Membership voice, March - April 2006
Energy supply and demand is exerting a major influence on world economics at the moment, with consequences on technology development and TWI activities. After a period of stability between 1986 and 2004, when a barrel of crude oil was largely below $30, oil prices have shot up to over $60 in recent months and there are no signs of a return to lower prices. Demand for energy is growing rapidly, fuelled by the needs of China and India where consumption has more or less doubled in ten years and the continuous requirements from Europe and the USA.
Two thirds of the proven oil reserves are concentrated in the Middle East and there are serious concerns about stability of supply. Oil production in the North Sea is currently only half of its peak in 2000, and declining steadily, as is domestic production in the USA.
The high oil prices are making the exploitation of deep underwater fields commercially viable. There are production wells in 1500m of water off the coast of Brazil and there is drilling at 2500m depth in the Gulf of Mexico. Subsea pipelines and risers in deep waters are subjected to unpredictable loading in service due to tidal variances, and the integrity of girth welds throughout the lifetime of the structure is vital.
TWI is offering a complete fatigue qualification facility using full-scale resonance testing for pipes up to 36 inches in diameter. The high oil price is also making wells containing high levels of corrosive H 2 S or CO 2 commercially viable. This, however, requires a careful selection of corrosion resistant alloys and selection of appropriate welding procedures and corrosion mitigation measures. TWI is active in NACE committees and has several research programmes on materials for sweet or sour service.
Concerns over supply are driving investment in alternative energies and we are seeing a revival of nuclear power. New nuclear power plants are being built and many existing nuclear plants, built in the 60s and 70s, will soon need to be replaced. The quality requirements placed upon nuclear fabrication offer many opportunities for TWI technologies in advanced arc welding, EB welding, NDT and structural integrity.
In the UK, the Nuclear Decommissioning Authority has been set up to manage the clean up of civil nuclear sites. The USA is evaluating the suitability of a site in the Nevada Desert for storage of nuclear waste. TWI is offering advanced welding technologies for the manufacture of waste canisters for storage and transportation.
Another consequence of the high oil price is the increased R&D effort on renewable energies. TWI is involved with REMTEC, the Renewable Energy Manufacturing Technology Centre.
REMTEC's objectives are to develop, validate and demonstrate innovative fabrication solutions for renewable energy sources. For example, the manufacture of very large wind turbines for deployment offshore will require the construction of 100m tall steel towers with wall thicknesses over 50mm. Conventional arc welding technologies are unlikely to be economical but narrow gap processes or reduced pressure electron beam welding may offer cost effective solutions.
More information on TWI energy activities can be found on this website under Industries - Oil, Gas and Chemical, and Industries - Power.
Fred Delany - Head of Industrial Member Services
