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Chapter 8 This chapter focuses on the movement of crude by pipeline, although attention is also given to other transport modes, including tanker vessels, railcars, and tank trucks. A network of gathering lines carries this oil from the wells to a location in or near the oil field for preliminary processing. A separator at a well site is used to remove both the natural gas and the water-usually contained in any reservoir. Any solid materials (e.g., sand), as well as some dissolved salts, are removed from the raw crude. Condensate is light hydrocarbon liquids extracted during onsite natural gas separation. When the stored oil is ready for transportation, a technician usually convert measured oil depth to oil volume. Measures the temperature of the oil Lowers a gauge tape into the tank to measure oil depth— similar to using a dipstick to check a car engine’s oil level Takes a sample of the stored oil by dipping a small bottle into the tank or by opening a small valve on the tank’s side Then, by calculation and analysis, the technician will: Convert the measured oil depth to oil volume, using a gauge table or computer algorithm Separate basic sediment and water (BS&W) from the oil sample, using a centrifuge Determine how much BS&W is contained in the measured oil volume. Because volume of oil changes with temperature, industry standards call for correcting the volume for a temperature of 60°F. A given batch of oil moves at 3-4 miles per hour through a mainline, propelled by centrifugal pumps sited every 20-100 miles (depending on terrain). Points at which pipelines come together are called hubs (or marine terminals if near a port). Significant storage volume is generally available at such facilities. Short-haul lines are also called spur, stub, or delivery lines. A major hub for U.S. crude oil pipelines is in Cushing, Oklahoma approximately 500 miles north of the Gulf of Mexico. Other primary U.S. hubs and marine terminals for crude oil are at New York Harbor; the Gulf Coast (Texas-Louisiana coast); Tulsa, Oklahoma; Chicago; and Los Angeles. Sumed (Suez-Mediterranean) Pipeline moves 2.5 million b/d Saudi and other Mideast oil to Europe across Egypt. Most sections of an oil pipeline operate at relatively low pressure (up to about 150 psi). Pipe in these sections is made from various types of plastic, fiberglass, or steel. Most pipelines are buried three to six feet below the ground. On January 18, 2012, President Barack Obama denied a construction permit for the Keystone XL pipeline. Steel pipe is fabricated with various wall thicknesses and OD ranging from 4.5 to 48 inches. The pipe is also coated/ wrapped to protect it from rust, chemical attack, and electrical current flow using materials ranging from fusion-bond epoxy, coal tar, plastics, and tapes to shrink sleeves and even concrete. SCADA systems are used to control a wide range of large-scale industrial and utility systems, including oil and gas pipelines. Valves (and their actuators) control or cut off oil flow in response to operational changes, maintenance needs, or emergencies Pumps maintain pressure levels to keep the oil flowing (analogous to a compressor in a natural gas pipeline) Electric motors, engines, and turbines (running on liquid fuels or natural gas) that provide the power needed to run pumps Meters that accurately measure the amount of oil being moved or delivered Other instruments, sensors, and computer-linked components that provide real-time information about the condition of all sections of a pipeline Pipeline and Hazardous Materials Safety Administration [PHMSA]), the Association of Oil Pipe Lines, the American Society of Mechanical Engineers, API, and the Interstate Natural Gas Association of America governmental and industry organizations track and report releases from U.S. pipelines. Third-party damage to pipelines and equipment Corrosion (internal and external) and stress corrosion cracking Mechanical failures, including manufacturing and construction flaws Natural hazards (ground motion, weather, erosion due to water flow) To assess condition of pipelines sophisticated internal line inspection (ILI) device, called smart pig, that travel through a pipeline looking for metal loss, wall deformation, and cracks. SCADA systems are used to control a wide range of large-scale industrial and utility systems, including oil and gas pipelines. In electrical current/voltage survey technicians measure the difference in voltage between the pipe and the adjacent soil or the magnitude of current flow between two points on the pipeline. Direct Assessment uses statistical analysis to identify the most likely problem locations along a pipeline. Shell’s Perdido platform began producing oil and gas in March 2010 from a network of 35 wells at a water depth of about 8,000 feet. Offshore pipes and equipment must be strong enough to handle both the crushing pressure encountered at the seafloor—about 2,700 psi at a depth of 6,000 feet—as well as the internal pressure needed to lift oil to sea level. A jumper steel or flexible composite pipe typically 6–12 inches in diameter—carries hydrocarbons to a manifold if the distance is about 100 feet or less. For longer distances (up to tens of miles), the connecting pipe is called a flowline. Lines and manifolds on or close to the seafloor are typically insulated to counteract the effects of water temperatures as low as 30°F. Hydrate is a crystalline material, similar in appearance to a snowball, in which methane molecules are trapped in a lattice of water molecules. The production riser pipe carries collected hydrocarbons upward to the production platform, sometimes aided by pumps on the seafloor. Flexible pipes for off-shore are fabricated by wrapping an inner steel carcass core with alternating layers of steel wires and thermoplastics. After crude oil undergoes initial cleanup aboard the production platform, it is either off-loaded to a shuttle tanker for the trip to shore or pumped down through another riser (called an export riser) to enter a subsea pipeline. One common method in pipeline assembly is to weld together and coat pipe sections—typically 40– 240 feet long and 16–42 inches in diameter, with walls at least 1 inch thick— at a shore-based facility. In j-shape pipeline assembly, operators weld and coat the pipe sections aboard specially designed pipe-laying vessels that can be as long as a football field. The connected sections are then gradually eased into the water from the stern of the slow-moving vessel as it follows the installation route. In reel pipeline laying, suitable only for laying pipe 6–18 inches in diameter, operators weld together and coat the pipe sections on land and then wind the finished product onto very large reels. (More than 30,000 feet of 6-inch pipe can fit on one such reel). The Cameron Highway Oil Pipeline System is a 380-mile, 24- and 30-inch oil pipeline that extends along the Outer Continental Shelf of the Gulf of Mexico. It has the capacity to deliver more than 600,000 b/d of oil from several major deep-water fields to the Texas coast, connecting directly with three refineries and four terminals. Crude oil is transported around the world on seagoing tanker ships -a mode of delivery that is second only to a pipeline in cost-effectiveness. Crude oil tankers are typically classified by deadweight metric tonnage (DWT)—the displacement of a fully loaded vessel minus its weight when completely empty (with no cargo, fuel, ballast, crew, passengers, water, or provisions). A vessel’s cargocarrying capacity is about 95% of its deadweight metric tonnage (DWT). Since 2010, no singlehull tanker vessel of 5,000 DWT or larger has been allowed to operate in U.S. waters unless it has a double bottom or double sides, under the terms of the federal Oil Pollution Act of 1990. The term supertanker is used for very large crude carriers (VLCCs) and ultra-large crude carriers (ULCCs), which can carry a cargo of more than 2 million barrels. One DWT of capacity is equivalent to about 7.5 barrels of oil (though different grades of crude have different densities). Barges are also used to move oil between onshore storage terminals. In 2010, some 92 million barrels of crude were transported by barge in the United States, according to EIA. EIA reported that crude shipments from domestic producers to U.S. refineries by tanker truck totaled approximately 145 million barrels in 2010. For railcars, the corresponding figure was roughly 9 million barrels. A facility with several storage tanks is called a tank farm. Salt caverns are also used to store crude oil (as well as natural gas and propane). The caverns are created within underground salt domes or beds by pumping water into the formation to dissolve the salt. The brine is then pumped out to leave a hollow cavern. U.S. Strategic Petroleum Reserve (SPR) consists of 4 sites, on the Gulf Coast, whose exact locations are not disclosed for security reasons. According to EIA, approximately 4.1 billion barrels of oil are held in strategic reserves around the world (including in the United States).