Oil & Gas

You are here

» Oil & Gas

The total annual cost of corrosion in Oil and Gas industry is estimated to be $1.372 billion, out of which $589 million is for surface pipeline and facility costs, $463 million is for downhole tubing expenses, and another $320 million is for capital expenditures related to corrosion.

The majority of the cost-savings for any oil production facility is the prevention of failure in one of the production arteries (downhole tubing, surface pipelines, production vessels, etc). Money lost through lost production far outweighs expenses associated with maintenance. The corrosion problems differ from location to location depending on many factors including the field environment. To remain competitive with the world market, maintenance costs must be kept to a minimum.