Koil Energy Solutions Inc. (KLNG)

[JoeSmith]

Yes Chev those dollar amounts were all for different anode projects (cathodic protection) some were for piers, some are for off shore. But the point is cathodic protection is very big business.
I see the Minerals Management Service, part of the U.S. Dept. of the Interior is interested in corroded pipelines in the Gulf and in the Arctic.
http://www.mms.gov/tarprojectcategories/pipeline.htm

I am having trouble with that site tonight.

General
There are in excess of 30,000 miles (48,000 km) of crude oil and gas marine pipelines in U.S. and
state waters. While such pipelines are generally recognized as the safest, efficient, and cost effective means
of transportation for offshore oil and gas from fixed production facilities, still failures occur because of 1)
material and equipment problems, 2) operational errors, 3) corrosion, 4) storm/mud slides, and 5) third
party incidents (mechanical damage). These, in turn, can result in loss of life, pollution, loss of product
availability, repair expenses, business interruption, and litigation. Several publications (1-4) and a data
base (5) have documented and evaluated the occurrence and causes of offshore pipeline failures that have
taken place historically in the Gulf of Mexico and elsewhere. Each of these indicates that the major cause
has been corrosion, with MMS data attributing over 50 percent of the failures to this mode. Of these,
approximately 63 percent have occurred on pipelines as opposed to risers; and 69 percent resulted from
external, as opposed to internal, corrosion. At the same time, however, only 12 percent of the external
corrosion failures were on pipelines, with 88 percent being on risers. On the one hand, this indicates the
susceptibility that prevails in the vicinity of the water surface, where corrosion rate is generally greatest.
On the other, such failures are normally detected prior to substantial product discharge and are relatively
inexpensive to repair. However, such data probably understates the role of corrosion, since instances where
a pipeline has been weakened by corrosion but failed from an alternative cause (storm or third party
damage, for example) are invariably attributed to the latter and not the former. Additional concerns with
regard to pipeline corrosion failures are that, first, the average failure rate during the 1990’s was more than
double that of the 1980’s; second, the increased focus in the Gulf of Mexico upon deep water production
indicates that failures, where they occur, will be more difficult and expensive to address; and, third, the
cathodic protection system design life for many older pipelines has now been exceeded such that external
corrosion may be ongoing and cathodic protection retrofitting required. At the same time, no standardized
procedure presently exists for design of retrofit cathodic protection systems for marine pipelines. Increased
attention has, however, been directed in recent years toward this specific problem; that is, external
corrosion of marine oil and gas pipelines, as evidenced by the fact that a 1991 International Workshop on
Offshore Pipeline Safety (6) included only one paper that explicitly addressed corrosion and corrosion
control; but a more recent MMS International Workshop (7) focused specifically upon this topic.