Oil and Gas Production
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