The energy business is not easy. Obtaining, distributing and marketing shale-associated oil and gas is an arduous task that many are ill-equipped to juggle on their own, leaving an open door for automation companies to implement their innovative and sophisticated processes.

During the past decade, as the boom reverberated throughout North America, midstream infrastructure has taken center stage and the need for automation has followed. As more upstream and downstream related projects take shape, linking the two, with a little high-tech help, becomes essential, says Marvin Walton, regional director of oil and gas for Rockwell Automation.

"You have pipe mills, skid manufactures for pumps and compressors, as well as the downstream chemical and power industries that are significantly impacted,"he tells Midstream Business. "All of those require automation to be more effective and competitive in the marketplace.

From every angle

Rockwell Automation is a global operation that works with a gamut of industries, but oil and gas, especially midstream, has become a core focus. Rockwell offers those in the oil and gas industry the chance to take control of their businesses through integrating control systems, safety and power systems, information software and enhanced network technology, just to name a few.

Automation expertise applied to the midstream can enhance both the operation and marketing sides of the business including keeping track of gathering lines, compressors and pump stations and helping a business keep track of mechanical and maintenance issues. gAutomation services allow companies to respond quickly if there is an issue," Walton says. "It also allows companies to have a backup plan to help prevent downtime, in terms of the energy being collected at the production sites."

Walton says that automation also helps integrated midstream companies keep track of real-time market conditions, which can change on a daily basis. For example, software that accesses the dayfs spot-market prices helps companies make educated market decisions based on the price of natural gas liquids (NGLs) at the time.

"It can determine how much of the NGLs you should recover versus ethane rejection or putting a percentage of those back into the residue or gas stream," he says. "There are business and operational angles to it. These angles help keep the production field up and running, as well as help processing the hydrocarbons and marketing those in the most beneficial fashion."

Future design

Oftentimes midstream operators aren't even aware of automation's value to their business, says Joe Schipani, vice president of business development for Cimation, a technology company providing automation services for companies in the energy industry.

Human error is inevitable, Schipani says, but designing programs around that can be extremely beneficial. Designing a program around the "human factor" can be a valuable asset to the future of the business, he tells Midstream Business.

"So much of managing a midstream pipeline or plant has to do with an operator looking at an electronic screen and making quick decisions," he says. "Designing a system to account and compensate for the inevitable is where there are unbelievable gains to be had with safety and operational effectiveness."

Ranked by Forbes as one of the most promising companies in the U.S., Cimation is positioning itself as one of the premier shale-automation companies and has designed functional, technical programs for clients like Targa Resources, Enbridge, DCP Midstream, MarkWest Energy and Energy Transfer Partners. Many of these programs, like the company's real-time data terminals, are custom designed for each customer. But that is all due to change in the coming decade, Schipani says.

"I think we are getting close to a point where there will be some sort of discontinuous innovation that will change the way the industry works, and it is going to change the whole industry ecosystem," he says. "Pretty soon there will be no configuration. It is like buying the Ikea model versus buying furniture that is already built. Things are going to go in the pre-built direction in terms of software.

"I think, sometime in the next ten years, you will see somewhat of a discontinuous evolution."

Finding your niche

The business has changed, and it's changed fast. Keeping up with market demand is not easy. But what happens when your niche market is one of the hottest in the industry? Alberta-based, Detechtion Technologies has worked in the North American compression industry since 1998, introducing its web-enabled Enalysis software. Using actual compressor data such as pressure and temperature, Enalysis provides an accurate and detailed description of the operation of the compressor and identifies an optimum setup to maximize throughput, minimize fuel usage and downtime.

"Detechtion has been helping its clients wade through the recent onslaught of compression demand," Andrew Miles, the company's chief operating officer and general manager, tells Midstream Business. "Once our clients have their compressors up and running, we are able to help them understand their automation programs.

"You have to worry about fuel burn, emissions and tweaking the compressors so they are operating efficiently at all times," he says. "The more automation you can put on a compressor, the faster you can react to changing and ambient conditions. We are in the business of moving data and converting into actionable information as we provide our customers with readable and understandable reports so they can better run their operation."

Detechtion's web-based tool is also an aide to one of the industry's biggest concerns - the 'big crew change'. With the growth of the energy industry, there is additional demand for compression and the need to attract new talent. There's a gap, Miles says, between the seasoned workers who have years of field experience and the younger, technologically savvy generation that is taking its first steps into the business.

"Through our web-based program we are able to marry those two together," he says. "We can help the new generation, who like to use technology, learn how to run their compressors faster and more efficiently. For experienced technicians, this is another tool in their box to help them do a better job as well."

In more ways than one, automation is vital to the midstream industry. Today, especially in the compression business, there is just so much to think about, Miles says, and automation services can ease the necessary burdens of data management and regulatory compliance as well as running day-to-day operations.

Comments