• NACE equips society to protect people, assets and
    the environment from the adverse effects of corrosion.

Oil & Gas Production

CORROSION IN THE OIL AND GAS INDUSTRY

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.

It is widely recognized within the oil and gas industry that effective management of corrosion will contribute towards achieving the following benefits:

  • Statutory or Corporate compliance with Safety, Health and Environmental policies
  • Reduction in leaks
  • Increased plant availability
  • Reduction in unplanned maintenance
  • Reduction in deferment costs 

 

 Oil and Gas “Rust”: An Evil Worse Than Depletion
May 2008 Offshore Technology Conference (OTC) Presentation
Matthew R. Simmons, Chairman Emeritus, Simmons & Company International