NEWS RELEASE                                                                                         January 2018

Growing Markets for Combust, Flow, Treat and IIoT in Shale Oil and Gas

Shale oil and gas are contributing to solid growth in the U.S. economy and increasing markets for combust, flow and treat companies.  The opportunities lie in production, transportation and processing.  These opportunities are covered in two McIlvaine publications listed below and a free webinar on February 7.

The Industrial Internet of Things (IIoT) empowered by the Industrial Internet of Wisdom (IIoW) will play a large role in the competition between oil and gas extracted from shale in the U.S. and conventional extraction in the Mid-East and elsewhere.  The production process for shale involves relatively small fields and short well lifetimes.  This results in more things to be connected and a greater advantage for IIoT.

IIoW moves beyond the data analytics and subject matter experts to new and better solutions with the wisdom of subject matter ultra-experts.  New solutions and the ability to create lower and lower costs for extraction of shale oil and gas has been a gigantic achievement for the U.S. shale industry.  IIoW will provide a route to continue making these improvements.

Extraction: The large number of components needed in shale fracturing creates a big opportunity for IIoT. A mobile fracturing unit can be equipped with real time monitoring of acidizing units, fracking pumps, chemical additive units, blenders, large generators and other components. The specific signals analyzed include pressure signals, oil temperature signals, horsepower signals, rpm signals and other parameters.

Transportation:  New gas pipelines are expected to boost output from shale fields in three states by giving producers access to new domestic and international markets. 

The U.S. could become a net exporter of natural gas in 2018 for the first time since 1957 due to increased sales to Mexico, the opening of new markets through liquefied natural gas and declining imports from Canada. The United States is shipping LNG to at least 20 foreign markets and exports of LNG will continue to grow as terminals on the Gulf Coast reach capacity and companies expand or develop new terminals.

Shale oil transportation is handicapped by the lack of east-west routes. More pipelines are needed to accommodate the increasing production.

IIoT and remote O&M are very cost effective due to the remote location of many operations.  For example, gas with H2S is piped from the Eagle Ford basin.  Gas driven emergency shut off valves are not an option because of the H2S. The location is remote from any electrical supply.  The solution was a remotely monitored battery operated valve.

Processing:  Refineries are expanding to accommodate the increasing oil production.  Significant quantities of gas are being converted to LNG.  Other processes include the utilization of by-products. Shale gas produces by product liquids. Shell Chemicals' $6 billion ethane cracker being built in Beaver County, PA is just one of 13 ethane crackers being built between 2017 and 2021.

Shale oil produces significant amounts of by-product methane. New regulations are limiting flaring of this gas and requiring processing and utilization.  All these processes contain many valves, pumps, and treatment modules which can be remotely monitored and controlled.

      Information on the IIoT shale opportunity is supplied in N031 Industrial IOT and Remote O&M

Details on the projects and participants are covered in  N049 Oil, Gas, Shale and Refining Markets and Projects

To register for the February 7 webinar click on Free Market Webinars