Integrity inspection planning updated with cost of risk

2017 ◽  
Vol 57 (2) ◽  
pp. 647
Author(s):  
Yury Sokolov
Keyword(s):  
Oil And Gas ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Individual Risk ◽  
Plant Management ◽  
Inspection Planning ◽  
Worst Case ◽  
Integrity Management ◽  
Inspection Data ◽  
New Generation

The industry expenditure savings motive requires a cost/benefit analysis to optimise Integrity Management budgets. The challenge of estimating precise risk costs requires that numeric Probabilities of Failure (PoF) be known at the highest possible level of confidence, as equipment items specific PoFs govern the actual probability of financial losses and safety implications. The first-hand information on the equipment actual integrity condition is contained in numeric results of integrity inspections. In practice, these results are seldom analysed statistically, being collapsed into single ‘worst case’ values. This simplification prevents assessing of equipment specific actual PoFs and from quantifying failure risks when using traditional methods. We developed a new-generation inspection planning and assessment strategy applied to oil and gas pressure equipment. Evaluating equipment PoFs enables assessing risk costs and optimising the budgets, as well as setting justified internal inspection coverage and frequency objectives. This is achieved by a statistical analysis of numeric inspection data. Existing inspection data (such as ultrasonic testing spot-checks) can be used for a first-pass analysis. Statistical plotting of such data automatically visualises the data quality, and the relevant recommendations for improving inspection coverage or tools are drawn where necessary. We found that two criteria drive integrity decision making: failure total costs and annual fatality expectancies. These criteria are mutually complementary. Both need to be considered for a safe and profitable plant operation. Equipment individual risk control strategy is then developed from safety compliance and budget savings maximising standpoints, thereby also enabling confident design and procurement decisions. This is a new-generation strategy suitable for bringing together all branches of plant management and for improving confidence of the parties. We see it as an evolutionary update to Risk Based Inspection and Maintenance practice, which is now in high demand due to cost pressures.

Maintaining Technical Integrity of Petroleum Flowlines on Offshore Installations: A Decision Support System for Inspection Planning

2010 ◽  
Author(s):  
R. M. Chandima Ratnayake ◽  
Tore Markeset
Keyword(s):  
Ad Hoc ◽  
Oil And Gas ◽  
Formal Model ◽  
Technical Condition ◽  
Inspection Planning ◽  
Analytic Hierarchy ◽  
Plant Strategy ◽  
The North ◽  
Critical Components ◽  
Inspection Data

Oil and Gas (O&G) platforms in the North Sea are facing aging problems as many of the installations have matured and are approaching their design lifetime. Flowlines are used to transport oil and gas well stream from the wellhead to the production manifold. They are categorised as one of the most critical components on a production facility. Flowline degradation takes place due to corrosion and erosion. The deterioration of a flowline may increase the risk of leakages, ruptures, etc., which shall lead to serious HSE (health, safety and environmental) and financial consequences. Any such risks have a direct impact on the O&G installation’s technical integrity as well as the operator’s sustainability concerns. Conventionally, pipelines are designed with safety provisions to provide a theoretical minimum failure rate over the life span. Furthermore, to reduce the risk of failure various techniques are routinely used to monitor the status of pipelines during the operation phase. The existing methods of flowline health monitoring planning requires one to take into consideration the operator’s plant strategy, flowline degradation mechanisms, historical data, etc. A technical condition report is made based on findings’ reports and degradation trends. This report recommends the inspection of a number of points on the flowlines in a certain year using non-destructive evaluation methods such as visual inspection, ultrasonic testing, radiographic testing, etc. Based on the technical condition report, in general for a certain preventive maintenance shutdown, 10 to 15 flowline inspection openings are accommodated as finance, time and resource availability are taken into consideration. However, it is customary to plan to open more locations in a certain inspection package than can be inspected and minimization of such points is at present done on an ad hoc basis. This paper suggests a formal model and a framework to formally minimize the number of visual inspections by executing the plant strategy as well as HSE concerns. The model is derived using analytic hierarchy process (AHP) framework, which is a multi-criteria decision-making approach. The model is developed based on literature, industrial practice, experience as well as real inspection data from a mature offshore O&G installation located on the Norwegian Continental Shelf.

scholarly journals Cost–benefit model for multi-generational high-technology products to compare sequential innovation strategy with quality strategy

PLoS ONE ◽  
2021 ◽  
Vol 16 (4) ◽  
pp. e0249124
Author(s):  
Hyoung Jun Kim ◽  
Su Jung Jee ◽  
So Young Sohn
Keyword(s):  
Resource Constraints ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Strategic Decision ◽  
Innovation Strategy ◽  
High Tech ◽  
Sequential Innovation ◽  
Technology Products ◽  
Innovative Products ◽  
New Generation

In the rapidly changing high-tech industry, firms that produce multi-generational products struggle to consistently introduce new products that are superior in innovativeness. However, developing innovative products in a short time sequence period is likely to cause quality problems. Therefore, considering time and resource constraints, two kinds of strategies are commonly employed: sequential innovation strategy, sequentially introducing a new generation of technology product at every launch interval, ensuring timely innovativeness but with relatively uncertain quality, or quality strategy, intermittently introducing a new generation of products, together with a derivative model between generations to enhance the quality. In this study, we propose a framework for a cost–benefit analysis that compares these two strategies by considering competition between firms within a generation as well as that within a firm across multiple generations (i.e., cannibalization) throughout the launch cycle of high-tech products. We apply our proposed framework to the smartphone market and conduct a sensitivity analysis. The results are expected to contribute to strategic decision-making related to the introduction of multi-generational technology products.

Inline Inspection of Dents and Corrosion Using “High Quality” Multi-Purpose Smart-Pig Inspection Data

2006 ◽  
Author(s):  
Steffen Paeper ◽  
Bryce Brown ◽  
Thomas Beuker
Keyword(s):  
New Technology ◽  
Operational Performance ◽  
Sensor Technology ◽  
High Quality ◽  
Operational Conditions ◽  
The Us ◽  
Integrity Management ◽  
Inspection Tasks ◽  
Inspection Data ◽  
New Generation

A new generation of geometry sensor for ILI tools has been developed. This sensor provides highly accurate geometry data of the internal pipe contour. The technology uses the benefits of a touchless distance measurement in combination with the advantages of a mechanical caliper arm. The complementary interaction allow the measurement of accurate data under demanding operational conditions. The geometry sensor technology can be combined with a navigation unit and the high resolution MFL inspection technology on so called multi-purpose ILI-tools. The merging of different inspection tasks on a single tool is an economic solution to create and add to an ILI-database for integrity management. Field experience with this new technology will be discussed, based on more than 500 miles inspected pipeline. Most inspections were performed in the US and Canada. The operational performance of the sensors justified the new design.

Quantifying Risk to Optimize Facility Integrity Management

2020 ◽  
Author(s):  
Alex Nemeth ◽  
Lily Li ◽  
Andrew Nielsen ◽  
Geoff Vignal
Keyword(s):  
Decision Making ◽  
Cost Benefit Analysis ◽  
Risk Mitigation ◽  
Cost Benefit ◽  
Storage Condition ◽  
Pipe System ◽  
Relative Ranking ◽  
Integrity Management ◽  
Dollar Amount ◽  
The Right

Abstract Effective asset integrity management is supported through the understanding of the condition of the asset, and the quantification of the safety and uncertainty of its properties. Risk based and risk informed decision making can help operators prioritize inspections and repairs on mainline pipe, as well as within operator facilities. Setting operator system specific targets for reliability and risk can help operators better understand the condition of their system, and provide one means of determining whether integrity action or other risk treatment is required on a specific asset, either on the mainline pipe system or on a facility asset system. While mainline pipe condition is better understood through the use of inline inspection technology and non-destructive examination in the field, facility piping and storage condition is more difficult to understand due to the complexity and number of segments of assets within an operator’s facility, as well as the unpiggable nature of the majority of facility piping. To help resolve this issue, a risk quantification can be done for each segmented asset within a facility. A relative ranking of asset risks can help prioritize facility integrity activities and drive the planning and execution optimization. However, simply looking at a relative ranking of asset risks may not be enough to maximize risk reduction and achieve safety and reliability targets. This paper looks to expand on the implementation of Risk Based Inspection (RBI) standard in API 581 and explore more broadly how facility asset risk results can be used in integrity planning and decision making. The paper also examines the application of using finance principals to better quantify risk and carry out a meaningful cost benefit analysis to optimize integrity programs. Interpreting a quantified risk dollar amount is an industry challenge, and shedding light onto the value of applying reliability and risk models beyond the safety of an operator’s system can be extremely beneficial for operators to enhance cost efficiency. The quantification of risk helps support the optimization of spend and resource allocation to bring efficiencies into integrity management systems while maintaining focus on the right risk mitigation across an operator’s system.

Risk Based Inspection Planning for Deteriorating Pressure Vessels

2016 ◽  
Author(s):  
Shane Haladuick ◽  
Markus R. Dann
Keyword(s):  
Decision Analysis ◽  
Decision Maker ◽  
Pressure Vessel ◽  
Oil And Gas ◽  
Pressure Vessels ◽  
Inspection Planning ◽  
Course Of Action ◽  
Inspection Data ◽  
The Cost ◽  
Aid Decision

Pressure vessels are subject to deterioration processes, such as corrosion and fatigue. If left unchecked these deterioration processes can lead to failure; therefore, inspections and repairs are performed to mitigate this risk. Oil and gas facilities often have regular scheduled shutdown periods during which many components, including the pressure vessels, are disassembled, inspected, and repaired or replaced if necessary. The objective of this paper is to perform a decision analysis to determine the best course of action for an operator to follow after a pressure vessel is inspected during a shutdown period. If the pressure vessel is inspected and an unexpectedly deep corrosion defect is detected an operator has two options: schedule a repair for the next shutdown period, or perform an immediate unscheduled repair. A scheduled repair is the preferred option as it gives the decision maker lead time to accommodate the added labour and budgetary requirements. This preference is accounted for by a higher cost of immediate unscheduled repairs relative to the cost of a scheduled repair at the next shutdown. Depending on the severity of deterioration either option could present the optimal course of action. In this framework the decision that leads to the minimum expected cost is selected. A stochastic gamma process was used to model the future deterioration growth using the historical inspection data, considering the measurement error and uncertain initial wall thickness, to determine the probability of pressure vessel failure. The decision analysis framework can be used to aid decision makers in deciding when a repair or replacement action should be performed. This method can be used in real time decision making to inform the decision maker immediately post inspection. A numerical example of a corroding pressure vessel illustrates the method.

scholarly journals Evaluating the Impact of the Registered Provisional Immigrant Program: A Cost-Benefit Analysis

2016 ◽  
Vol 23 ◽  
pp. 20
Author(s):  
Odia Bintou Cissé
Keyword(s):  
Undocumented Immigrants ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
The United States ◽  
Base Case ◽  
Benefit Analysis ◽  
Case Scenario ◽  
Base Case Scenario ◽  
Worst Case ◽  
The Impact

On June 27, 2013, the Senate passed the Border Security, Economic Opportunity, and Immigration Modernization Act of 2013 (referred to as S.744). The bill addresses key elements of the immigration process through five sections. This analysis serves as an ex-ante Cost-Benefit Analysis (CBA) of the proposed Registered Provisional Immigrant (RPI) program under Section II of S.744, which would allow undocumented immigrants in the US to obtain legal status. The CBA looks at a 10-year timeframe from 2015 through 2025 and estimates the costs and benefits to four groups: undocumented immigrants, US taxpayers, employers of undocumented immigrants, and the United States Citizenship and Immigration Services (USCIS) under a base case scenario, a distributional weight scenario, and a worst-case scenario. Given the positive net benefits observed under the three scenarios, significant evidence recommends the implementation of the RPI program.

scholarly journals A new blockchain system design to improve the supply chain of engineering, procurement and construction (EPC) companies – a case study in the oil and gas sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rashid Amiri Ara ◽  
Klara Paardenkooper ◽  
Ron van Duin
Keyword(s):  
Supply Chain ◽  
System Design ◽  
Oil And Gas ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Field Analysis ◽  
Content Type ◽  
Implementation Processes ◽  
External Expert

Purpose This paper aims to propose a new blockchain system design to improve engineering, procurement and construction (EPC) companies’ supply chain for constructing oil and gas infrastructure, by mitigating cost and time inefficiencies. Design/methodology/approach A case study analyses the supply chain of a sample EPC company. First, a literature review is conducted to explore the subject in academic literature. Second, information flows are mapped using responsible, accountable, consulted and informed analysis and cross-functional process mapping. Third, inefficiencies are identified. Fourth, the root causes of the inefficiencies are pinpointed using fishbone and five-times-why analysis. Fifth, a comparison is made between the linear and the blockchain information system via force-field analysis. Sixth, a specific blockchain system design is identified based on three external expert interviews. Finally, the new system is designed and a cost-benefit analysis is conducted. Findings Major cost and time inefficiencies in oil and gas infrastructure developments are caused by a poor information flow in the supply chain. The new blockchain system design is a feasible solution, reducing cost inefficiencies by 12.4% and operation lead-times by 36.5%. Research limitations/implications The confidentiality of the sample EPC company’s information represents a limitation. Originality/value The research introduces a new blockchain system design, reducing cost and time inefficiencies in the project-development supply chain, including implementation processes.

Utilization of Piping Inspection Data for Continuous Improvement: A Methodology to Visualize Coverage and Finding Rates

2013 ◽  
Author(s):  
R. M. Chandima Ratnayake
Keyword(s):  
Ad Hoc ◽  
Oil And Gas ◽  
Thickness Measurement ◽  
Gas Production ◽  
Process Conditions ◽  
Inspection Planning ◽  
Oil And Gas Production ◽  
Product And Process ◽  
Inspection Data ◽  
The Right

Piping inspection in Oil and Gas (O&G) production and process facilities (P&PFs) is traditionally set up by dividing the overall piping components into corrosion loops (CLs) reflecting similar corrosion (i.e. corrosion due to chemical or electro-chemical reaction and/or erosion-corrosion) environment and process conditions. Each CL is comprised of a few or several wall thickness measurement locations (WTMLs). The WTMLs are typically identified for each WTML ‘feature’ (e.g. straight section of a spool, bend, tee, weld, end cap, etc.) in a CL. Generally, inspection planning decisions regarding WTMLs are prioritized based on the results of risk based inspection (RBI) analysis. However, the degradation behavior is continuously changing due to the change in product and process conditions during the maturity of O&G production wells. This manuscript illustrates a methodology to visualize inspection coverage and corresponding defect finding rates (DFRs) for different WTML features in a selected sub-system of an oil and gas production and process facility. The suggested methodology aids the visualization of DFRs pertaining to different WTMLs, enabling inspection planners to assign inspection recommendations to the right location at the right time, minimizing ad hoc work. The approach also enables feedback to be provided to the plant inspection strategy (PIS), depending on the corresponding production field and P&PF, whilst reducing the cost of inspection to the asset owner by the minimization of ad hoc inspection recommendations.

scholarly journals A victim-centred cost–benefit analysis of a stalking prevention programme

Crime Science ◽  
2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Lisa Tompson ◽  
Jyoti Belur ◽  
Kritika Jerath
Keyword(s):  
Justice System ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Detailed Data ◽  
Benefit Analysis ◽  
Worst Case ◽  
Assessment Scores ◽  
Institutional Costs ◽  
Intangible Costs

AbstractResearch suggests that stalking inflicts great psychological and financial costs on victims. Yet costs of victimisation are notoriously difficult to estimate and include as intangible costs in cost–benefit analysis. This study reports an innovative cost–benefit analysis that used focus groups with multi-agency teams to collect detailed data on operational resources used to manage stalking cases. This method is illustrated through the presentation of one case study. Best- and worst-case counterfactual scenarios were generated using the risk assessment scores and practitioner expertise. The findings suggest that intervening in high-risk stalking cases was cost-beneficial to the state in all the case studies we analysed (even if it incurs some institutional costs borne by the criminal justice system or health) and was often cost-beneficial to the victims too. We believe that this method might be useful in other fields where a victim- or client-centred approach is fundamental.

scholarly journals MODEL PEMBATASAN UKURAN PENANGKAPAN RAJUNGAN DALAM RANGKA PENINGKATAN EKONOMI NELAYAN SERTA KEBERLANJUTAN SUMBERDAYA

2019 ◽  
Vol 2 (1) ◽  
pp. 54-66
Author(s):  
Aceng Hidayat, Rizal Bahtiar
Keyword(s):  
Blue Crab ◽  
Cost Benefit Analysis ◽  
Economic Value ◽  
Processing System ◽  
Cost Benefit ◽  
Mesh Size ◽  
Plant Management ◽  
Small Crab ◽  
Processing Plants

Blue swimming crab (blue crab) is one of the fisheries resource commodities that have high economic value, so the opportunities for export to different countries is widely open.Optimization of management and utilization of blue crab is important for sustaining economic benefit.This research aims to (1) analyze bioeconomic resource of blue crab in the waters of Tangerang, Jakarta Bay, Bekasi and Karawang; (2) evaluate the utilization of blue crab resources processed by “mini plant” in Dadap Village Tangerang Regency; (3)feasibility study of blue crab resource utilization based on size. Research locationresource for management wasconducted in the waters of Tangerang, Bay of Jakarta, Bekasi, Karawang and the utilization of blue crab was done in Dadap Village, Tangerang Regency. The research method used is the case study method. Sampling method used was purposive sampling for fishermen, the census for mini plant, and random sampling for small crab processing system. Bioeconomic Gordon-Shaefer, analysis of productivity, and Cost Benefit Analysis (CBA) was used to analyze the data. Bioeconomic analysis results showed that the actual harvest is 1,152 tons/year, it has not exceeded the MEY level andeconomic overfishing has not occurred. Opportunity of increasing effort is possible and process of blue crab with size of above eight centimeters is more profitable and encourage a more stable stock of blue crab, processing of crab with optimum production, and increase efficiency of“mini plant”management  in the long run.Government policies in controlling mesh size of blue crab fishing gear  ≥ 8 cm should be strictly enforced, and processing plants do not accept and produce small crab <8 cm, in order to achieve sustainable blue crab resource management

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