Want to Save your Company Money?

In the big corporate world, there is always opportunities to become more efficient and save some money for your company. But in the oil and gas industry one of the largest expenses and the biggest maintenance expense is your turnaround/shutdown (TAR) work. Some companies have been focused on improving their TAR maintenance for years and have the costs/barrel operating cost to prove it. Others have not taken the required efforts to ensure TAR success and have left significant cost and risk reduction on the table. There are a number of ways to improve your TAR maintenance, but there is one simple trick you can use to insure you’re in a position to execute a successful TAR at your plant. What is this trick? Well its really not a trick or a secret, but too many facilities still don’t do TAR Readiness Assessments prior to their TAR to insure they are prepared.

When a TAR requires hundreds or even thousands of temporary employees to complete, even a day or two overrun on the planned TAR schedule can be in the millions of dollars of additional cost. What is a TAR readiness assessment and why should I use this tool? A TAR assessment uses highly experienced TAR management professionals to review your plant’s readiness throughout your organization. This will include your TAR Organization, Planning, Maintenance, Inspection, Operations, Projects, Safety, Technical Services, Warehouse, and Procurement organizations. Any weaknesses in any of these areas will lead to additional costs and potentially a poorly executed TAR.

TAR maintenance requires the entire organizations focus and preparation to be successful. The problem is that the entire organization has a duty to keep the plant running as efficiently and safely as possible on a day to day basis and finding the time and resources to focus on the approaching TAR can be difficult. A TAR assessment will help your organization to identify areas that need attention/gaps as well as bringing focus to the organization on the need for attention on an approaching TAR. When should I do a TAR assessment? An effective TAR assessment is best completed far enough in advance to a TAR to allow the identified gaps to be closed. Twelve months prior to the TAR is best for the initial assessment, with a follow-up assessment 3 to 6 months prior to the start date. Even if you’re getting close to your TAR start and have no done an assessment, its best to complete one even if it’s only to verify that you should consider delaying your TAR. A delayed TAR will cost you much less money than a poorly organized and executed TAR.

TAR assessments are best completed by resources outside of your plant. This allows for an outside, unbiased and objective assessment of your organization’s readiness. As a Plant Leadership Team or TAR Manager, the cost of a good TAR assessment plan for your plant is negligible compared to the benefits of identifying required actions that can be tracked to completion to insure a successful TAR. As a TAR professional/leader for a good portion of my career, I can guarantee there is no better way to get the attention and focus of an organization than a good TAR assessment. The action items generated will need to be tracked and corrected of course, but the cost savings and peace of mind that you are prepared for the biggest maintenance event of the year is priceless.

Condition Monitoring Can Benefit My Company and Myself?

The rotating equipment used in a plant is essentially the heartbeat of the plant. Rotating equipment is used to move gases and liquids throughout the plant, allowing the different production process units to perform their intended duties. To provide the desired on-stream production rates of these units, the rotating equipment must be reliable. Maintaining the equipment’s reliability at the desired high level is a process that requires many different people’s abilities and skills. The rotating equipment must be both maintained and operated in a manner that allows continuous on-stream production in-order to stay competitive. While improving the reliability of the rotating equipment, safety will be improved for both the productions unit and the equipment itself.
Any disruption with the equipment can result in many issues, such as safety issues, loss production and thus lost revenue, chain reaction of additional problems, additional expenses AND a disruption of people’s lives (especially non-scheduled working hours).

There is a major difference between a piece of equipment abruptly stopping vs being able to “plan” a shutdown due to equipment problems. An abrupt change in a process opens a door of opportunity of additional issues that can lead to human error of quick decisions, fires, additional unit issues and safety issues.

Knowing that equipment cannot run forever, how can these abrupt equipment downtimes be minimized and even eliminated? The answer is in knowing the condition of the equipment and experience with the equipment. Not being able to “look” inside of equipment makes it difficult to know its condition. Or does it? There are many ways to determine the condition of the equipment without having to look inside of it. Just as a doctor can tell you of your health’s condition by doing tests, the equipment’s health can also be evaluated by routine monitoring and performing tests and in many cases, without taking the equipment off-line!. The monitoring and tests can assist with providing an assurance that the equipment should be able to function as intended and when certain signals are detected, just like the doctor discovers, the equipment’s condition can be closely monitored so that a planned event can occur instead of a sudden abrupt stoppage.

Condition monitoring – the process of monitoring one or more key parameters of condition (such as vibration, or bearing oil temperature) on something (such as rotating equipment) in order to identify a significant change which may be indicative of a developing fault using the data from the parameter(s). Condition monitoring is one of the main components of a predictive maintenance program. A predictive maintenance program uses the information / measurements of the different parameters to help determine the condition of in-service equipment in order to predict when maintenance should be performed. This approach promises cost savings over routine or time-based preventive maintenance, because tasks are performed only when necessary.

Even with condition monitoring, the type of equipment and how it is operated must be considered. For example, the deterioration of internal components may be jeopardized due to the operating parameters such as load, temperatures, pressures or speed. Evasive (look inside) work still needs to be performed in addition to condition monitoring programs, but the schedule can be optimized. Therefore, reviews of the operation of the equipment, experience from the plant and experience from the manufacturer all play a factor in the overall equipment’s condition monitoring / predictive maintenance programs.

But, so what, why should a plant do condition monitoring or predictive maintenance programs anyway? Don’t these programs cost a lot of money which eats away from profits? We are trying to reduce our budget, not increase it! True, there are some costs involved. However, we need to provide a safer plant and to reduce expenses and condition monitoring and predictive maintenance programs can do that. How? Well, wouldn’t it be good if equipment did not catastrophically fail? Wouldn’t it be good if equipment could be repaired when it needed to be and not just because the clock dongs? Those are some of the goals. Maintenance programs for a long time have been based on the clock or repair when it breaks. Many inspections have been performed because a clock said to do it and many times the results of the inspections were that the equipment was in good condition. That was good to know, but it cost a lot of money to determine. Also, when taking equipment out of service, there is a risk involved and many pieces of equipment have been damaged due to exercises that did not need to be done. True, there is a cost for programs or instrumentation for monitoring, but by choosing the right programs, the right instrumentation and applying it practically and effectively to the right equipment will provide that result. Keeping track of Key Performance Indicators (KPI’s) will provide the evaluations of whether programs are effective or a waste of money. Each plant needs to fine tune their programs to fit their plant. Sometimes doing something for one plant will not be as beneficial as doing it with another. Don’t get me wrong, there are activities that doing routinely with the clock makes appropriate sense. However, there are sometimes that we need to re-evaluate these activities and possibly there can be some changes and improvements made that may extend their life cycle.

Condition monitoring / predictive maintenance programs can apply to many different types of equipment such as rotating equipment, vessels, piping, electrical systems and many many others. The parameters for monitoring will be dependent on the equipment, but can include performance, visual and listening (human senses), vibration, temperature, ultrasonics, lubrication condition, corrosion, electrical current signature, partial discharge as some examples. Keeping track of the data is important for trending to determine where and how fast deficiencies are occurring.

Each plant should develop appropriate condition monitoring / predictive maintenance programs that fit that site while providing ownership and accountability. The extensiveness of each program is associated with the risk that is allowed. Like any other program, these programs require management’s buy-in and leading. The level, detail or extensiveness of the programs may be different for different equipment.

Each piece of equipment will have its different failure modes and the effects of failure defined. Knowing the ways that the equipment can fail, and the effect of the failure will determine the appropriate and best cost beneficial condition monitoring / predictive maintenance programs.

Each program is to define its purpose, details, person in charge, expectations and training of the program’s activities. It is crucial that each program is well understood throughout the plant with all people. To ensure that the program is providing the expected benefit, the (KPI’s) should be established, tracked and provided to the plant’s personnel. A program that is not providing the expected results needs to be modified or replaced. An audit performed by an outside source can provide benefits for the evaluations for the success and failures of the programs.

Implementing and performing condition monitoring / predictive maintenance programs may be a cultural change for a plant. The change will not be overnight and possibly needs to be slow and steady to achieve the goals. Not all people will react the same and working shoulder to shoulder with management’s direction will help with the cultural changing. Building a culture of continuous improvement will provide a direction that all people can associate with and will hopefully want to get on board.

Did I also say that by knowing the condition of the equipment, a “planned” outage can be scheduled well in advance to plan and coordinate along other work scopes within the plant?

Oh yea… Less unanticipated issues should lead to each worker having a more capable “planned” OFF time that is not “got to go fix this thing again” lifestyle that is theirs to use to enjoy with their family!

Actions to Take:
1) Ask if your plant uses current condition monitoring / predictive maintenance programs.
2) Review if you have relative KPI’s.
3) Talk with your Maintenance / Operations staff about their knowledge of your
condition monitoring / predictive maintenance programs.
4) If programs are not established or are not “making the grade” ask for assistance from others that have
had been associated with successful programs.

If this seems overwhelming or you need help, BoilerRock can assist with the identification, development, monitoring or auditing of these condition monitoring / predictive maintenance programs that can benefit your plant AND allow you to have time with YOUR family!!!

Terry Roehm

Terry Roehm is a Rotating Equipment Specialist with 40+ years experience in both the upstream and downstream businesses of the Oil and Gas Industry. He is a member of the American Petroleum Institute (API) serving on task forces for the mechanical subcommittee and is a past advisory committee member for the Texas A&M Turbomachinery Symposium. He has held various positions in maintenance and engineering involving specification, selection, procurement, testing, installation, startup, troubleshooting and turnaround planning for the rotating equipment. He has established programs, provided and developed training opportunities and has completed audits for companies to improve their operating and maintaining of rotating equipment. He has a Mechanical Engineering Degree from Purdue University and is a registered Professional Engineer in the states of Kentucky and Texas.

Dave Bryan Joins BoilerRock

Dave Bryan joins BoilerRock as Partner and Technical Director after completing 36 years with Marathon Oil. He brings Engineering, Maintenance and Reliability expertise from both the upstream and downstream sectors of the Oil and Gas industry. After graduating from Purdue University with a degree in Mechanical Engineering, Dave worked as a project engineer in Marathon’s Pipe Line and Refining organizations. He went on to roles as Refinery Inspection Supervisor, Corporate Fixed Equipment Subject Matter Expert and Refinery Maintenance Manager.

After 26 years in the downstream, Dave transferred to the Marathon’s upstream organization where he served as corporate Fixed Equipment Integrity Manager and Technical Authority/Reliability Manager for World Wide Production. Dave has extensive experience working with diverse cultures, applying engineering fundamentals and maintenance best practices. He is recognized for developing sustainable fit-for-purpose strategies and processes to improve facility reliability.

Initiatives that Dave can help clients with include:
• Mechanical Integrity Program Assessments/Audits
• Reliability & Integrity Strategy Effectiveness
• Turnaround Scope Challenges/Readiness Reviews
• Turnaround Planning & Management
• Risk-based Assessments & Applications
• PSM & API 751 (HF) Audits
• Root Cause Analysis/Incident Investigations
• Maintenance Optimization & Benchmarking
• Project Support (Fixed Equipment Engineering & QA/QC)

Dave currently holds API 510 and 570 certifications (previously held API 653 and NBIC) and is active on several API committees. He is a registered Professional Engineer in Indiana and Illinois. Dave’s been active for over 25 years with industry organizations focused on pressure equipment inspection and integrity.

Corrosion and Damage Mechanisms – How do I Learn More? “An example”

As we discussed in last month’s blog, Loss of Primary Containment (LOPC) or simply leaks in our process facilities is an all too common event. Sometimes we get lucky and it is a minor event but relying on luck is not any way to keep our plant’s safe and reliable. However, other times the leak leads to a serious event and we make the local or national news or worse yet; someone gets injured or loses their life! Today’s blog will be focus on a simple example of using API-571 “Damage Mechanisms affecting Fixed Equipment in the Refining Industry” to improve your corrosion and damage mechanism knowledge.

In today’s example, I will assume that I am the area inspector or engineer working in my refineries Crude unit. Therefore, the first thing I do is review the Process Flow Diagram for the Crude Unit/Vacuum in Figure 5-65. (See example in blog photo) For this example, I’m interested in the atmospheric tower side draw piping. So what damage mechanism do I need to worry about for this area of the Crude unit?

DM#1 Sulfidation
DM#6 Naphthenic Acid Corrosion

So, I need to understand more about damage mechanism DM #1 -Sulfidation—Looking at the DM table of contents, we see that Sulfidation is covered in Section 4.4.2 on pg 4-159. Moving to page 4-159 you will find six pages of information related to sulfidation, including pictures, graphs and other details including: High Level Description of Sulfidation, Affected Material, Critical Factors, Affected Units & Equipment, Appearance of Sulfidation, Prevention/Mitigation, Inspection & Monitoring, and Related Damage Mechanisms. Sulfidation (also known as sulfidic corrosion) is the corrosion of carbon steel and other alloys resulting from their reaction with sulfur compounds in high temperature environments. (>500F) There are eight Critical Factors related to Sulfidation discussed with one of them being the alloy composition (determined by the alloys ability to form protective sulfide scales), temperature (increased corrosion as temperatures increase) and concentration of corrosive sulfur compounds.

Section 4.4.2.7 gives you information about the how to Inspect and Monitor for Sulfidation Corrosion:

  • Evidence of thinning can be detected using external ultrasonic thickness measurements and profile radiography.
  • Process conditions should be monitored for increasing temperatures and/or changing sulfur levels. See API 584-Integrity Operating Window (IOW) for more information on issues that may assist in the development of an IOW program.
  • Proactive and retroactive PMI programs are used for alloy verification and to check for alloy mix-ups in services where sulfidation is anticipated. Note: Inadvertent mixing of Alloy material in a piping circuit has led to several major incidents in the Oil and Gas industry.

The remainder of the section contains additional information related to Sulfidation including graphs giving you information on corrosion based on the affects of temperature, Sulfur content and Alloys in your system.

Now, follow the same review of 571 for DM#6- Naphthenic Acid Corrosion and you will have a good understanding of what you need to look for and how to find it for the Crude Atmospheric Tower Side Draw Piping.

API-571 is an excellent resource to use for improving your corrosion knowledge and that of your work force. I hope this very simple example will encourage you to review API-571 for your area of responsibility or area of corrosion knowledge that you would like to learn more. Additionally, API has an API-571 Certification Program available for anyone with a keen interested in corrosion and potentially becoming a technical resource for your facility. See http://www.api.org for additional information.

Actions to Take:

  1. Complete a quick review of API-571.
  2. Review the damage mechanism PFD for your unit or unit you would like to learn more about.
  3. Have one of your employees present an overview of one damage mechanism for their area during a weekly meeting. The employee and those present will all learn from this type of exercise.

Please contact BoilerRock if you need assistance with any of your Reliability or Asset Integrity issues.

Reference: “API Recommended Practice 571, Second Edition. Washington DC: API Publishing, 2011”

Lessons Learned- How to Prevent the Next Major Incident

Since the Process Safety Management (PSM) standard was introduced by OSHA in the 1990’s, no other industry sector has had as many fatal or catastrophic incidents related to the release of highly hazardous chemicals as the Oil and Gas industry. If you’re not familiar with the PSM standard, it outlines 14 elements to follow which assist facilities in implementing management system requirements needed to prevent loss of containment and associated fire, explosion and loss of life incidents. In response to the large number of fatal or catastrophic incidents in the industry, OSHA initiated the Petroleum Refinery Process Safety Management National Emphasis Program (NEP), in June 2007. The purpose of the NEP was to verify the employers’ compliance with the required PSM elements. Since the start of this review over 10 years ago, the industry has made many improvements and advances but continues to have deaths and major incidents. We must take the lessons learned from other facilities and not repeat the same issues again and again.

This summary highlights 5 elements (5 of 14) of the PSM standard where OSHA issued the most citations during the NEP program review, with the Mechanical Integrity element being the worst actor.

■ Mechanical Integrity (MI) – 6 repeat findings
■ Management of Change (MOC) – 5 repeat findings
■ Process Safety Information (PSI) –4 repeat findings
■ Process Hazards Analysis (PHA) –3 repeat findings
■ Operating Procedures – 2 repeat findings

The 20 most cited reoccurring OSHA findings are as follows:

MI:
• Equipment Deficiencies not properly addressed
• Inspection, Testing and Maintenance Procedures not followed
• Thickness measurements not properly managed
• Inspection frequencies not properly managed
• MI Data not properly reviewed, and anomalies resolved
• Site Specific inspections and Tests not properly established

MOC:
• Changes in equipment design not properly reviewed and documented.
• Changes in operating procedures not properly reviewed and documented.
• Changes in Inspection & Test procedures not properly reviewed and documented.
• Changes to non-process facilities not properly reviewed and documented.
• Time limitations on Temporary Changes not established

PSI:
• Relief System Information not properly documented
• Facility Siting modeling and protection employees
• P&ID’s not accurate
• Relief System Design & Design Basis not documented or followed

PHA:
• Recommendation Resolution not properly addressed
• Facility siting factors not included in PHA review
• Human Factors not included in PHA review

Operating Procedures:
• Emergency S/D procedures not properly addressed
• Safe work practices not adequate

I will dive deeper into a few of these repeat OSHA findings in the future, but if you would like additional details the entire 2017 OSHA publication is available here.

Actions to Take:
1) Review the list of OSHA repeat findings and verify that your PSM or Company Management System addresses these repeat findings sufficiently.
2) If any of the repeat findings are of interest/concern, review the attached OSHA document for additional details.
3) If you are not familiar with your role in your companies Process Safety Management (PSM) program discuss with your supervisor or the PSM/Management System leader at your facility.