How do you spot a leaking oil pipeline?
Pipeline leaks, ruptures, and spills are increasingly causing property damage, according to a new study, and detection systems to detect pipeline leaks may be lacking.
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Anthony Swift, an attorney with the Natural Resources Defense Council, said that the report’s findings show that industry talk on leak detection systems doesn’t match the realities of the situation.
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“These systems aren’t as effective as many pipeline operators suggest,” said Swift. (Related article: Oil Production Remains the Same, but Rig Counts Continue to Grow)
He is hopeful that the report will lead to better improvements in leak detection engineering and public transparency.
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Industry groups such as the American Petroleum Institute (API) and the Association of Oil Pipe Lines (AOPL) said that the report is flawed.
“The report includes an extensive recitation and largely academic description of LDS [leak detection systems], their technologies and potential applications,” said API and AOPL in a joint statement.
“However, this study presents relatively little in-depth data or analysis of the actual experiences of operators using these technologies, their operational experiences, or benefits and costs in practice. The study hints at many of these issues, but never explores them substantively or with any numerical analysis.
“A critical reader is left unable to make any accurate assessment on the technical, operational or economic feasibility of LDS (Leak Detection Systems-ed).”
Enbridge (ENB-NYSE;TSX) is a member of both API and AOPL. They are researching and testing leak detection technologies that are suitable for its pipelines, including Northern Gateway, said Enbridge Spokesperson Graham White.
“[This initiative] includes an evaluation of fibre optic and odour sensing cables to ensure the technology actually performs as vendors claim,” said White.
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(Responses to these comments by the pipeline industry from Kiefner and Associates are also available at the public website: https://primis.phmsa.dot.gov/meetings/Mtg80.mtg)
Shaw says the leak detection technology industry has been caught in a Catch-22 situation for years—they find it difficult to develop new products because there aren’t any major sales to pipeline operators.
Natural gas pipelines will also get discussed in the report to Congress, though most of it will be on liquids pipelines.
Since the last report, a natural gas pipeline exploded in San Bruno California, just south of San Francisco, killing 8 people. Operator PG&E (PCG-NYSE) was found negligent but regulators also came under scrutiny as being too trusting of the companies operating the pipeline.
In conclusion, leak detection technology around pipelines is not modern, scientific or technical. In today’s age, that will just not fly politically.
The challenge for the industry is to either take the lead, increase their leak detection budgets and adopt new technology, or allow government or regulate them into action. What great PR that would be for them!
Both the US and Canada need thousands of miles of new pipelines to get their fast growing supply of oil to market. This could be a big first step in winning over public opinion with billions of tax dollars and profits on the line.
Original source: http://oilprice.com/Energy/Energy-General/Are-there-Big-Changes-Ahead-for-the-Pipeline-Industry.html
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