David Penton – Dapenco Inc. Principal and Measurement Matters Inc. Director
Achieving regulatory compliance is a minimum step to prevent revenue losses and uncertainties in a corporate measurement process; likewise, it is important for producing companies to avoid costly measurement error with Quality Control and Quality Assurance. Technology choices and equipment selection do not provide ownership to minimize preventable uncertainties. It is important to identify error sources and avoid costly audit claims, capital development surprises and reporting rework with cost-effective, lasting solutions.
Accuracy
- Measurement accuracy is essential to avoid surprises with capital
spending outcomes. - Costly losses and uncertainties develop from preventable errors in
equipment selection, installation, EFM setup, meter file configuration,
operation, maintenance, calibration and reporting steps. - Accurate measurement and reporting data is needed for production
management decisions that impact profits and regulatory compliance. - Everyone in the measurement process should be prepared to decide on a
course of remedial action for similar or lower cost than the consequential
value of preventable errors.
Consequential Value
Good measurement and getting paid for oil and gas production are a given…or are they? Plenty of revenue risks occur in the many routine measurement and reporting steps between the wellhead and the bank where losses and uncertainties can develop in everyday activities. While a producing company may expect to increase production with a new facility, accuracy is essential to realize real incremental revenue. A revenue increase of 10% is not assured where measurement accuracy is +/- 10%.
A $10,000 fix would be a poor spending decision for a $1,000 problem.
Top Five Contributing Factors to Preventable Measurement Uncertainties
and Losses
Dollar values can be determined for resolving measurement error due to unacceptable meter resolution or flow computer setup and configuration errors. Likewise: data entries, data communication and data condition contribute to possible uncertainties and losses since the validity of production and sales volume data is impacted by whether it is current, on-time and complete.
Potential for upstream measurement uncertainties and losses can be assessed in routine tasks to identify where further clarification or remedial actions are required.
None of these top five contributions to preventable error can be alleviated without attention to Quality Control procedures and Quality Assurance practices:
- Field Data Capture uncertainties cause volume calculations from unreliable EFM, SCADA and trucking data.
- Orifice Meters: plates, liquid traps, installation errors and shared sensing
lines cause future audit issues and claims where Industry standards are
not followed. - Liquid Meter Error occurs with proving issues and installation deficiencies.
Sampling and Watercut Determinations account for significant potential
with costly errors that become apparent in data trends with sample
rejection criteria. - Audit Issues, Battery Proration Factors and Pipeline Metering Differences
are often attributed to data entry errors; yet data trending identifies error
sources as Production Accountants reveal entries they make to
government systems in monthly discussions with field operations people.
Preventable measurement and reporting uncertainties should be identified and addressed with cost-effective Fit-for-Purpose solutions. Long-term results occur when the cost for equipment, technology and compliance is justified by eliminating the cost of preventable uncertainties.