Thursday, August 8, 2013

from Robert Wenzel's Economic Policy Journal

No More Spills? New Technology Could Transform the Pipeline Sector

By James Stafford

The 2010 Kalamazoo spill and the 2013 Exxon leak in Arkansas are the most glaring incidents, but these are just the big leaks that are found right away and reported.

Most leaks are found eventually—but there is money to be saved and damage to be avoided by catching them at the smallest rupture. Right now, we rely on pigs in the pipeline to do this.

It's called "pigging". Pigs are inspection gauges that can perform various maintenance operations on a pipeline—from inspection to cleaning—without stopping the pipeline flow. The first "pigs" were used strictly for cleaning and they got their name from the squealing noise they emitted while travelling through the pipeline. The current generation of "smart pigs" can detect corrosion in the pipeline and are thus relied on for leak detection.

The Kalamazoo and Arkansas leaks were massive and caused by complete pipeline ruptures. These are rare incidents that account for less than 10% of leaks. But the small leaks--those that traditional pipeline detection systems don't catch—account for more than 90% of US pipeline leaks.

According to a recent report from the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration ( PHMSA) , the majority of leaks are smaller but can persist for months or even years, and those that are even reported are generally done so by people who have stumbled upon them by accident.

The fact remains that current systems and technologies only detect 50% of leaks. We need new solutions if we want to avoid another Arkansas, or another Kalamazoo.

The "pigs" are the darlings of the regulators, who force operators who have had any problems to "pig" their lines at a massive cost of over $1,000 per kilometer.

Certainly, today's smart pigs are well advanced beyond their ancestors—the balls of rags wrapped with barbwire, but they have their shortcomings.

Pigs can spot general corrosion and identify potential areas of concern, but they cannot detect pinholes in pipelines as their spatial resolution is poor and they can only see corrosion that is 1-2 inches in size. This is significant because a small leak of 10 barrels per day from a liquid pipeline operated at a standard pressure would come from a hole much smaller than this.

They are also only deployable over tens of kilometers, not the thousands needed.

Even if all the pipelines in the world were "pigged" every year, a pipeline operator would still not be able to ensure that small leaks are being detected.

For the larger pipes, the industry relies on SCADA. SCADA is a basic infrastructure monitoring system, where remote hubs relay data back to central monitoring point, using fiber-optic cable or other communications equipment. But it is not enough on its own.

A case in point is this: A SCADA system was working normally on the Pegasus pipeline in Arkansas at the time of the rupture and helped Exxon verify that an accident had occurred. Pegasus did not, however, have a Computational Pipeline Monitoring (CPM) program in place on the pipe. It wasn't enough. Indeed, in late 2012, PHMSA issued a 17-page warning to Exxon about its insufficient pipeline leak detection.

Then we have Keystone XL, which is always in the spotlight, most recently when TransCanada said it would opt out of new pipeline leak detection systems and stick with traditional methods that many believe are not good enough.

The 90%+ of leaks are small and more of a concern for the miles and miles of aging pipelines that crisscross the US, while new pipelines, like Keystone XL will benefit from new technologies during their construction, such as better pipe metallurgy and better welding. This will mean less chance of leaks, but not a zero chance. The fact is that the leak detection systems that will be used by new pipelines like Keystone XL (assuming it gets the green light), are not really any better than the current fare.

There is new technology floating around out there—but it's new and relatively untested in the marketplace.

RealSens remote-sensing pipeline detection technology aims to pick up where SCADA and the pigs leave off, detecting leaks over an entire pipeline network.

According to Banica, Synodon's CEO, realSens can actually save companies money by detecting the leaks sooner and faster and thus reducing the amount of spilled product and the environmental damage. But it's a new technology that was only introduced into the market 12 months ago.

Still, some of the big operators remain skeptical of new pipeline leak detection systems, as their cost-saving applications are as yet unproven.

"The first hurdle is that operators might not be aware that it exists and what the capabilities are. The second hurdle is that they have a hard time believing it works and have to see proof through customer field tests, which are currently ongoing," Banica told Oilprice.com.

But the issue of pipeline leak detection will increasingly be on everyone's radar following the Quebec train disaster that killed at least 38 people, and counting. No pipeline failure has ever come close to this level of human carnage. This will help shape the transport debate.

What the Quebec tragedy demonstrates, says Banica, is that pipelines are a far better option than rail. "Whereas pipelines do not kill as many people as rail (or even truck transport, as more drivers die due to accidents), they do pose a bigger environmental risk than rail due to larger potential leaks and releases."
 

The above originally appeared at OilPrice.com.

Tuesday, July 23, 2013

Restaurant Business, A Prelude to Economic Recovery?



Economic downturns are announced by restaurant business activity.  The more people eat out, the more extra income they have; the less they eat out, means they're tightening their belts. http://teapartyeconomist.com/wp-content/uploads/2013/07/Restaurants.gif

Thursday, June 27, 2013

Peter Schiff on Where Gold Is Going

Peter Schiff on Wednesday, June 26, 2013. 
 
 
Peter Schiff on Monday, June 21, 2013

 
A few guys were mentioned in this interview.  Their names are Bertram Seligman, Jim Sinclair's father, Jesse Livermore (and his 21 rules for trading), and Harry Schulz, who is still alive at 90.



Tuesday, June 11, 2013

Dollar Crashes, Stocks Skyrocket . . . While Metals Will Kickstart When Bonds Crash and Rates Skyrocket

Gregory Mannarino.  Here are a few of his comments from the video above that were posted at Jim Sinclair's site.

Analyst-trader Gregory Mannarino says, “The Fed is the sole driver for the market at this time.  They’ve caused an absolute and disconnect in the economy and the market.  When that happens, you know you have a bubble. . . . The Federal Reserve is hell-bent on hyper-inflating the stock market at the expense of the U.S. dollar.”  Mannarino predicts, “I believe the market will be higher at the end of the year than it is now.  Why? Because they’re going to hammer the dollar and hammer metals too.”  Mannarino goes on to say, “They do not want us to believe that gold and silver are real money.  They want you to believe that pieces of paper with 100 on them are real, and they can’t have people in real assets.”  Mannarino says the wealthy of the world are not being scared off by the Fed’s price manipulation in the metals markets.  He claims, “Anyone who has their eyes open here understands the demand for these metals has never been higher by the richest people in the world. . . . You’re going to see gold, silver and crude spike to highs people are not going to believe.”  As far as the not-so-rich, Mannarino simply says, “. . . They’re being led to the slaughter.”  Join Greg Hunter as he goes One-on-One with Gregory Mannarino of TradersChoice.net.    

Friday, May 3, 2013

What Happens When You Disobey Economic Law


from ZeroHedge:
These are clear warnings signs that a rational person simply cannot ignore. Bottom line, Nations are going bust. And the worse things get, the more desperate their tactics become. This isn't the first time that the world has been in this position. This time is not different. History shows that there are serious, serious consequences to running unsustainably high debts and deficits. And those consequences have almost invariably involved pillaging people's wealth, savings, livelihoods and liberties... either directly or indirectly. What's happening right now is playing out in textbook fashion. More taxes, more debt, more printing, more confiscation, less freedom. I’m not talking about the end of the world here, I’m talking about difficult times ahead, and the things that go beyond economics. It’s time to face facts and look at how society will change (and has already changed). Many people will resist the change and instead cling desperately to the old system - the cycle of debt and consumption that provided jobs, stability, and prosperity. These people will have their lives turned upside down because that system is gone forever. And in case it still weren't obvious, here is three minutes of clarity from Ron Paul and Jim Rogers..."I would expect that there is going to be a lot more chaos still to come." - Ron Paul; “They won’t take our bank accounts…they will take our retirement accounts.” - Jim Rogers Via Simon Black of Sovereign Man blog, The world is truly an enormous place... and, despite the dearth of good news and positive trends out there, I still see a lot of amazing opportunities in my travels. But it's really important to remain grounded about the challenges that face us. As I pen this letter to you, in fact, - The NSA's Utah data center, which will intercept every phone call, email, and tweet sent across the Internet, is nearing completion. - The Marketplace Fairness Act, which will create additional sales taxes on US-based Internet transactions, is set to pass the Senate next week. - The government of Cyprus just passed the final bail-in measures, officially authorizing the direct confiscation of people's savings in that country's banking system. - The Bank of Japan recently announced its intentions to double down on their already unprecedented money printing operations. - Not to be outdone, the US Federal Reserve just announced that they will maintain their Quantitative Easing program, which dilutes the existing money supply by more than $1 trillion annually. - At $16.83 trillion, the US federal debt is at a record high and set to breach $17 trillion early this summer. - President Obama recently proposed to cap the tax deferral benefit on Individual Retirement Accounts in the Land of the Free These are clear warnings signs that a rational person simply cannot ignore. Bottom line, nations are going bust. And the worse things get, the more desperate their tactics become. This isn't the first time that the world has been in this position. This time is not different. History shows that there are serious, serious consequences to running unsustainably high debts and deficits. And those consequences have almost invariably involved pillaging people's wealth, savings, livelihoods and liberties... either directly or indirectly. What's happening right now is playing out in textbook fashion. More taxes, more debt, more printing, more confiscation, less freedom. I’m not talking about the end of the world here, I’m talking about difficult times ahead, and the things that go beyond economics. It’s time to face facts and look at how society will change (and has already changed). Many people will resist the change and instead cling desperately to the old system– the cycle of debt and consumption that provided jobs, stability, and prosperity. These people will have their lives turned upside down because that system is gone forever. And in case it still weren't obvious, I'd like to present Ron Paul and Jim Rogers, speaking together at our event in Chile a few weeks ago, with their own views on the situation.

“They won’t take our bank accounts…they will take our retirement accounts.” - Jim Rogers

"We are going to have a calamity in economics and political crises as economies worldwide are a lot weaker than they tell us." - Ron Paul

"I would expect that there is going to be a lot more chaos still to come." - Ron Paul

"There are so many distortions because we disobeyed economic law - no matter what Bernanke tell's you." - Ron Paul

"Bernanke's whole intellectual career has been dedicated to the study of printing money." - Jim Rogers

"I don't doubt [the confiscation] at all; and they will use force and they'll use intimidation." - Ron Paul