Sourcesof Uncertainty ReliableMeasurement andSupportfor ... · ReliableMeasurement andSupportfor...

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Reliable Measurement and Support for World Leaders, from World Leaders

Transcript of Sourcesof Uncertainty ReliableMeasurement andSupportfor ... · ReliableMeasurement andSupportfor...

Page 1: Sourcesof Uncertainty ReliableMeasurement andSupportfor ... · ReliableMeasurement andSupportfor WorldLeaders, fromWorldLeaders EmersonProcessManagement METCOServicesLtd EmersonHouse

Reliable Measurementand Support forWorld Leaders,fromWorld Leaders

Emerson Process Management

METCO Services LtdEmerson HouseKirkhill DriveKirkhill Industrial EstateDyceAberdeenAB21 0EU

Tel. +44 (0) 1224 215700Fax +44 (0) 1224 [email protected]/metco

©2008 Emerson Process Management. All rights reserved.

Emerson Process Management and METCO are marks of the Emerson Process Management family of companies. The Emerson logo is a trademark and service mark ofEmerson Electric Co. All other marks are the property of their respective owners.

The contents of this publication are presented for informational purposes only, and while every effort has been made to ensure their accuracy, they are not to beconstrued as warranties or guarantees, expressed or implied, regarding the products or services described herein or their use or applicability. All sales are governedby our terms and conditions, which are available on request. We reserve the right to modify or improve the designs and specifications of our products at any timeand without notice.

Printed in UK

Sources ofUncertainty

Uncertainty can arise due to many factors, such as poor systemdesign or equipment selection, incorrect installation, pooroperation and maintenance or general wear and tear.

Ameasurement systemmay have always providedmeasurementsthat, within an accepted tolerance are repeatable. This does notmean that the measurement is accurate.

Emerson Process Management, one of the eight brandplatforms of Emerson, is a leading global supplier of products,services and solutions that measure, analyse, control, automateand improve process-related operations. The company evolvedfrom the business previously known as Fisher-Rosemount, whichwas already a recognised leader in process-automation productsand technology.

As Emerson Process Management, we now offer even broadercapabilities to help customers control, connect and manage theirprocess and business. Specifically, we've augmented our best-in-classmeasurement, analytical and control products, and innovativePlantWeb® architecture, with a broad array of engineering,consulting, maintenance and projectmanagement services.

From our offices, factories and service centres around the world,our team now offers unmatched capabilities to improve processand asset performance for customers in the chemical, oil and gas,pulp and paper, pharmaceutical, food and beverage, power,waterand wastewater, and other process-related industries.

Process Solutions, one of the divisions of Emerson ProcessManagement, offers a broad array of engineering, consulting,project management and professional services to improveperformance for industrial and process customers.

METCO Services, operating within theProcess Solutions division of EmersonProcess Management, is a leader in thesupply of flow measurement services andsolutions.We are registered with First PointAssessment under registration number10040967 and are also registered withAchilles under registration number 76564.

poor installation

swirl bearing wear

damage

calibration

So what assistance can you expect from METCO in managing the risk of uncertainty?

Quantifying the costs of uncertainty

Once the measurement uncertainty is known it is possible tocalculate the cost of the uncertainty. However this is purely afinancial measure and does not take into account the potential

damage to a company’s reputation if it has been proved they haveprovided short measures.

Metering Uncertainty Daily Flow Error Daily Cost Error Annual Flow Error Annual Cost Error

% mmscf/day $/day mmscf/year $/year

0.60

Assume A Gas Field Producing: 40 mmscf/day

Assume AMarket Value Of*: 2900 $/mmscf

0.24 696 87.6 254040

0.80 0.32 928 116.8 338720

1.00 0.40 1160 146.0 423400

1.50 0.60 1740 219.0 635100

2.00 0.80 2320 292.0 846800

5.00 2.00 5800 730.0 2117000

The Cost Of Uncertainty: Natural Gas

Assume An Oil Field Producing: 10000 bbl/day

Assume AMarket Value Of*: 24 $/bbl

The Cost Of Uncertainty: Crude Oil

Metering Uncertainty Daily Flow Error Daily Cost Error Annual Flow Error Annual Cost Error

% bbl/day $/day bbl/year $/year

0.10 10 240 3650 87600

0.20 20 480 7300 175200

0.25 25 600 9125 219000

0.30 30 720 10950 262800

0.50 50 1200 18250 438000

1.00 100 2400 36500 876000

The good news is that the uncertainty can be managed by paying attention to a fewkey points:

• Operational procedures

• Calibration regimes

• Audit programmes

• Design and installation

• Maintenance programmes

Managing uncertainty

*Inflation adjusted 10 year average price of crude oil, 1994-2004 (source: EIA)*Inflation adjusted 6 year average wellhead price of nat gas, 1996-2002 (source: EIA)

Ifyoudon’thavetheresourcestomanageyourmeasurementsystemuncertaintythenMETCOcandoitforyou.Wehavedevelopedinnovative,performancebasedTotalMeteringManagement(TMM)contractsdesignedtobringuncertaintydowntoanacceptablelevelandkeepitthere.

Withuncertaintyimpactingyourbottomlineeveryminuteofeveryday,canyouaffordnottocalltheexpertsinmeteringmanagement?

YourNextStep

METCO Services Limited: Registered in England No: 2783238Registered Office: 2nd Floor, Accurist House, 44 Baker Street, LondonW1U 7AL

114410 MetcoFolder_Eng:MetcoFolder_English_v2 18/12/08 11:13 Page 1

Page 2: Sourcesof Uncertainty ReliableMeasurement andSupportfor ... · ReliableMeasurement andSupportfor WorldLeaders, fromWorldLeaders EmersonProcessManagement METCOServicesLtd EmersonHouse

Points of uncertainty

Anywhere that hydrocarbon orrelated products are measured forvaluation or allocation purposes addsan area of uncertainty. Throughoutthe supply chain potentialmis-measurements accrue resultingin millions of dollars in possiblelost revenue or the overpaymentof duties.

Hydrocarbon producers, transportersand processors measure productflowing into and out of their pipelinesfor valuation or allocation purposes.These measurements are criticalbecause they directly impactprofitability. If measured too low,product is being given away, ifmeasured too high customers arebeing short-changed potentiallydamaging reputation.

All of these measures are subject toerrors that are ultimately expressedas UNCERTAINTY.

In order to maximise profit it isnecessary to manage uncertainty.

Review measurement systems, operations and production reporting, advising areas thatcontribute to uncertainty and making improvement recommendations.

Audit

Perform feasibility and conceptual design studies, including equipment selection sizing anduncertainty analysis. Create functional design specifications and write manuals and procedures.METCOServiceswill alsoconsultonproductionchemistry issuesatall stagesof theplant lifecycle.Thisincludes fluid compatibility, materials selection, chemical treatment, scale and corrosion predictionsandwax depositionalmodels.

Consult

Work on your behalf to manage the process of changing and modifying your measurementsystems to reduce the risk of uncertainty.

Project Manage

Train your staff tomaintain and operate yourmeasurement systems to achieve optimum levels ofuncertainty.

Train

The ongoing provision of field technicians and consultancy services to ensure established levels ofuncertainty can be maintained.

Support

• RECORD: inventory and event logbook

• INSPECT: audit management and reporting

• CALIBRATE: asset calibration scheduling

• ARCHIVE: document control

Software Tools & Solutions

• Real-time, PI-based solutions providing ameasure of uncertainty

• Gathering data from disparate sources

• Presentation on user customised displays

Real-time Performance Management Systems

. . . and we have the tools andexperience to help youmanageyour systems . . .

What’s so uncertainabout uncertainty?

You can expectMETCO Services to . . .

production

terminals

distribution

distributionpower

processing

refining

pipelinenetworks

chemical &petrochemical

RepeatabilityThe closeness of agreementof a numberofmeasurementsmade under the sameoperating conditions.

temperature

AccuracyThe faithful measurementor representation of thetruth.

surfaceimperfections

targetangle

wind

UncertaintyThe estimated amount or percentage by which anobserved or calculated value may differ from the truevalue.

vibration

movement

humidity

Asset Management Metrology Suite

114410 MetcoFolder_Eng:MetcoFolder_English_v2 18/12/08 11:13 Page 2

Page 3: Sourcesof Uncertainty ReliableMeasurement andSupportfor ... · ReliableMeasurement andSupportfor WorldLeaders, fromWorldLeaders EmersonProcessManagement METCOServicesLtd EmersonHouse

Reliable Measurementand Support forWorld Leaders,fromWorld Leaders

Emerson Process Management

METCO Services LtdEmerson HouseKirkhill DriveKirkhill Industrial EstateDyceAberdeenAB21 0EU

Tel. +44 (0) 1224 215700Fax +44 (0) 1224 [email protected]/metco

©2008 Emerson Process Management. All rights reserved.

Emerson Process Management and METCO are marks of the Emerson Process Management family of companies. The Emerson logo is a trademark and service mark ofEmerson Electric Co. All other marks are the property of their respective owners.

The contents of this publication are presented for informational purposes only, and while every effort has been made to ensure their accuracy, they are not to beconstrued as warranties or guarantees, expressed or implied, regarding the products or services described herein or their use or applicability. All sales are governedby our terms and conditions, which are available on request. We reserve the right to modify or improve the designs and specifications of our products at any timeand without notice.

Printed in UK

Sources ofUncertainty

Uncertainty can arise due to many factors, such as poor systemdesign or equipment selection, incorrect installation, pooroperation and maintenance or general wear and tear.

Ameasurement systemmay have always providedmeasurementsthat, within an accepted tolerance are repeatable. This does notmean that the measurement is accurate.

Emerson Process Management, one of the eight brandplatforms of Emerson, is a leading global supplier of products,services and solutions that measure, analyse, control, automateand improve process-related operations. The company evolvedfrom the business previously known as Fisher-Rosemount, whichwas already a recognised leader in process-automation productsand technology.

As Emerson Process Management, we now offer even broadercapabilities to help customers control, connect and manage theirprocess and business. Specifically, we've augmented our best-in-classmeasurement, analytical and control products, and innovativePlantWeb® architecture, with a broad array of engineering,consulting, maintenance and projectmanagement services.

From our offices, factories and service centres around the world,our team now offers unmatched capabilities to improve processand asset performance for customers in the chemical, oil and gas,pulp and paper, pharmaceutical, food and beverage, power,waterand wastewater, and other process-related industries.

Process Solutions, one of the divisions of Emerson ProcessManagement, offers a broad array of engineering, consulting,project management and professional services to improveperformance for industrial and process customers.

METCO Services, operating within theProcess Solutions division of EmersonProcess Management, is a leader in thesupply of flow measurement services andsolutions.We are registered with First PointAssessment under registration number10040967 and are also registered withAchilles under registration number 76564.

poor installation

swirl bearing wear

damage

calibration

So what assistance can you expect from METCO in managing the risk of uncertainty?

Quantifying the costs of uncertainty

Once the measurement uncertainty is known it is possible tocalculate the cost of the uncertainty. However this is purely afinancial measure and does not take into account the potential

damage to a company’s reputation if it has been proved they haveprovided short measures.

Metering Uncertainty Daily Flow Error Daily Cost Error Annual Flow Error Annual Cost Error

% mmscf/day $/day mmscf/year $/year

0.60

Assume A Gas Field Producing: 40 mmscf/day

Assume AMarket Value Of*: 2900 $/mmscf

0.24 696 87.6 254040

0.80 0.32 928 116.8 338720

1.00 0.40 1160 146.0 423400

1.50 0.60 1740 219.0 635100

2.00 0.80 2320 292.0 846800

5.00 2.00 5800 730.0 2117000

The Cost Of Uncertainty: Natural Gas

Assume An Oil Field Producing: 10000 bbl/day

Assume AMarket Value Of*: 24 $/bbl

The Cost Of Uncertainty: Crude Oil

Metering Uncertainty Daily Flow Error Daily Cost Error Annual Flow Error Annual Cost Error

% bbl/day $/day bbl/year $/year

0.10 10 240 3650 87600

0.20 20 480 7300 175200

0.25 25 600 9125 219000

0.30 30 720 10950 262800

0.50 50 1200 18250 438000

1.00 100 2400 36500 876000

The good news is that the uncertainty can be managed by paying attention to a fewkey points:

• Operational procedures

• Calibration regimes

• Audit programmes

• Design and installation

• Maintenance programmes

Managing uncertainty

*Inflation adjusted 10 year average price of crude oil, 1994-2004 (source: EIA)*Inflation adjusted 6 year average wellhead price of nat gas, 1996-2002 (source: EIA)

Ifyoudon’thavetheresourcestomanageyourmeasurementsystemuncertaintythenMETCOcandoitforyou.Wehavedevelopedinnovative,performancebasedTotalMeteringManagement(TMM)contractsdesignedtobringuncertaintydowntoanacceptablelevelandkeepitthere.

Withuncertaintyimpactingyourbottomlineeveryminuteofeveryday,canyouaffordnottocalltheexpertsinmeteringmanagement?

YourNextStep

METCO Services Limited: Registered in England No: 2783238Registered Office: 2nd Floor, Accurist House, 44 Baker Street, LondonW1U 7AL

114410 MetcoFolder_Eng:MetcoFolder_English_v2 18/12/08 11:13 Page 1

Page 4: Sourcesof Uncertainty ReliableMeasurement andSupportfor ... · ReliableMeasurement andSupportfor WorldLeaders, fromWorldLeaders EmersonProcessManagement METCOServicesLtd EmersonHouse

Points of uncertainty

Anywhere that hydrocarbon orrelated products are measured forvaluation or allocation purposes addsan area of uncertainty. Throughoutthe supply chain potentialmis-measurements accrue resultingin millions of dollars in possiblelost revenue or the overpaymentof duties.

Hydrocarbon producers, transportersand processors measure productflowing into and out of their pipelinesfor valuation or allocation purposes.These measurements are criticalbecause they directly impactprofitability. If measured too low,product is being given away, ifmeasured too high customers arebeing short-changed potentiallydamaging reputation.

All of these measures are subject toerrors that are ultimately expressedas UNCERTAINTY.

In order to maximise profit it isnecessary to manage uncertainty.

Review measurement systems, operations and production reporting, advising areas thatcontribute to uncertainty and making improvement recommendations.

Audit

Perform feasibility and conceptual design studies, including equipment selection sizing anduncertainty analysis. Create functional design specifications and write manuals and procedures.METCOServiceswill alsoconsultonproductionchemistry issuesatall stagesof theplant lifecycle.Thisincludes fluid compatibility, materials selection, chemical treatment, scale and corrosion predictionsandwax depositionalmodels.

Consult

Work on your behalf to manage the process of changing and modifying your measurementsystems to reduce the risk of uncertainty.

Project Manage

Train your staff tomaintain and operate yourmeasurement systems to achieve optimum levels ofuncertainty.

Train

The ongoing provision of field technicians and consultancy services to ensure established levels ofuncertainty can be maintained.

Support

• RECORD: inventory and event logbook

• INSPECT: audit management and reporting

• CALIBRATE: asset calibration scheduling

• ARCHIVE: document control

Software Tools & Solutions

• Real-time, PI-based solutions providing ameasure of uncertainty

• Gathering data from disparate sources

• Presentation on user customised displays

Real-time Performance Management Systems

. . . and we have the tools andexperience to help youmanageyour systems . . .

What’s so uncertainabout uncertainty?

You can expectMETCO Services to . . .

production

terminals

distribution

distributionpower

processing

refining

pipelinenetworks

chemical &petrochemical

RepeatabilityThe closeness of agreementof a numberofmeasurementsmade under the sameoperating conditions.

temperature

AccuracyThe faithful measurementor representation of thetruth.

surfaceimperfections

targetangle

wind

UncertaintyThe estimated amount or percentage by which anobserved or calculated value may differ from the truevalue.

vibration

movement

humidity

Asset Management Metrology Suite

114410 MetcoFolder_Eng:MetcoFolder_English_v2 18/12/08 11:13 Page 2

Page 5: Sourcesof Uncertainty ReliableMeasurement andSupportfor ... · ReliableMeasurement andSupportfor WorldLeaders, fromWorldLeaders EmersonProcessManagement METCOServicesLtd EmersonHouse

ReliableMeasurementandSupportforWorldLeaders,fromWorldLeaders

EmersonProcessManagement

METCOServicesLtdEmersonHouseKirkhillDriveKirkhillIndustrialEstateDyceAberdeenAB210EU

Tel.+44(0)1224215700Fax+44(0)[email protected]/metco

©2008EmersonProcessManagement.Allrightsreserved.

EmersonProcessManagementandMETCOaremarksoftheEmersonProcessManagementfamilyofcompanies.TheEmersonlogoisatrademarkandservicemarkofEmersonElectricCo.Allothermarksarethepropertyoftheirrespectiveowners.

Thecontentsofthispublicationarepresentedforinformationalpurposesonly,andwhileeveryefforthasbeenmadetoensuretheiraccuracy,theyarenottobeconstruedaswarrantiesorguarantees,expressedorimplied,regardingtheproductsorservicesdescribedhereinortheiruseorapplicability.Allsalesaregovernedbyourtermsandconditions,whichareavailableonrequest.Wereservetherighttomodifyorimprovethedesignsandspecificationsofourproductsatanytimeandwithoutnotice.

PrintedinUK

SourcesofUncertainty

Uncertaintycanariseduetomanyfactors,suchaspoorsystemdesignorequipmentselection,incorrectinstallation,pooroperationandmaintenanceorgeneralwearandtear.

Ameasurementsystemmayhavealwaysprovidedmeasurementsthat,withinanacceptedtolerancearerepeatable.Thisdoesnotmeanthatthemeasurementisaccurate.

EmersonProcessManagement,oneoftheeightbrandplatformsofEmerson,isaleadingglobalsupplierofproducts,servicesandsolutionsthatmeasure,analyse,control,automateandimproveprocess-relatedoperations.ThecompanyevolvedfromthebusinesspreviouslyknownasFisher-Rosemount,whichwasalreadyarecognisedleaderinprocess-automationproductsandtechnology.

AsEmersonProcessManagement,wenowofferevenbroadercapabilitiestohelpcustomerscontrol,connectandmanagetheirprocessandbusiness.Specifically,we'veaugmentedourbest-in-classmeasurement,analyticalandcontrolproducts,andinnovativePlantWeb

®architecture,withabroadarrayofengineering,

consulting,maintenanceandprojectmanagementservices.

Fromouroffices,factoriesandservicecentresaroundtheworld,ourteamnowoffersunmatchedcapabilitiestoimproveprocessandassetperformanceforcustomersinthechemical,oilandgas,pulpandpaper,pharmaceutical,foodandbeverage,power,waterandwastewater,andotherprocess-relatedindustries.

ProcessSolutions,oneofthedivisionsofEmersonProcessManagement,offersabroadarrayofengineering,consulting,projectmanagementandprofessionalservicestoimproveperformanceforindustrialandprocesscustomers.

METCOServices,operatingwithintheProcessSolutionsdivisionofEmersonProcessManagement,isaleaderinthesupplyofflowmeasurementservicesandsolutions.WeareregisteredwithFirstPointAssessmentunderregistrationnumber10040967andarealsoregisteredwithAchillesunderregistrationnumber76564.

poorinstallation

swirlbearingwear

damage

calibration

SowhatassistancecanyouexpectfromMETCOinmanagingtheriskofuncertainty?

Quantifyingthecostsofuncertainty

Oncethemeasurementuncertaintyisknownitispossibletocalculatethecostoftheuncertainty.Howeverthisispurelyafinancialmeasureanddoesnottakeintoaccountthepotential

damagetoacompany’sreputationifithasbeenprovedtheyhaveprovidedshortmeasures.

MeteringUncertaintyDailyFlowErrorDailyCostErrorAnnualFlowErrorAnnualCostError

%mmscf/day$/daymmscf/year$/year

0.60

AssumeAGasFieldProducing:40mmscf/day

AssumeAMarketValueOf*:2900$/mmscf

0.2469687.6254040

0.800.32928116.8338720

1.000.401160146.0423400

1.500.601740219.0635100

2.000.802320292.0846800

5.002.005800730.02117000

TheCostOfUncertainty:NaturalGas

AssumeAnOilFieldProducing:10000bbl/day

AssumeAMarketValueOf*:24$/bbl

TheCostOfUncertainty:CrudeOil

MeteringUncertaintyDailyFlowErrorDailyCostErrorAnnualFlowErrorAnnualCostError

%bbl/day$/daybbl/year$/year

0.1010240365087600

0.20204807300175200

0.25256009125219000

0.303072010950262800

0.5050120018250438000

1.00100240036500876000

Thegoodnewsisthattheuncertaintycanbemanagedbypayingattentiontoafewkeypoints:

•Operationalprocedures

•Calibrationregimes

•Auditprogrammes

•Designandinstallation

•Maintenanceprogrammes

Managinguncertainty

*Inflationadjusted10yearaveragepriceofcrudeoil,1994-2004(source:EIA) *Inflationadjusted6yearaveragewellheadpriceofnatgas,1996-2002(source:EIA)

If you don’t have the resources to manage your measurementsystem uncertainty then METCO can do it for you. We havedeveloped innovative, performance based Total MeteringManagement (TMM) contracts designed to bring uncertaintydown to an acceptable level and keep it there.

With uncertainty impacting your bottom line every minute ofevery day, can you afford not to call the experts in meteringmanagement?

Your Next Step

METCOServicesLimited:RegisteredinEnglandNo:2783238RegisteredOffice:2ndFloor,AccuristHouse,44BakerStreet,LondonW1U7AL

114410MetcoFolder_Eng:MetcoFolder_English_v2 18/12/08 11:13 Page 1

Page 6: Sourcesof Uncertainty ReliableMeasurement andSupportfor ... · ReliableMeasurement andSupportfor WorldLeaders, fromWorldLeaders EmersonProcessManagement METCOServicesLtd EmersonHouse

Reliable Measurementand Support forWorld Leaders,fromWorld Leaders

Emerson Process Management

METCO Services LtdEmerson HouseKirkhill DriveKirkhill Industrial EstateDyceAberdeenAB21 0EU

Tel. +44 (0) 1224 215700Fax +44 (0) 1224 [email protected]/metco

©2008 Emerson Process Management. All rights reserved.

Emerson Process Management and METCO are marks of the Emerson Process Management family of companies. The Emerson logo is a trademark and service mark ofEmerson Electric Co. All other marks are the property of their respective owners.

The contents of this publication are presented for informational purposes only, and while every effort has been made to ensure their accuracy, they are not to beconstrued as warranties or guarantees, expressed or implied, regarding the products or services described herein or their use or applicability. All sales are governedby our terms and conditions, which are available on request. We reserve the right to modify or improve the designs and specifications of our products at any timeand without notice.

Printed in UK

Sources ofUncertainty

Uncertainty can arise due to many factors, such as poor systemdesign or equipment selection, incorrect installation, pooroperation and maintenance or general wear and tear.

Ameasurement systemmay have always providedmeasurementsthat, within an accepted tolerance are repeatable. This does notmean that the measurement is accurate.

Emerson Process Management, one of the eight brandplatforms of Emerson, is a leading global supplier of products,services and solutions that measure, analyse, control, automateand improve process-related operations. The company evolvedfrom the business previously known as Fisher-Rosemount, whichwas already a recognised leader in process-automation productsand technology.

As Emerson Process Management, we now offer even broadercapabilities to help customers control, connect and manage theirprocess and business. Specifically, we've augmented our best-in-classmeasurement, analytical and control products, and innovativePlantWeb® architecture, with a broad array of engineering,consulting, maintenance and projectmanagement services.

From our offices, factories and service centres around the world,our team now offers unmatched capabilities to improve processand asset performance for customers in the chemical, oil and gas,pulp and paper, pharmaceutical, food and beverage, power,waterand wastewater, and other process-related industries.

Process Solutions, one of the divisions of Emerson ProcessManagement, offers a broad array of engineering, consulting,project management and professional services to improveperformance for industrial and process customers.

METCO Services, operating within theProcess Solutions division of EmersonProcess Management, is a leader in thesupply of flow measurement services andsolutions.We are registered with First PointAssessment under registration number10040967 and are also registered withAchilles under registration number 76564.

poor installation

swirl bearing wear

damage

calibration

So what assistance can you expect from METCO in managing the risk of uncertainty?

Quantifying the costs of uncertainty

Once the measurement uncertainty is known it is possible tocalculate the cost of the uncertainty. However this is purely afinancial measure and does not take into account the potential

damage to a company’s reputation if it has been proved they haveprovided short measures.

Metering Uncertainty Daily Flow Error Daily Cost Error Annual Flow Error Annual Cost Error

% mmscf/day $/day mmscf/year $/year

0.60

Assume A Gas Field Producing: 40 mmscf/day

Assume AMarket Value Of*: 2900 $/mmscf

0.24 696 87.6 254040

0.80 0.32 928 116.8 338720

1.00 0.40 1160 146.0 423400

1.50 0.60 1740 219.0 635100

2.00 0.80 2320 292.0 846800

5.00 2.00 5800 730.0 2117000

The Cost Of Uncertainty: Natural Gas

Assume An Oil Field Producing: 10000 bbl/day

Assume AMarket Value Of*: 24 $/bbl

The Cost Of Uncertainty: Crude Oil

Metering Uncertainty Daily Flow Error Daily Cost Error Annual Flow Error Annual Cost Error

% bbl/day $/day bbl/year $/year

0.10 10 240 3650 87600

0.20 20 480 7300 175200

0.25 25 600 9125 219000

0.30 30 720 10950 262800

0.50 50 1200 18250 438000

1.00 100 2400 36500 876000

The good news is that the uncertainty can be managed by paying attention to a fewkey points:

• Operational procedures

• Calibration regimes

• Audit programmes

• Design and installation

• Maintenance programmes

Managing uncertainty

*Inflation adjusted 10 year average price of crude oil, 1994-2004 (source: EIA)*Inflation adjusted 6 year average wellhead price of nat gas, 1996-2002 (source: EIA)

Ifyoudon’thavetheresourcestomanageyourmeasurementsystemuncertaintythenMETCOcandoitforyou.Wehavedevelopedinnovative,performancebasedTotalMeteringManagement(TMM)contractsdesignedtobringuncertaintydowntoanacceptablelevelandkeepitthere.

Withuncertaintyimpactingyourbottomlineeveryminuteofeveryday,canyouaffordnottocalltheexpertsinmeteringmanagement?

YourNextStep

METCO Services Limited: Registered in England No: 2783238Registered Office: 2nd Floor, Accurist House, 44 Baker Street, LondonW1U 7AL

114410 MetcoFolder_Eng:MetcoFolder_English_v2 18/12/08 11:13 Page 1