Oil and Gas Sector

Oil and Gas Sector 2016-12-03T04:54:50+00:00

For the oil industry the corrosive agents attack and cause damage throughout the production chain, from extraction to refining oil, through the flow ducts. In the specific case of oil wells, equipment installed inside are subjected to varying conditions of temperature and pressure, being inserted into a corrosive and, or abrasive environment. The fluid produced consists of a mixture of petroleum compounds, salt water, natural gas and suspended solids, such as sand.

While the excavations of wells are being explored greater amount of sand is produced and mixed with the oil, water and gas.

The degradation of the physical integrity of the equipment within the wellbore takes of course a consequence of the aforementioned that leads to serious financial loss. These losses are generated not only met by the need to replace the damaged part as well as the loss of production due to the need to interrupt normal operation of the well but also very dangerous.

Thus, Rustless® is used in order to increase the useful life of the equipment, making them able to resist wear and corrosion.


Domestic oil and gas production is considered a stagnant industry in the U.S. because most of the significant available reserves have been exploited. Direct corrosion costs associated with  this activity were determined to be about $1.4 billion, with $0.6 billion attributed to surface piping and facility costs, $0.5 billion to downhole tubing, and $0.3 billion to capital expenditures related to corrosion.


Corrosion is not considered a significant problem in mining operations. The primary life-limiting factors for mining equipment are wear and mechanical damage. Maintenance painting, however, is heavily relied upon to prevent corrosion, with an estimated annual expenditure of $0.1 billion


U.S. refineries represent approximately 23% of the world’s petroleum production—the largest refining capacity in the world. The nation’s 163 refineries supplied more than 18 million barrels per day of refined petroleum products in 1996, with a total corrosion- related direct cost of $3.7 billion. Maintenance expenses make up $1.8 billion of this total, vessel expenses are $1.4 billion, and fouling costs are approximately $0.5 billion annually.


The chemical industry includes those manufacturing facilities that produce bulk or specialty compounds from chemical reactions between organic and/or inorganic materials. The petrochemical industry includes facilities that manufacture substances from raw hydrocarbon materials such as crude oil and natural gas. The pharmaceutical industry formulates, fabricates, and processes medicinal products from raw materials. Annual direct costs total $1.7 billion for this sector (8% of capital expenditures). This does not include corrosion costs related to operation and maintenance—this would require detailed study of data from individual companies.


The $165 billion pulp, paper, and allied products industry supplies the U.S. with approximately 300 kg of paper per person each year. More than 300 pulp mills and 550 paper mills support its production. The harsh processing environments of these facilities make corrosion control especially costly and challenging. The direct annual cost for this sector is $6 billion, calculated as a fraction of the overall maintenance costs.


According to the National Agricultural Statistics Service, about 1.9 million farms in the U.S. produce livestock and crops. The primary reasons for replacing machinery or equipment include upgrading and damage from wear and corrosion. The corrosion cost in this industry was estimated to be $1.1 billion, based on the assumption that corrosion costs represent 5 to 10% of the value of all new equipment.


The food-processing industry is one of the largest manufacturing industries in the nation, accounting for approximately 14% of total manufacturing output. Stainless steel (SS) is widely used in this industry because of food quality requirements. The total estimated corrosion cost is $2.1 billion, including SS used for beverage production, food machinery, cutlery and utensils, commercial and restaurant equipment, appliances, aluminum cans, and the use of corrosion inhibitors.


Computers, integrated circuits, and microchips are exposed to a variety of environmental conditions, and corrosion manifests itself in several ways. It is also insidious and cannot be readily detected; therefore, when corrosion failure occurs, it is often dismissed as a product failure and the component is replaced. Although the cost of corrosion in this industry could not be estimated, it is believed that a significant part of all electric component failures is caused by corrosion.


The nation’s natural gas distribution system has 2,785,000 km (1,730,000 miles) of relatively small-diameter, low pressure piping that includes 1,739,000 km (1,080,000 miles) of distribution mains and 1,046,000 km (650,000 miles) of services. Many mains (57%) and service pipelines (46%) are made of steel, cast iron, or copper, which are subject to corrosion. The total annual direct cost of corrosion was estimated to be $5 billion.