Oil and Gas sector in India

The oil and gas sector is pretty well developed in India, and contributes a large share to India’s energy basket and will be doing the same for the next 15–20 years. Oil and gas is a major part of the energy sector, which is essential for the growth of the manufacturing, utilities, infrastructure and commercial services industries. An estimated 7 per cent growth in the Indian economy is expected to approximately double India’s per capita energy consumption over the next 20 years. Since there is a link between energy demand and economic growth, the Indian oil and gas sector, which provides the country with a significant portion of its energy requirements, is a key metric that will drive future GDP growth. The future opportunities for the sector include assessing the feasibility of using non-conventional fuels such as coal bed methane, hydrogen and biodiesel. The sector must lay greater focus on developing midstream infrastructure, with specific attention on city gas distribution networks, and the construction of strategic storage facilities as a safeguard against short term disruptions in fuel supply. The government is constructing a total capacity of 15 million metric tons(MMT) in the form of strategic storage facilities for crude oil and petroleum products. As such this can be used as an emergency mechanism in the case of short term disruptions in fuel supply. In the first phase, the construction of the 5 MMT storage space has been started simultaneously at Vishakapatnam (1.3 MMT), Mangalore (1.5MMT) and Padur (2.5 MMT).

The proposed storage structure is expected to become underground. Effectively capitalising upon potential opportunities, clubbed with the increasing demand for natural gas, favourable government policies, large scale investments and the recent discovery offshore gas reserves are expected to fuel strong growth in the Indian oil and gas sector. State-run oil and gas companies in India must form partnerships or joint ventures with foreign players so as to effectively use the technology and monetary resources for ultradeep water exploration, which can yield significant results. Currently, Indian companies are only equipped with the technology that helps in exploring on land, or in shallow basins. The Indian oil and gas industry has been providing significant opportunities in the development of midstream infrastructure, with expected capacity addition of 6,000–8,000 km pipeline to the National gas grid in different parts of the country. Apart from this, the gas distribution network is not developed in most parts of the country except in cities such as Delhi and Mumbai. This particularly offers alternative fuel in the vehicular segment, which offers a 20 per cent cost benefit over diesel.

Liquid Penetrant Test

Non-destructive Examination (NDE) refers to those inspection methods, that allow materials to be examined without changing or destroying their usefulness. NDE is a very important part of the quality assurance program. Different NDE methods are employed to ensure that the weld meets design specifications and does not contain defects. The liquid Penetrant test is capable of detecting surface - connecting discontinuities in ferrous and nonferrous alloys. Liquid penetrant tests are used to examine the weld joint surfaces, intermediate checks of individual weld passes and completed welds. PT is commonly employed on stainless steels where magnetic particle examination is not possible. The examiner should recognize that many specifications limit contaminants in the penetrant materials which could adversely affect the weld or parent materials. Most penetrant manufacturers will provide material certifications on the amounts of contaminants such as chlorine, sulfur, and halogens. A limitation of PT is that standard penetrant systems are limited to a maximum of 125°F (52°C) so the weld must be cool which significantly slows down the welding operation. High-temperature penetrant systems can be qualified to extend the temperature envelope. During PT, the test surface is cleaned and coated with a penetrating liquid that seeks surface-connected discontinuities. After the excess surface liquid penetrant is removed, a solvent-based powder suspension (developer) is normally applied by spraying. The liquid in any

discontinuity bleeds out to stain the powder coating. An indication of depth is possible if the Inspector observes and compares the indication bleed out to the opening size visible at the surface. The two general penetrant techniques approved for use include the colour contrast penetrant technique (normally red in colour to contrast with a white background) and the fluorescent penetrant technique, which uses a dye that is visible to ultraviolet light. For sensitivity, fluorescent penetrant techniques may be used to detect fine linear type indications. The examination is performed in a darkened area using a filtered blacklight. Three different penetrant systems are available for use with both of the techniques, they include a. Solvent removable. b. Water washable. c. Post emulsifiable. Compatibility with base metals, welds, and process material should be considered before penetrants are used since they can be difficult to remove completely. Some requirements listed in article6 0f ASME include:

a. Inspection is to be performed in accordance with a procedure (as specified by the referencing code section).

b. Type of penetrant materials to be used.

c. Details for pre-examination cleaning which includes minimum drying time.

d. Dwell time for the penetrant.

e. Details for removing excess penetrant, applying the developer, and time before interpretation.

f. Evaluation of indications in terms of the accepted standards of the referencing code.

g. Post examination cleaning requirements.

h. Minimum surface illumination (visible or blacklight) of the part under examination.

Oil and Natural Gas

Oil and natural gas are strings of carbon and hydrogen formed from the organic material that has been compressed over millions of years. Oil and natural gas are generally referred to as petroleum. They are often found together. If a reservoir i.e an area underground has only gas and no oil, it is called non-associated gas. A reservoir containing both oil and gas is referred to as associated gas. The oil and gas found underground come in different grades or qualities. In an ordinary sense, the quality of oil is described in terms of its sweetness and heaviness. An increase in the amount of sulfur in the oil leads to the sweetness of oil. Oil with less sulfur is sweeter and requires less processing before use, and is, therefore, more valuable. The heaviness of oil refers to its density. The lighter crude oil can be refined and converted into higher value products, such as the gasoline (or petrol) used by car owners. Heavier crude tends to flow slowly and has more unwanted chemicals that must be refined out. A degree-based gravity scale created by API help compares the relative density of various crudes. Light crude is measured above 31.1API while heavy crude measures below 22.3API. Natural gas is a mixture of methane and some other contaminants. On the amount of hydrogen sulfide in the reservoir, it can be described as either sweet or sour. Refined gas, leaving mostly methane, it is called dry gas. Often natural gas is condensed into natural gas liquids, such as propane and butane. The British thermal unit (BTU) is used to measure the energy output of gas. As gas burns cleaner and has a less destructive environmental impact upon use than oil or coal, the challenges associated with storage and transport makes it more expensive. The oil reserves are usually measured in tons or barrels of oil. Production quantities are abbreviated using “bbl” (or barrels of oil per day, bbl/d or bpd). One tonne is somewhere between six and eight barrels of oil.

Reserves and production quantities of gas are measured in cubic meters (m3) or standard cubic feet (scf) The process of getting oil and gas out of the ground begins with exploration and appraisal. The Oil and gas found underground in reservoirs are sealed but connected to other chambers of oil and gas underground. On identifying a reserve of oil is, the company's often produce a description of the quality of the oil and the estimated amount is measured either by volume (barrels) or by weight (tons) Price fluctuations in oil and gas can impact the direction of the industry because costs are different at different extraction points. Even though the prices are fluctuating, the demand for energy, including oil and gas, is increasing globally. Even though the alternative forms of energy are becoming more popular, there are still strong indications that the use and production of oil and gas will continue. With the increasing industrial energy efficiency, the demand for transportation and increasing population means there is an overall increasing need for energy.