FoGB assignment
- 1. Assignment on Fundamentals of Oil and Gas Business Submitted by- Anubhav Talukdar Roll no :R020216010 MBA Oil and Gas CoMES, UPES, Dehradun
- 2. North Dakota Oil pipeline Regions connecting- North Dakota and Illinois, USA Approximate length- 1170 miles Project cost- $4 billion dollars Introduction: - The Dakota Access Pipeline Project is another rough 1,172-mile, 30-inch measurement pipeline that will interface the quickly extending Bakken and Three Forks generation regions in North Dakota to Patoka, Illinois. The pipeline will empower locally created light sweet unrefined petroleum from North Dakota to achieve real refining markets in a more straightforward, financially savvy, more secure and ecologically mindful way. The pipeline will likewise diminish the present utilization of rail and truck transportation to move Bakken unrefined petroleum to major U.S. markets to bolster residential interest. It will transport roughly 470,000 barrels for each day with a limit as high as 570,000 barrels for every day or more. Shippers will have the capacity to get to numerous business sectors, including Midwest and East Coast markets and the Gulf Coast by means of the Nederland, Texas raw petroleum terminal office of Sunoco Logistics Partners. Contingent on administrative endorsements, the pipeline is anticipated to be in administration by the final quarter of 2016. What is a Pipeline: Pipelines are used for following purposes in onshore and offshore operations- 1. Transportation of hydrocarbons 2. Providing Flow lines to transfer product from a platform to export lines 3. To provide Flow lines to transfer product between platforms, subsea manifolds and satellite wells. 4. Injection of water, gas or chemicals in secondary and tertiary recovery processes.
- 3. Pipeline design stages include the following three stages a. Conceptual engineering b. Pre-engineering c. Detailed engineering a. Conceptual engineering Here engineers try to establish technical feasibility and constraints on the system design and construction. Which includes the following - To eliminate non- viable options; - To identify the required information for the forthcoming design and construction; - To allow basic cost and scheduling exercises to be performed; - To identify interfaces with other systems planned or currently in existence. The estimation of the early designing work is that it uncovers potential troubles and zones where more exertion might be required in the information gathering and outline zones. b. Pre-engineering or preliminary engineering: -Basically done to determine the size of the pipeline. -Determining the thickness of the wall and the required grade for the pipeline -Verifying the pipeline against design and code requirements for installation and operation. The level of building is here and there indicated as being adequate to detail the outline for incorporation into a "Building, Procurement, Construction and Installation" (EPCI) delicate. The EPCItemporary worker ought to then have the capacity to play out the nitty gritty outline with the base number of varieties as point by point in their offer. c. Detail engineering In this stage, the point by point building stage is, as the depiction recommends, the improvement of the plan to a point where the specialized contribution for all acquirement and development offering can be characterized in adequate detail. This stage includes the following stages- -Course advancement;
- 4. -Choice of divider thickness and covering; -Affirm codenecessities on quality, Vortex-Induced Vibrations (VIV), on- base soundness, worldwide clasping and establishment; -Affirm the plan andor play out extra outline as characterized in the preparatory designing; -Advancement ofthe outline and drawings in adequate detail for the subsea scope. This may incorporate pipelines, tie-ins, intersections, traverse adjustments, risers, shore approaches, subsea structures; -Plan point by point arrangement sheets in view oflatest study information; -Planning of determinations, commonly covering materials, cost applications, development exercises (i.e. pipelay, study, welding, riser establishments, spoolpiece establishment, subsea tie-ins, subsea structure establishment) and charging (i.e. flooding, pigging, hydrotest, cleaning,drying); -Plan material take off (h4TO) and order essential demand data for the acquisition of materials; -Plan outline information and other data required for the confirmation powers.
- 5. Design Process: - The North Dakota pipeline Capital Expenditure of the project $ 3.8 billion. Geological area coveres four states of North- America. They are discussed below- North Dakota- Stanley, Ramberg site, Epping terminal,Trenton option site, Watford city terminal site, Johnson corner Terminal South Dakota-Campbell, McPherson, Edmunds, Faluk, Spink, Beadle, kingsbury, Miner, Lake, McCook, Minnehaha, Linchon. Iowa- Lyon, Sioux. O’ Brien, Cherokee, Buena Vista, Sac, Calhoun, Webster, Boone, Story, Polk, Jasper, Des Moines, Mahaska, Keokuk, Wapello, Jefferson, Van Buren, Lee, Requirement to transport product specific requirement of operator codes, standards and specifications requirement of the process selection of wall thickness selection of material grade selection of route Projection of flowline flowline stress analysis and material grading & coding
- 6. Illinois- Hancock, Adams, Schuyler, Brown, Pike, Scott, Morgan, Scott, Macoupin, Montgomery, Bond,Fayette. Overview of the pipeline: - The pipeline has been developed by Dakota Access LLC. The companyis a subsidiary ofEnergy Transfer Crudeoil company. The pipeline will connectNorth Dakota to the Illinois Terminals and will transport crude oil from Bakken, North Dakota. Key elements of the pipeline are- During the constructionphase, an estimated $ 156 million will be earned by sales and income taxes. The Investment of the project is $ 3.7 billion. The project is impacting local and natural labours of US by creating around 11,000 construction jobs. Out of which around 35% will become permanent jobs. The pipeline will carry half of the Bakken’s current daily crude oil production. The pipeline is likely to meet or exceed state and federal requirements of safety. At minimum, it will designed in accordance to 49th code of Federal Regulations part 195 The pipeline is expected to be operational by 2016. Introduction of the pipeline: The Dakota Access Pipeline Project is another underground unrefined petroleum pipeline intended to transport 470,000 barrels of raw petroleum every day (with a development potential up to 570,000 barrels for every day) from the Bakken/Three Forks arrangements in North Dakota to an end close Patoka, Illinois. The venture will require the development of around 1,172 miles of 12-creep to 30-crawl distance across pipeline through the conditions ofNorth Dakota, SouthDakota, Iowa and Illinois ending close Patoka, Illinois. The venture is upheld by long haul restricting authoritative responsibilities from shippers and expects that the new pipeline and its related offices will be prepared for administration in late 2016, pending administrative endorsements. Why is the pipeline required: The motivation behind the Dakota Access Project is to securely transport U.S. unrefined petroleum from the Bakken/Three Forks arrangements in North Dakota to an end close Patoka, Illinois to bolster U.S. customers' vitality needs. The U.S. still imports half of the oil it devours every day and DAPL will give a basic connection to close the crevice between what we create as a nation and what we expend as we work to be genuinely free of vitality from precarious districts of the world. Each barrel of unrefined
- 7. petroleum created in the United States straightforwardly dislodges a barrel of imported outside oil. What's more, the Dakota Access Pipeline will lessen the measure of raw petroleum delivered by truck and by rail and increment the sum transported by pipeline. Since pipelines are measurably the most secure and most solid method of transporting rough, DAPL will enhance wellbeing to people in general and environment and free up rail limit for the transportation of products and different wares as of now obliged by unrefined petroleum loads. Pipelines assume an indispensable part in our day by day lives and give a basic connection between the wellsprings of vitality underway fields and end-clients or customers. Without pipelines, most of the United States would not have entry to American oil and characteristic gas and would need to depend upon remote wellsprings of less solid, less accessible, and significantly more costly wellsprings of vitality to make items, controlour homes and organizations, go via air, land and ocean, and drive mechanical and fabricating ventures. The North Dakota Bakken has seen a critical increment in the creation of unrefined petroleum, from 309,000 barrels a day in 2010 to more than 1 million barrels for each day in 2014. This vitality will require dependable transportation systems to achieve U.S. markets, and pipelines are the most secure, most proficient strategy fortransporting oil, as per the U.S. Division ofTransportation. Uniquely composed, fastidiously developed and precisely kept up to meet or surpass state and government wellbeing guidelines, today there are more than 190,000 raw petroleum pipelines working in the United States. Pipelines are planned and kept up to last several years and withstand outrageous climate situations. Dakota Access/ DALP: Dakota Access, LLC (ordinarily alluded to as "DAPL" or "Dakota Access") is an organization of Energy Transfer Partners shaped to securely and dependably transport American raw petroleum from the Bakken/Three Forks arrangements in North Dakota to business sectors and refineries situated in the Midwest, East Coastand Gulf Coastlocales ofthe United States. Its will likely ease transportation strains on rail for rough transportation and securely transport U.S. unrefined petroleum to U.S. markets by means of pipeline to facilitate the objective of vitality autonomy. Vitality Transfer, and its joined offshoots, is the biggest pipeline organization in the U.S. by yearly volume transported and the second biggest U.S. pipeline organization measured by foundation. Vitality Transfer and its different pipelines have given transportation administrations since the mid 1900s through a broad system of underground pipelines. Vitality Transfer's raw petroleum pipeline business comprises of around 5,400 miles of pipelines. We have planned,
- 8. constructed, and securely worked pipelines all through the United States. Our workers guarantee our pipelines work securely, proficiently, and dependably year round and in consistence with all Federal, state, and neighborhood laws and directions. The project timeline:- 3rd Quarter 2014 Initial Meetings of the company with State Permitting Agencies 3rd & 4th Quarter 2014 Project Open Houses/Informational Meetings 4th Quarter & 1st Quarter 2015 State Applications Filed 3rd Quarter 2015 State Authorizations Anticipated 4th Quarter 2015/ 1st Quarter 2016 Construction Commences 4th Quarter 2016 Facilities In-Services. Data according to the Region: 1. North Dakota • State Project cost - $1.4 billion • Amount that will be spent in state - $656 million • Estimated affect on generation and deals - $1.05 billion • Right-of-route installments to landowners – roughly $57 m •Labor wage (with half beginning from venture locale) – approx. $450 million •State utilize, net receipts and cabin charges amid development – approx. $32.9 million •Local utilize, net receipts and cabin charges amid development – approx. $1.7 million •Increase in state singular wage assess income – approx. $5.9 million •State property impose on a yearly premise year-over-year – approx. $13 million 2. South Dakota: a.State Project cost - $820 million b.Amount that will be spent in state - $486 million c.Estimated effect on generation and deals - $838 million d.Right-of-path installments to landowners – around $47 million e.Labor wage (with half starting from venture district) – approx. $303 million
- 9. f.State utilize, net receipts and cabin charges amid development – approx. $35.6 million g.Local utilize, net receipts and hotel charges amid development – approx. $2.9 million h.State property charge on a yearly premise year-over-year – approx. $13 million 3. Iowa: State Project cost - $1.04 billion Sum that will be spent in state - $628 million a. Evaluated affect on generation and deals - $1.09 billion b. Right-of-path installments to landowners – around $60 million c. Work salary (with half starting from venture district) – approx. $390 million d. State utilize, net receipts and cabin charges amid development – approx. $33.1 million e. Neighborhood utilize, net receipts and hotel charges amid development – approx. $2.2 million f. Increment in state singular wage impose income – approx. $7.7 million g. State propertyassess ona yearly premise year-over-year – approx. $14.6 million 4. Illinois: a.State Project cost - $516 million b. Sum that will be spent in state - $367 million c. Assessed affect on generation and deals - $734 million d. Right-of-route installments to landowners – roughly $31 million
- 10. e. Work wage (with half beginning from venture area) – approx. $303 million f. State utilize, net receipts and cabin charges amid development – approx. $16.4 million g. Nearby utilize, net receipts and hotel charges amid development – approx. $3 million h. Increment in state singular wage assess income – approx. $7.7 million I.State propertyimposeona yearly premise year-over-year – approx. $750,000. Safety of the pipeline: - Statement: Vitality Transfer has long standing duties to the wellbeing of individuals, nature, and our property and resources. We do this since it bodes well, yet more vitally, it is the best thing to do. These responsibilities are held as crucial centre values and are an indispensable piece of us as an organization and a corporate native. Our wellbeing duty stretches out to our workers, the overall population, and our temporary workers. Regarding wellbeing execution, we will likely be among the "mostelite" in our companion aggregate. To accomplish this operational incredibleness, Energy Transfer attempts to employ and keep up the mostqualified and committed workforce in the business and to make security and wellbeing responsibility a portion of our everyday operations. The initial step of the wellbeing responsibility program is the improvement of security gauges and desires. Once built up, these guidelines and desires are then plainly conveyed to all workers and temporary workers, who are held to these measures with the desire that every individual ought to feel the commitment to make wellbeing the most elevated need. For as long as five years, we have reliably achieved our security objective by having a representative OSHA recordable wellbeing record that set us in the top quartile of expansive midstream organizations. While we take incredible pride in our accomplishments, we are not fulfilled. Vitality Transfer has a dream with a true objective of a working environment that accomplishes a damage and occurrence free day consistently. Environment Safety statement: Vitality Transfer is focused on open security and the assurance of the earth. Vitality Transfer and its subsidiaries are focused onworking our offices in consistencewith all material government, state, and nearby ecological laws, controls, and benchmarks. Besides, our
- 11. Environmental Policy Manual effectively actualizes arrangements, systems and practices to accomplish our objective of full consistence. Our administration group is in charge of guaranteeing that the Environmental Policy Manual is a vital piece of our corporate culture keeping in mind the end goal to better serve the workers, clients, and constrained accomplices of Energy Transfer. We consistently look for approaches to improve our operations in the zones of ecological and asset security and preservation. How will the Dakota pipeline will maximise safety: - At Energy Transfer and with the Dakota Access pipeline, wellbeing is company’s top need. Comapany will likely give sheltered and dependable transportation of raw petroleum in the groups we cross and to the clients they serve. DAPL Pipeline actualizes all state and elected guidelines into the plan and operations of the pipeline and in numerous examples they surpass government wellbeing gauges to guarantee a long haul, sheltered and solid pipeline. A portion of the wellbeing measures we are fusing into DAPL incorporate. The company states that- a. They outline, build, work, and keep up the pipeline to meet or surpass Federal and security necessities, and utilize gear and materials that meet or surpass industry norms. b. They investigate each weld that joins every area of pipe both outwardly and with x-beams. c. They introduce weight and temperature sensors along the pipeline at mainline valves, pump stations, and meter stations to give triggers to close off the stream of raw petroleum through pipe areas in crises. These actuators can be activated close to the distinguishing proofof an issue and the valve can be closed close to setting off the flag. d. They investigate and hydrotest as per administrative prerequisites and in addition distributed industry measures before putting the pipeline in administration. e. They utilize both a neighbourhood and remote controlled crisis shutdown framework to instantly and securely shutdown pump stations and the pipeline. f. They introduce uncommon control gadgets to keep pipeline weight from surpassing safe points of confinement. all day, every day checking of pipeline stream weights by a brought together Pipeline Control Centre. Pipeline can be closed around a Control administrator, or send nearby field staff to physically close down the pipeline.
- 12. g. They perform routine ground and flying hole assessments of the pipeline at least 26 times each year. Vitality Transfer commonly flies the pipeline at regular intervals, climate allowing. h. They test and align controls and security gear on a normal premise. i. They teach people in general and direct harm avoidance programs consistently. We lead and hostcrisis reaction drills with our workers and neighbourhood crisis responders situated along the pipeline course. j. They facilitate with nearby crisis responders and prepare neighbourhood dominant voices in averting and reacting to any pipeline related issues. k. They present signs on demonstrate the area of the pipeline and a telephone number to call before burrowing. l. They bolster state-wide underground utility harm aversion programs. The Dakota Access Pipeline will use the 811 One-Call System. Socio-cultural impact of the pipeline: The Sioux tribe is opposingthe entire project since the very beginning who are also the native of North Dakota. The tribe's fundamental contention is that controllers at the Army Corps of Engineers didn't allow it enough of to evaluate the pipeline's effect on social locales and the conceivable impacts of a spill along the line. The tribe is looking for a directive hindering extra development until it can make those evaluations. According to Jan Hasselman, who is representing the tribe, the law doesn't give the tribes veto control over anything, it gives them the privilege to have an exchange around their social legacy Past lawful issues, however, the tribe has raised social complaints to the pipeline, calling it the most recent slight from organizations and governments looking to benefit off of regular assets on or close tribal terrains. In that sense, Hasselman and tribal partners said, the Standing RockSioux are prepared to wage a more careful challenge the venture and transform it into a social equity issue. According to Standing Rock Sioux Chairman David Archambault II-
- 13. Whether it's gold from the Black Hills or hydropower from the Missouri River or oil pipelines that undermine our familial legacy, the tribes have constantly paid the cost for America's success, We are additionally a flexible people who have survived unspeakable hardships before, so we recognize what is in question now.