You have reached the Scan Systems’ OCTG Insider: Fall 2015 Publication. In this quick and easy-to-read newsletter, you will find the most recent evolutionary technology in the OCTG world, as well as breaking oil and gas industry news.

Here at Scan Systems Corp., we strive to keep you in the loop on the important OCTG events and innovations happening around you.

Download the PDF below and enjoy!


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One of the results of the 1970s oil crisis was the U.S. ban on oil exports. The national intent was to push towards energy independence while protecting the domestic economy. This occurred 40 years ago and with the current state of oil prices and our growing independence, many believe the ban has outlived its usefulness.

The goal of the ban originally was to help the economy, businesses, and consumers. Many believe the opposite has taken place over the years and that the lift will allow for a more efficient market that encourages more investments.

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With the ban lifted, smaller companies and producers will have the opportunity to expand their marketplace for oil. First Titan Corp. is one company that will be positively affected. The CEO Sydney Jim states, “Right now, we’re limited in what we can do. With the ban gone, we could easily move oil to places more willing to pay a fair price. Free trade is always good business. The domestic oil and gas industry needs this legislation – it would go a long way to easing the current slump and making us more competitive, as well as greatly aiding our revenue stream.”

 

Source: http://www.pennenergy.com/articles/pennenergy/2015/10/lifting-oil-export-ban-could-give-boom-for-smaller-producers.html


“Shale producers are justifiably proud of their ability to survive the perfect storm that has hit their industry since the middle of 2014,” comments John Kemp of Reuters.

The hardship that has come along with the collapse in oil prices has forced shale producers to cut costs, sustain their output, and ultimately become more efficient in their operations.

With a pause in the shale revolution, the shift has gone from growth to survival.

“Some analysts question whether the Organization of the Petroleum Exporting Countries (OPEC) is winning its price war against high-cost producers. They point to resilience in shale production in North Dakota and Texas as evidence that OPEC’s strategy has had only limited success.”

Even though this shift has forced an improvement in operations, it does not negate the fact that shale growth is struggling causing a pause in the shale revolution. Prior to June 2014, North Dakota’s oil output was increasing at a compound rate of 2.37 percent per month. Since then, the state’s oil output has shrunk to a .38 percent increase each month.

Some say OPEC’s strategy has had only limited success. “By allowing prices to tumble, OPEC has shut in 300,000 to 500,000 bpd of probable shale production growth in North Dakota.”

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OPEC’s strategy, keeping output steady and forcing countries to adjust production, has been reasonably successful. However, it doesn’t eliminate the readiness of shale producers to increase output again when prices rise from $50 to $60 or $70 per barrel, which would actually worsen oversupply in the long run.

“The revolution cannot be reversed. Techniques once mastered will not be unlearned.” Oil prices and production will eventually rise again, and due to the current situation, producers will have learned to operate at a lower cost base than before.

 

Source: John Kemp, Reuters: http://www.reuters.com/article/2015/10/20/usa-oil-kemp-idUSL8N12K2PG20151020

 

 


Whether through our patented portable equipment, or a specialized custom project, we can place precision calibration notches, flat bottom holes, simulated wall reductions, or almost any custom geometry flaw “INSIDE” your test piece without cutting and welding.


Scan Systems Corp. has digitized the longitudinal inspection system signal from the rotating head to the computer system. This prevents outside noise from interfering with the signal and making it difficult to read. This move away from analog signals is revolutionizing the OCTG industry and making inspection processes more accurate and much clearer.


In this quick and easy-to-read newsletter, you will find the most recent evolutionary technology in the OCTG world, as well as breaking oil and gas industry news. We are excited to announce this as the first of many future newsletters.

Here at Scan Systems Corp., we strive to keep you in the loop on the important OCTG events and innovations happening around you.

Download the PDF below and enjoy!


Click to Download