As you may already know, corrosion remains a huge problem in all sectors operating in a highly aqueous environment. Oil and gas carry highly impure substances with them such as salt water and hydrogen sulfide which are highly corrosive. Prolonged extraction of these components could make internal surfaces lose their mechanical properties like force and pliability. Workovers done due to equipment failure are not only disruptive but also costly. After a thorough pursuit, I found that an average of 0.18 corrosion related workovers per well is performed every year, this is according to a report published by DNV GL Group.
Corrosion erodes profit
According to a report published on DNV GLGroup website, the average failure rate is 0.6 failures per year per well, where 30% is related to corrosion.
Corrosion costs the world economy
$2.2 trillion a year.
In 2013, Breaking Media Inc. has cited World Corrosion Organization as saying that corrosion costs the world economy a total of $2.2 trillion or about 3% of the world's GDP. According to a report published by DNV GL Group in 1999, corrosion related damages have caused the oil and gas production industry in the US an average annual cost of $1.372 billion. They've broken down this cost into 42.9% ($589 million) in surface pipeline and facility costs, 33.7% ($463 million) in downhole tubing expenses, and 23.3% ($320 million) in capital expenditures related to corrosion. Breaking Media Inc. also reported, “As operating environments in these industries become increasingly challenging as a result of higher temperatures, higher pressures, higher corrosion and higher wear, the demand is increasing for materials that can better withstand these environments. Internal research shows that of the 225 oil and gas fields now being planned and developed across the globe, 158 are highly corrosive.”
Be proactive towards corrosion damage
To understand the total number of workovers due to corrosion, we need to take a closer look at costs involved in corrosion-related failures, for this event primarily triggers a workover. According to a report published on DNV GL Group website, the average failure rate is 0.6 failures per year per well, where 30% is related to corrosion. They've added that the average cost of a failed well is $3,000. These numbers would mean that there are 0.18 corrosion-related failures per year per well denoting that a total of $540 is spent on every oil and gas well in the US due to failures caused by corrosion. If there's a total of 600,679 producing oil wells (Source: World Oil) and 514,786 producing gas wells (Source: US Energy Information Administration) in the US, it would mean that a total of $602.4 million is spent in repairing oil and gas wells due to corrosion.
Interestingly, a report published by Oilfield Review has pointed out that due to the almost impossible nature of corrosion prevention, experts are now leading towards the view that regulating the corrosion rate might be a more economical and feasible remedy. In the recent years, corrosion engineers have been more proactive in assessing financial damages caused by this adversary, and furthermore, investigating on various approaches that could reduce the occurrence of this problem.