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How the Shale Revolution is Impacting American Manufacturers
When a new economical source of natural gas was created by pairing horizontal shale drilling with refined hydraulic fracturing techniques, or slick-water fracturing (known as “fracking”), the shale revolution began.
With approximately 70% of chemical products’ final production costs going toward raw materials, such as ethylene or propylene, the petrochemical industry faces very tight margins and is significantly impacted by raw material and shipping costs.
Providing manufacturers with an unprecedented amount of low-cost natural gas, the shale revolution repositioned the United States’ role in the worldwide chemical marketplace and opened up many new manufacturing opportunities.
RELATED: How the Shale Revolution is Impacting Manufacturing in America
The Rise of Chemical Processing Plants in America
Currently, the United States is one of only three countries capable of extruding natural gas from shale rocks on a commercial scale and has become a world leader in the chemical processing and export markets.
In 2000, natural gas provided by shale accounted for just 1% of all U.S. natural gas production; by 2010, it accounted for over 20%. And the shale revolution doesn’t appear to be slowing down anytime soon. The Energy Information Administration predicts shale gas will make up 46% of America’s gas production by 2035. BP’s Energy Outlook report is even more optimistic, forecasting that “shale gas will account for three-quarters of total U.S. gas production in 2035, almost 20% of global output.”
Thanks to this rapid market growth, there’s been a surge in investments in ethane-consuming petrochemical plants and export facilities since 2012, according to the U.S. Energy Information Administration (EIA). Dow Chemical, for instance, has made a $6-billion investment to expand its Gulf Coast facilities and construct a new cracker facility.
Which States Have Experienced the Surge in Chemical Processors?
At DFT® Inc., we’ve had the chance to be a part of various developing chemical processor plant projects. Our team is often called upon to help petrochemical processors with check-valve solutions to prevent leaks, control turbulence, prevent reverse flow of liquids, protect valuable equipment, and provide tight shutoff. In particular, we’ve seen significant growth in chemical processing plants in the following states:
- Texas: Still the leader in both oil and gas production, Texas is expecting to see more than 100 petrochemical projects completed over the next decade. And with the newly discovered Wolfcamp shale deposit, which is believed to contain three times more natural gas and petroleum than the Bakken Formation, Texas is sure to see increasing investments for years to come.
- North Dakota: In North Dakota, the Bakken Formation and Williston Basin have transformed the state’s economy, and North Dakota is now the second leading shale gas producer in the country. This, in turn, has led to several major investments; several new fertilizer plants, for instance, have been constructed.
- Oklahoma: Centrally located at the intersection of many of the nation’s pipelines, Oklahoma has also seen a major boom in petrochemical plant investments over the last several years. In fact, “oil and gas activity accounts for more than half the fixed investment ($20.3 billion) in Oklahoma,” according to a report by the State Chamber of Oklahoma Research Foundation.
- Pennsylvania: Extending from Upstate New York through Pennsylvania, West Virginia, and parts of Ohio, the Marcellus Shale is proving to be a huge source of revenue for Pennsylvania, with many new facilities being built and the Sunoco Logistics Partners’ Marcus Hook Terminal serving as a major ethane export hub. Just in the past few weeks, in fact, Shell Chemicals invested in a $6-billion ethane cracker plant in Western Pennsylvania.
- Ohio: Located in Ohio, the Utica shale play is positioned to be one of the next major natural oil and gas reservoirs. The most oil-rich area, known as the Point Pleasant formation, is located in Eastern Ohio. Many experts compare it to the lucrative Eagle Ford Shale, which created thousands of jobs, generated $2.9 billion in total economic output, and created over $47 million in local government revenues. And because Utica underlies Marcellus, many resources and necessary infrastructure are already in place.
- West Virginia: The Utica and Marcellus shale boom has also helped West Virginia; from 2002 to 2014, annual natural gas production grew from less than 100 billion cubic feet to more than 1 trillion cubic feet, with new plants emerging regularly. The Rogersville Shale, also, located in Southern West Virginia, has so far produced modest results but could very well provide significant profits over time.
How Ethylene is Affecting the Manufacturing Industry
Ethylene — a colorless, odorless gas created by “cracking” ethane from natural gas liquids (NGLs) — is an extremely versatile substance, used in everything from plastics to pharmaceuticals. As a major raw-material building block, ethylene is one of the most important chemicals in American manufacturing.
Less than a decade ago, the United States was shipping much of its bulk chemicals, like ethylene, overseas. Now, thanks to new innovative manufacturing trends and the abundance of low-cost natural gas, petrochemical manufacturers across the country are greatly expanding their cracking capacities.
In fact, according to the American Chemistry Council, U.S. chemical companies have announced investment projects totaling over $145 billion. In addition to crackers, these investments are going toward other facilities, such as plants in which various chemicals and plastics are made for export. The United States’ increased ethane production has also led to increased ethane export.
This resurgence is bolstering the U.S. manufacturing sector at large, as plant capacities increase and more and more skilled manufacturing jobs become available.
Keeping Up with Industry Trends
At DFT®, we understand the importance of keeping our clients up to date on innovative chemical processing trends. To assist our chemical processor partners, we’ve created a comprehensive eBook, “The Rise of Chemical Processing in America: How the Shale Revolution Will Impact the Consumer Goods Market.”
DFT® Inc. is proud to support fellow U.S.-based manufacturers contributing to the shale revolution in America. With such a large quantity of NGLs produced each day, check valves are an integral part of processing. The team at DFT® will happily work alongside your planners and maintenance team to provide education on the different valve technologies available for your facility. As one of our recent customers said, “DFT® provided the best check valve that I forgot I have.”
Using DFT Check Valve to Solve High Flow Lockout in Combustion Turbine
There was a case study done at a power company regarding the installation of the check valve developed by DFT Inc. near the combustion turbine. The GLC Check Valve developed by DFT is connected on Low NOx Dual Fuel Turbines. The combustion turbines can run using diesel fuel or natural gas. When the turbine is fuelled by diesel, water is injected into the diesel in order to increase its power and lower the emission.
A 3” 600# water injection line goes into the turbine. At the turbine, the line is further split into 20 – ¾” lines that are spread out equally around the turbine.
Natural Gas Dilemma
The turbines, as mentioned earlier, can also run using natural gas. However using natural gas requires that the power company must ask for permission from a local gas company in order to fuel the turbines. The problem when using natural gas is that the turbines consume so much that gas companies would need to run their compressor station at max capacity. Failure to do so might affect their downstream customers. When this scenario happens, the turbine combustion is forced to rely on diesel fuels.
High Flow Lockout
Another problem that might occur is the High Flow Lockout. This happens when one of the 20 – ¾” check valves malfunctions, allowing air to go to the isolation valve, which in turn, causes the turbine to fail.
It is hard to pinpoint which of the 20 smaller valves have malfunctioned, requiring the operator to inspect each of the 20 valves individually.
The power company wants to remote start the turbine within 15 minutes of its cold start state. In this case, the only way for it to start quickly, is to utilize diesel fuel.
Solution with DFT Check Valves
The solution to all these problems is the installation of the DFT check valves. The 3” 600# 316SS GLC with soft, seat, sizing and a special spring, was installed on the water injection line near the turbine.
By doing so, the possibility of air backing up in the isolation valve is eliminated. The turbines can now work efficiently, whether using natural gas or diesel fuel.
The installation of the DFT check valves has been in the system for 6 years now, and no failure in the turbine has occurred. Word of the successful solution has spread to other plants resulting in the installation of DFT silent check valves.
DFT Model PDC® Solves Air Compressor Problems
Inside their control valve test and research facility, a major valve manufacturer was using two reciprocating air compressors that were designed to run until the stored air pressure in the extremely large volume tanks reached a set point.
They would then shut off for anywhere from several minutes to several hours, depending on demand. During the shut-off intervals, the wafer-style swing check valves on the discharge side were leaking, tripping the relief valves and threatening to over pressurize system components.
The Use of DFT Technology
On several occasions, the continual pounding of the valve seats resulted in total failure, which caused the system to blow the intermediate stage safety relief valve and totally shut down.
Despite being a valve manufacturer themselves, they recognized that our insight into check valve technology would help them find the best way to address shut-off performance and longevity. Our solution was to replace the valves in both the 200 hp/1000 psig and 400 hp/400 psig air compressors with DFT model PDC® check valves.
Preventing System Pressure from Bleeding Back
Designed specifically for reciprocating equipment, these silent, non-slam check valves prevented system pressures from bleeding back into the compressor when the machines were off as well eliminated the unacceptable reverse flow leakage. The machines now run in optimal states and are no longer susceptible to shut down.
If you are interested in learning more about this project, or if you have a situation that would benefit from our insight into valve technologies, contact us today.
Consequences of and Solutions to Water Hammer
Water hammer is a phenomenon that can be either a mild nuisance or a severe problem. It is usually considered a safety hazard. The extreme pressure caused by water hammer can blow out gaskets and cause pipes to suddenly rupture, causing serious injury to anyone nearby.
Identifying Water Hammer
Usually, you can identify water hammer by a loud banging or hammering sound coming from pipes, especially after quickly shutting off a water source. This sound is caused by the pressure shockwave hitting some kind of blockage like a closed valve or joint at a high force. The noise can sometimes be deafening, and can sometimes become a major source of stress, especially for any nearby workers.
Damage Caused by Water Hammer
Recurring cases of water hammer, however, are more than just an annoyance. Water hammer can cause serious damage to pipelines, pipe joins gaskets, and all other components of the system like flow meters and pressure gauges. On contact, these pressure spikes can easily exceed five to ten times the working pressure of the system, placing a tremendous amount of stress on the system.
Water hammer can also cause leaks at the joints in the system, crack pipe walls and deform piping support systems. It can be quite expensive to repair or replace damaged pipeline components and equipment. Worse, the cost can grow exponentially if the spill results in an environmental issue.
Solutions to Water Hammer
Water hammer can be prevented or reduced in a number of ways, depending on its cause. Educating and training operators is one of the simplest ways to minimize water hammer caused by hydraulic shock. Training allows operators to learn the importance of properly opening and closing manual or actuated valves, and can take care to minimize the effects of water hammer. Operators can also be more careful in safely opening and closing quarter turn valves like ball valves, butterfly valves, and plug valves.
Another option of reducing the pressure spikes caused by water hammer are water hammer arrestors. Water hammer resistors are components of the piping system that reduce the noise and stress to pipeline systems by absorbing the shock. Just make sure to size and install them properly, otherwise they will not be as effective.
Valves Can Reduce Water Hammer
You can also install check valves in vertical pipe lines. These include swing checks, tilting discs, and double door check valves, all of which can be made to operate in a vertical line. Keep in mind that these will not prevent reversing flow in this orientation, in which case a Silent Check Valve is the best option.
Sometimes the sudden closure of swing check, tilting disc and double door check valves can cause hydraulic shock. You can prevent this by changing these valves with silent of non-slam check valves, such as the kind manufactured by DFT. Rather than reversing flow, silent check valves close when the differential pressure across the closure member of the valve decreases.
Water hammer can be caused when valves slam shut; silent check valves are far less likely to cause this to happen. The valve fully closes when the differential pressure across the disc approaches the cracking pressure of the valve. The fluid then decelerates and decreases momentum before the valve is fully shut. This also ensures that the fluid does not reverse direction.
The Growing Success—and Increasing Needs—of American Oil and Gas
By now it should come as no surprise that American manufacturing is back, and all signs point to full speed ahead. There are many reasons for this, and one of them is our country’s natural gas boom—an abundance of production and supply that’s helping to make manufacturing here more cost effective and competitive.
In fact, the Energy Information Administration recently reported that “soaring shale production” resulted in 2013 seeing the fastest growth rate ever for oil production.* Articles such as this one confirm this, pointing out that America should be completely self sufficient in oil production by 2037—meaning zero imports and enough domestic production to support the entire country’s energy needs.
