Contributed by Joe Jelinek • Connector Sales Director at MCE Automation
Premature failure of your equipment’s hydraulic system poses significant risks to the oil and gas industry — including unplanned downtime, costly repairs, environmental hazards, and compromised worker safety. Avoid costly downtime with prevention tips and guidance on managing critical spares.
Oil rigs and fracking operations face extreme and unforgiving conditions, including extreme rain, snow, and temperature swings. To avoid costly equipment failures, ensure you have critical spares on hand.
Oil rigs and fracking operations face extreme and unforgiving conditions, including extreme rain, snow, and temperature swings. These harsh environments often lead to equipment failures — an unwelcome and costly consequence of prolonged exposure to corrosive elements. Additional challenges commonly encountered in fracking and wellhead operations include:
- Saltwater
- Sand
- Wind
- Hazardous gases
- Toxic chemicals
- Changing geological formations
- High-pressure environments deep underground
In some regions, temperature fluctuations from –50° to 100°F further exacerbate stress on equipment. These conditions not only increase the likelihood of emergency repairs but also complicate maintenance by requiring hard-to-find replacement parts, escalating costs and downtime events.
To combat these challenges, timely replacement of critical fluid power components — such as hoses, fittings, and filtration systems — is essential.
Inspecting critical components regularly, such as hose for wear and abrasion, reduces the risk of damage, downtime and costly repairs.
Effective asset management isn’t just an operational necessity; it’s a cornerstone of maintaining efficiency and reducing long-term costs.
The cost of corrosion and wear on hydraulic systems
The total annual direct cost of corrosion in the U.S. oil and gas production industry is estimated at $1.4 billion. 1
One common reason for equipment breakdown is corrosion. The process starts when reactive elements come into contact with the internal parts of the hydraulic hose or the metal components. Signs of early corrosion include:
- Rust
- Leaks
- Dullness
- Scaling
- Pitting in material
- Reduced performance
- Damage to inner structure or outer surface coating
When oil and gas operations are interrupted due to equipment failure from corrosion or wear and tear, any delays in sourcing spare parts needed for proper repair can have severe financial impacts. Financial impacts such as these compound over time, with no relief in sight.
By implementing a visual inspection program, you can spot early signs of wear, rust, or contamination that may cause corrosion.
For perspective, the hourly cost of unplanned downtime in the oil and gas sector rose by 50% in 2021 compared to 2019. Reasons for the increase included inflation, rising cost of manufactured and processed goods, higher sales prices, increased demand for business digitization, and Industry 4.0 strategies.2
The cost of unplanned downtime impacts direct costs (loss of production and revenue) but also reflects the following indirect costs:
- Compromised project timelines and penalties
- Cost of wages and paying employees who can’t work
- Cost of wages for those repairing equipment
- Cost of emergency repairs
- Potential legal fees
You can prevent unplanned downtime from asset corrosion and wear and tear by adopting a monitoring program that evaluates equipment conditions and implements maintenance practices. Follow these three tips to prevent wear:
- Select quality products made from appropriate materials and coatings. Choosing quality hydraulic hose components from the same product line and manufacturer ensures each component works seamlessly. Mixing and matching assembly components from different lines compromises the reliability at each connection point. These components should be designed with the proper materials and coatings to handle high pressures, extreme temperatures, and abrasive environments common in oil and gas. They should also follow Mine Safety and Health (MSHA) guidelines for maximum safety and reliability.
- Implement a regular visual inspection program of hydraulic components. Regular inspection of your hydraulic systems is key to avoiding unexpected failure. By implementing a visual inspection program, you can spot early signs of wear, rust, or contamination that may cause corrosion. Look for other signs of component failure due to factors such as hose abrasion (exposed wire reinforcement that can lead to corrosion and failure), kinked hoses or tubes, punctured hoses with pinhole leaks, or leaking fittings due to over-tightening or damaged O-rings. In addition to examining components for wear, check hydraulic fluids for signs of degradation. Don’t forget to inspect filtration systems. Failure to do so can shorten equipment life, increase downtime events, and add to the cost of repairs.
- Have critical spares and inventory on hand for rapid repair. Having equipment offline is costly. Access to frequently used or essential components allows for quick repairs, minimizes downtime, prevents production disruptions, and reduces costs associated with emergency purchase orders. When managing critical spares, it’s essential to have data on what components are most likely to fail and require backup stock. Consider lead times and procurement costs when developing an inventory management plan on these items.
Partner up with hydraulic component experts
Partnering with a hydraulic assembly expert streamlines your purchasing activity, provides in-depth knowledge of your industry needs, and ensures your hydraulic system operates at peak capacity and reliability. By embracing effective inventory management techniques, you can experience:
- Simplified purchasing with effective supply chain management (min/max, replenishment triggers, reporting).
- Cost savings through product consolidation, labor mitigation, reduced carrying costs, and fewer purchase orders.
- Reduced stockouts and overages with easy-to-use dashboards and adequate product storage.
- Better data visibility on product usage, business metrics, reviews, and diagnostics.
Look for inventory management options that will benefit your operation, such as:
Vendor-managed inventory — An effective asset management plan means you always have the critical spares and inventory needed for rapid repair. When you enroll in a vendor-managed inventory (VMI) program with a trusted supplier, they’ll help you set dynamic inventory levels, replenishment triggers, and reporting mechanisms to identify trends in usage.
Customer-managed inventory — If a business prefers to manage inventory internally, some suppliers offer customer-managed inventory (CMI) programs. CMI allows you to direct product replenishment as you see fit and shifts the responsibility of tracking inventory levels, placing orders, and managing supplier relationships to the company. This inventory model is ideal for customers requiring specific product configurations, high customization levels, or those needing inventory management solutions for remote or restricted locations.
Proactive stocking agreements — In addition to offering VMI or CMI, some suppliers can assist oil and gas companies with proactive stocking agreements. A proactive stocking agreement is a contract between a company and its supplier. Based on usage trends, the supplier agrees to house mission-critical inventory in their warehouse to eliminate the risk of stockouts. This option can allow for prompt procurement while alleviating any space constraints for housing mission-critical inventory.
Partnering with a supplier that knows your industry and collaborates with your organization to ensure critical spares are always on hand is the best way to better critical spares management and reduced downtime.
Motion & Control Enterprises (MCE)
mceautomation.com
1 The Association for Materials Protection and Performance
2 Siemens
Filed Under: Engineering Basics, Fluid Power Basics, Maintenance
