dec. 23, up about 28% year to date. This is still down substantially from the 838 rigs active in early March, but up nearly 50% from the early-July low of 279.

And finally, while the oil and gas industry as a whole has seen a downturn in profit, one sector, the gas pump market, as seen a CAGR growth of 6.85% in 2020, and is expected to reach a market size of US$8.685 billion by the year 2026.

In Conclusion

The impact of COVID-19 on the oil and gas industry has forced many to discuss the future of one of the world’s most volatile industries. Despite the hardships, however, there is no doubt that oil and gas will remain an important part in the global economy, and our every day lives, for some time to come.

For more information of polymer sealing solutions for oil and gas, contact Advanced EMC Technologies today!

by Sara McCaslin, PhD Sara McCaslin, PhD No Comments

Encapsulated O-Rings for Cryogenic Applications

In cryogenic temperatures, most O-rings become brittle and fail. Many times cryogenic applications can also involve media that is not chemically compatible with traditional elastomeric materials. However, for axial sealing applications, there is an effective, dependable solution: encapsulated O-rings. 

What is an Encapsulated O-Ring?

In short, encapsulated o-rings combine the chemical resistance and extreme-temperature performance of FEP or PFA with the elasticity and resilience of silicone, FKM, or stainless steel energizers. Stainless steel springs or rugged elastomers are encapsulated within a durable, chemically resistant jacket made from FEP (fluorinated ethylene propylene) orPFA (perfluoro alkoxy copolymer). These o-rings are used with valve stems, flanges, joints, swivels, pumps, turbo expanders, and waterless fracking.

Materials Used With Encapsulated O-Rings

For the outside of the O-ring, the most popular materials currently in use are FEP, PFA, and PTFE. FEP is highly resistant to chemical attack, offers a low compression set, and has a low coefficient of friction. Its operating temperature range is -420°F through 400°F and is less expensive than PFA. In addition, FEP is available in FDA-approved grades. 

PFA is resistant to a wide range of corrosive chemicals, including naphtha, acid, aromatic solvents, petroleum, and alcohol. It has a wider operating temperature range than FEP, from -420°F through 500°F. It also possesses a low compression set and resistance to cracking and stress in addition to a higher overall mechanical strength when compared to FEP. It is also available in grades that have the following approvals: USP IV, FDA-compliant, EU Reg. 1935/2004, ADI-free, and 3-A Sanitary Standards.

The materials used for the interior energizer of encapsulated o-rings include 302 stainless steel for spring energized as well as silicone, FKM (trade name Viton), or EPDM. Whether its a spring-energized approach or a core of silicone, FKM, or EPDM, the interior of the encapsulated o-ring provides the additional resiliency that makes these o-rings so effective for cryogenic applications. Note that silicone and FKM ensure an even pretensioning at the sealing point.

Silicone provides a softer core than FKM and offers very good cold flexibility. Using FKM as the core material means that the o-ring will be able assume its original shape very quickly after installation/deformation due to its outstanding compression set characteristics. It is not, however, as temperature resistant as silicone. While EPDM can be used as a core material, it is not recommended because of how it reacts to the heat involved in manufacturing the encapsulated o-rings.

Solid-Core vs Hollow-Core Encapsulated O-Rings

The two basic types of encapsulated O-rings are solid core and hollow core. Solid core o-rings have an energizer made from either silicone or FKM (fluoroelastomer, trade name Viton). Both types of cores provide good elasticity and low compression set, but when used in cryogenic applications silicone is usually the better choice because it remains more flexible at lower temperatures. Hollow-core encapsulated o-rings, on the other hand, are used when there is a need for extreme elasticity or for fragile applications. 

Advantages of Encapsulated O-Rings

There are several advantages to using encapsulated O-ring, besides the fact that they  can outperform traditional seals in harsh environments that can include extreme temperatures and corrosive media. These o-rings are …

  • Chemically resistant
  • Available in non-contaminating and FDA-approved materials
  • Low coefficient of friction that prevents issues with stick-slip behavior
  • Low permeation
  • Excellent corrosion resistance
  • Low compression set
  • Excellent service life
  • Reliable sealing
  • Cost effective

Encapsulated O-Rings for Cryogenic Operating Environments

For cryogenic environments, the best approach to encapsulated O-rings is the use of FEP or PFA exterior with a steel flat wound ribbon spring at the core. This configuration can handle cryogenic temperatures all the way down to -420°F and pressures up to 3000 psi as long as vented holes are placed in the FEP jacket to prevent dangerous blowouts. These encapsulated o-rings work best in static and slow dynamic applications and are ideal for applications that involve cryogenic media such as liquid oxygen, liquid nitrogen, hydrogen. These encapsulated o-rings are readily available in both metric and US cross-sections and a wide range of diameters.

Conclusion

For cryogenic applications where traditional o-rings have failed, encapsulated o-rings with an FEP/PFA exterior and a 302 stainless flat wound ribbon at the core is an excellent option. It has already been successfully used by NASA in not one but several successful rocket launches and has been incorporated into designs by Lockheed and Boeing.