This is Part 2 of a two-part look at oil and gas industry maintenance issues. You can find Part 1 here. In this part, we’ll talk about a case study that illustrates the importance of maintenance optimization.
Oil and gas refinery maintenance is a big issue in the industry.
Outdated, inefficient procedures are not only unnecessarily costly, but they’re also a potentially dangerous aspect of oil and gas operations.
This case study, created by Lloyd’s Register, dives into a situation that was happening at one facility, and how careful analysis and the implementation of new oil and gas refinery maintenance strategies turned things around.
The problem: The burden of oil and gas maintenance
One offshore oil refinery operation was several years into what is typically a 30-year lifespan.
With approximately 50,000 pieces of equipment that require upkeep, over its lifetime, this oil refinery maintenance will end up in 750,000 work orders that will take 9,000,000 hours to complete.
That adds up to nearly $2.5 billion in costs to keep operations running.
Many facilities exceed their expected 30-year-life, making the financial burden even greater than what was originally anticipated.
And there was no reason to think this refinery would be any different.
Not only is oil and gas refinery maintenance crucial to keep processes running efficiently, it’s also a safety issue – 27% of all offshore injuries are related to upkeep.
But that’s not the only oil and gas refinery maintenance problem that needed to be dealt with.
Over-maintenance was also an issue.
Performing needless service to equipment was creating a backlog, and some resulting injuries could have been avoided.
It was critical to find a solution.
The solution: Refinery and pipeline maintenance optimization
One operator had the task of evaluating the current procedures and coming up with a maintenance optimization plan that would clear up the backlog (and prevent it from happening again), ensure the safety of the workers AND be cost-effective in the current financial climate.
The operator determined that there were a couple areas that could have a great impact.
- Equipment that didn’t have an immediate production or safety benefit was considered lower priority for maintenance.
- Preventive maintenance was reduced on items that had a low failure rate, as well as those that had minimal adverse consequences when they did fail.
- Operating costs (OPEX) needed to be lowered.
- The Personnel on Board (POB) needed to be increased to meet the oil refinery maintenance burden.
The result: Improved oil and gas industry operations
After the analysis and implementation of new strategies, the results represented a significant improvement.
- A 65% cost savings on annual maintenance.
- A reduction of 7,127 man-hours over the course of a year.
- A plan was put in place for oil and gas refinery maintenance moving forward.
- Unnecessary safety risks have been removed and no related injuries have been reported.
- The backlog was successfully cleared and the new system will prevent future issues.
Optimizing maintenance for your facility
Oil and gas refinery maintenance is a significant cost for an operator.
There are adverse consequences for inefficient upkeep practices, including profitability and personnel safety.
An optimized maintenance program is crucial for ensuring an oil refinery can thrive through its expected 30-year-lifespan – and possibly beyond.
Preparing for emergencies
The efficiency of the oil and gas industry has a direct effect on your business and your bottom line.
When you need an emergency shipment to repair a pipeline or keep your refinery running, make sure you working with a freight shipping company that has a great reputation for complex logistics so you have peace of mind.
For access to the full white paper created by Lloyd’s Register, click here.