Why evaluate corrosion?

It has been estimated that 1% of the total operating costs of the petroleum industry could be saved by the correct
application of existing corrosion protection technology. Wireline corrosion evaluation services can be used to save
money throughout the life of a well. Corrosion control is particularly cost effective for deep or remote wells,
wells expected to have a long lifetime, or wells producing CO2 or H2S.

When problem areas are predicted, prevention budgets may be spent wisely. It is worthwhile to monitor for weak
points because corrosion or damage prevention is less costly than repair. And precise identification of failure can be
used to minimize repair expense.

The paper indicates that oil-well corrosion can be economically controlled with present methods, and
suitable ways of controlling the various types of corrosion are discussed to the extent of local experience.
The importance of maintaining complete records for an evaluation of operating costs before and after
corrosion treatment is explained, and typical examples of such records are reviewed. The mechanism of
establishing a self-supporting corrosion-control program which will Insure continuous protection for oil
wells is outlined.

Corrosion is a waste broadly defined as destruction of metal. However, to the oil operator, this waste is
immediately translated into excessive cost and breakdowns on his wells. These costs aggregate
considerably more than the value of the metal products. destroyed by corrosion. Every oil operator has
seen many. Example of corroded rods, tubing, pit holes, and \"eaten-up\" pumps which clearly
demonstrate to him the significance of corrosion. Furthermore, most oil men realize, at least in part, the
magnitude of well-pulling and material-replacement costs. The purpose of this paper is to help combine
these past observations into an overall picture of the more important physical and economic aspects of
corrosion. It is hoped that results gained from experiments described herein will prove a useful tool for oil
operators.

Our ultimate purpose is to apply effective and economical means of controlling the corrosion of producing
equipment in oil wells. In order to attack this problem in a systematic manner, it is first desirable to be
familiar with the common types of corrosion and some of their causes. Second, the possible effective
means of control for various types of corrosion should be reviewed. Finally, a program should be set up to
maintain control once it has been established. To produce such a control program, a good record of the
economics involved is essential because, in the final analysis, the best criterion for judging effectiveness
of corrosion control is the net saving being secured. This cost information can be kept, as this paper will
show, by use of data from actual field trials.

Large amounts of money and effort have been expended by the petroleum industry in recent years to
combat corrosion of metal, for the tremendous annual economic loss more than justifies all such trouble
and expense. Some work has been done on the extension of applicable theory, but the major portion has
been toward development of practical corrosion-mitigation methods. In this development work the oil
operator is often working on a t least a partial cut-and-try basis. Generally accepted theories of corrosion
phenomena are of considerable help as a guide, and are constantly being enlarged and improved; but the
most significant recent developments are the result of field trials. Therefore, the authors believe that the
problems and results in starting and maintaining an oil-field corrosion-control program may well be of
Interest to production people in general.

Corrosion is an unfortunate given in the oil and gas industry. If that corrosion goes undetected, the results
can be disastrous, and very costly. Only with proper attention to safeguards, maintenance and modern
protective technologies can help the world's oil supplies remain steady, and the environment safe from
disaster. The total annual cost of corrosion in the oil and gas production industry is estimated to be $1.372
billion, broken down into $589 million in surface pipeline and facility costs, $463 million annually in
downhole tubing expenses, and another $320 million in capital expenditures related to corrosion.

Fleming Gulf's “Corrosion Management Summit in Oil and Gas 2012” will address the key issues and
prevention strategies in corrosion in the Oil and Gas industry as well the technology implemented to deal
with the assets to corrosion control.

The presence of carbon dioxide (CO2), hydrogen sulphide (H2S) and free water can cause severe
corrosion problems in oil and gas pipelines. One of the biggest shortcomings in the field of corrosion
management is the lack of skilled personnel. Protecting the integrity of oil and gas assets depends both
on effective corrosion engineering, and corrosion management. The industry needs skilled engineers
understand the industry, the chemistry of corrosion and the technologies required to address it.

Corrosion management is part of an overall system, which develops, implements, reviews, and maintains
both policy and strategy for managing, mitigating and preventing corrosion. While it may not be possible
to completely eliminate any instance of corrosion and the leakage that results, proper attention,
maintenance and technology will keep it to a manageable level.