What matters is the PROVEN AOT is going to theMIDDLE EAST as per the EVIDENCE below. This is about the PRESENT, NOW & the FUTURE, not what happened 15 years ago.
QS Energy Issues Update on AOT Opportunities in the Middle East
SANTA BARBARA, CA -- (Marketwired) -- 06/15/16 --
QS Energy, Inc. (OTCQX: QSEP)
Global Energy Markets
Regional Update: The Middle East
Starting with this report on the Middle East, we will be providing our shareholders and the investment community with QS Energy's viewpoint on the world's most important oil producing regions. In addition to identifying the latest trends affecting these areas, we will also highlight the companies and the nationalized, government-owned entities active in crude oil production and transport. Our intention is to deliver insights into these high-output regions and, where applicable, discuss specific projects now in non-disclosure-level discussions, as well as others requesting proposals quantifying the benefits of deploying AOT technology.
The Middle East Opportunity
Located at the intersection of Eurasia and Africa, and bound by the Mediterranean Sea, the Indian Ocean, the Red Sea and the Arabian Sea, the Middle East is comprised of 17 nation states. Long suspected of having potentially large oil reserves due to natural seepage in the Persian Gulf, the region was first drilled in a meaningful way by Standard Oil Company (SOCAL) in 1932 with a successful strike in Bahrain. Beginning with the modern era of energy production in 1965, the Middle East quickly emerged as the leading oil producing region in the world.
The most oil-rich of these countries border the Persian Gulf and lie within the Arabian Peninsula. In order of total petroleum and other liquids production they are: Saudi Arabia (11,624,000 bpd), United Arab Emirates (3,471,000 bpd), Iran (3,375,000 bpd), Iraq (3,371,000 bpd), Kuwait (2,767,000 bpd), Qatar (2,055,000 bpd), and Egypt (667,000 bpd). The leading oil producers of the Middle East are nationalized oil companies (NOCs) formed and controlled by the governments or hereditary monarchies of the nations in which they are located. The largest of these include Saudi Arabian Oil Company (Saudi Aramco), Abu Dhabi National Oil Company (ADNOC), Bahrain Petroleum Company (BAPCO), Basra Oil Company (formerly South Oil Company) of Iraq, Kuwait Petroleum Corporation (KPC), National Iranian Oil Company (NIOC), Petroleum Development Oman (PDO), Qatar Petroleum, and Zakum Development Company (ZADCO).
Since our first distributorship agreement was signed with Energy Tech Premier Group in 2013, this project management and technical services firm has represented AOT to prospective customers and joint venture partners in the Middle East and the continent of Africa. Originally based in Nairobi, Kenya, ETPG recently re-domiciled to Dublin, Ireland with an affiliate office in Zürich, Switzerland, providing QS Energy with excellent strategic positioning and greater flexibility in our offshore fabrication capabilities.
Often referred to as the "Celtic Tiger" due to its economic prosperity and export competitiveness, Ireland is renowned for its favorable treatment of foreign companies interested in establishing research and manufacturing operations. With the assistance of ETPG leadership, we are exploring the various programs offered through economic development agencies such as the Industrial Development Authority (IDA Ireland), the International Financial Services Centre (IFSC) and, more broadly, the European Central Bank (ECB).
AOT Infrastructure Optimization Projects
Due to a convergence of factors, including political, technological, societal and economic, the dynamics of the world's market-making OPEC member nations are evolving dramatically. Not the least of these developments is the highly anticipated initial public offering of Saudi Aramco, a move that would overnight create an expected investor-held market cap of $2 trillion to $3 trillion. As the largest IPO in history, Saudi Arabian Oil Co. represents both long-term liquidity for the Saudi Royal family and a projected $1 billion in bankers' fees for those handling the largest investment-bank deal ever.
This push to turn a portion of the world's richest oil reserves into drilling rights with a value set by the biggest stock float in trading history is emblematic of the changes afoot. Despite many decades of global market dominance and massive revenues that have brought wealth, infrastructure development, and modernization to nations throughout the Middle East, the producers exploiting this region and their foreign partners face significant challenges. The current global oversupply of oil and resultant sharp price drop are squeezing GDP and budgets at precisely a time when the rulers of these petro states are trying to plan for a post-oil era, however far in the future that may occur. Topping the list of pressing concerns are increasing upstream output, improving operational efficiencies during transport, and reducing time to market by expanding pipeline and refinery capacity.
With the benefit of two AOT installations on high volume commercial pipelines in North America, coupled with extensive testing of crude oil samples from this region, we are currently in discussions with several of the above named entities. Following visits to the headquarters of these organizations by Energy Tech Premier Group and ongoing collaboration with QS Energy engineers, we believe we have convincingly made the case for the use of value engineered AOT systems to bring a new level of performance to the infrastructures of some of the pre-eminent energy companies in the world.
As is the case in every customer engagement, we begin by gathering operational metrics specific to the target pipeline infrastructure under a mutual non-disclosure agreement (NDA), enabling us to provide a highly detailed AOT Case Study Analysis report. We have recently tabled a Memorandum of Understanding letter with one such prospective customer and are in the proposal phase of multi-vessel AOT systems with numerous producers and transporters in the region.
Other AOT Targets
Due to our ongoing collaborations with over a dozen crude oil transporters in North America and the engineering consultants and contractors responsible for building, maintaining and upgrading their delivery systems, we are continually seeing new applications for AOT and the science of electrorheology which drives the functionality of our industrial hardware. Fortunately, a number of these engineers, senior executives, and operations specialists familiar with the efficacy of our equipment work in a consultative capacity with entities in the Middle East. Through their collaboration with us we are exploring the opportunities that may exist within prospective customers not yet in direct discussions with ETPG or QS Energy.
In our next Regional Update, we will discuss two of our technology partners assisting us in attracting joint venture and deployment opportunities in the rapidly maturing Latin-American energy industry.
We invite you to contact us anytime with your questions, comments or suggestions at investor@QSEnergy.com or sales@QSEnergy.com. For QS Energy news and articles concerning the energy industry, follow us on Twitter and LinkedIn.
For further information about QS Energy please read our SEC filings at www.sec.gov, and, in particular, the risk factor sections of those filings.
Safe Harbor Statement: Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.qsenergy.com/site-info/disclaimer.
Sincerely,
Greggory M. Bigger CEO & Chairman QS Energy, Inc.
www.QSEnergy.com
Disclaimer
All statements and expressions are the sole opinion of the company and are subject to change without notice. The Company is not liable for any investment decisions by its readers or subscribers. It is strongly recommended that any purchase or sale decision be discussed with a financial advisor, or a broker-dealer, or a member of any financial regulatory bodies. The information contained herein has been provided as an information service only. The accuracy or completeness of the information is not warranted and is only as reliable as the sources from which it was obtained. Investors are cautioned that they may lose all or a portion of their investment in this or any other company.
Information contained herein contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities and Exchange Act of 1934, as amended. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical facts and may be "forward looking statements". Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements may be identified through the use of words such as "expects", "will", "anticipates", "estimates", "believes", or by statements indicating certain actions "may", "could", "should" or "might" occur.
QS Energy Releases AOT Technical Update of Value Engineered Industrial Equipment Designed to Optimize Performance of Crude Oil Pipelines
SANTA BARBARA, CA -- (Marketwired) -- 06/27/16 -- QS Energy, Inc. (the "Company") (OTCQX: QSEP), a developer of integrated technology solutions for the energy industry, today released an AOT Technical Update documenting the functionality and operational benefits of its Applied Oil Technology crude oil pipeline optimization technology. Currently in commercialization phase and undergoing case study review with leading pipeline operators, AOT is designed to allow crude oil to flow at a higher volume by subjecting it to a high-voltage/low-amperage electrical field which decreases viscosity and reduces friction in pipelines.
"During discussions with shareholders and industry analysts we're often asked about the motivating factors which drive interest in AOT from producers and operators in Canada, South America, Europe and the Middle East," stated Greggory M. Bigger, QS Energy Chief Executive Officer and Chairman. "This document is meant to educate interested parties on how QS Energy operates and the many factors involved in reviewing the needs of our customers, determining the optimal configuration for our technology, and collaborating with executives and engineering professionals within our industry to ensure the efficient, safe and economical delivery of crude oil from oil field to market."
Based in California with supply chain partners in Casper, Wyoming, QS Energy has pioneered the use of electrical fields to improve the performance of crude oil pipelines and lower operating expenses (Opex) while favorably impacting tariff revenues at a time when the energy industry is seeking to mitigate margin compression and gain measurable efficiencies.
"From the development of the first AOT prototype, up to our latest value engineered system, our overriding goal has been to leverage our patent protected technology to provide quantifiable bottom line opportunities for our customers," Mr. Bigger added. "Extensive studies of the mechanical behavior of crude oil in pipelines have historically identified two primary factors capable of improving flow -- the lowering of the viscosity of the oil, and reducing friction within the line. AOT has demonstrated the ability to do both to an extent that pressure drop is reduced, flow volume is increased, and power consumption at pumping stations is lessened."
Entirely designed, fabricated and tested in the United States, AOT is ISO/TS 9001-compliant and ASME-certified industrial hardware approved for use in hazardous location Class 1, Div. I. rated areas and designed to optimize the performance of crude oil pipeline infrastructures.
AOT is the energy industry's first crude oil pipeline flow improvement solution using an electrical charge to anisotropically cause a conformational change of the microscopic particles native to unrefined oil, which lowers the viscosity of the oil and improves flow. AOT has been rigorously tested by Temple University's Department of Science and Technology and the U.S. Department of Energy, and is being commercialized in collaboration with engineering teams at independent oil production and transportation entities interested in harnessing its proven efficacy to increase pipeline performance and flow.
Benefits: Lowers viscosity of a wide spectrum of crude oils Reduces friction within pipelines Counters pressure drop, reducing the amount of energy used to power pump stations Minimizes friction loss, or the loss of pressure along the walls of the pipe Increases flow rate and volume of crude oil transported within MAOP (maximum allowable operating pressure) ratings Positive impact on tariff revenue for pipeline operators (transporters) Studies are currently underway to determine effectiveness in suppressing deposition of wax, reducing sludge and hydrocarbon buildup, and suppressing turbulence
The Importance of Friction Reduction in Pipelines
To achieve efficient movement of any fluid in a pipeline, the pressure maintained in the line and the viscosity of the fluid are important factors in ensuring optimal flow. Pressure must be used to move the fluid forward, and due to friction, this is impeded to varying degrees (fluid pressure drop). When pipeline flow and pressure reach a certain point, measured in Reynolds numbers, the flow can change from stable (laminar) to chaotic (turbulent), which introduces further inefficiencies in the forward movement of the fluid. By reducing the viscosity of crude oil, AOT also mitigates friction within the pipeline which helps improve pressure loss reduction and achieve higher flow volume.
The Physics Behind AOT
The development of AOT technology has its basis in research conducted by scientists, physicists and engineers in the field of electrorheological fluids and magnetorheological suspension. Working with our research and development partner Temple University, QS Energy is able to forecast AOT performance outcomes using mathematical calculations performed by Dr. Rongjia Tao, co-developer of AOT and Chairman of Temple University's Physics Department. Among the core calculations in play are those used to determine expected viscosity reduction of crude oil, anticipated pressure drop within the pipeline, and the estimated amount of AOT operating time necessary to treat all crude oil throughout the length of a pipeline.
The Importance of Viscosity Reduction in Pipelines
Since the construction of the first pipelines to move crude oil from the well to downstream destinations such as storage tanks and refineries, the industry has sought to improve flow by various means. The use of thinners (diluents), Drag Reduction Agents (DRAs), and heat have been introduced to supplement the pipeline pressure achieved with pumping stations. Fluid viscosity plays an important role in the function of any hydraulics system and is one of the main sources of internal fluid friction. Friction is responsible for major pressure loss, a factor that must be overcome by a strong pressure gradient created by a pump. By reducing viscosity of crude oil while in transit and contributing to the reduction of friction, AOT has shown an ability to counter pipeline pressure drop, thereby improving the efficiency of the system as a whole. The reduction of power required for flow also decreases demand on pump station motors, directly reducing the amount of carbon dioxide (CO2) emitted.
The Value of AOT in Today's Evolving Energy Sector
As the global oil and gas industry continues to recalibrate its operations in response to the current supply surplus, producers and transporters are investing in technologies that reduce cost and improve efficiencies. Since most pipelines are dependent on committed and uncommitted toll rates, AOT's efficacy in improving flow rates by one-and-a-half to three percent has the potential to greatly impact tariff revenues and profitability. When fully optimized, the AOT system may improve the efficiency of virtually any crude oil pipeline system, providing the opportunity for pipeline operators to reduce operating costs and drive more revenue based on applicable toll rates due to higher flow rates.
"A significant percentage of pipelines are operated at a constant pressure or power level, providing enormous opportunity for the viscosity reduction capabilities of AOT to increase pipeline capacity and flow volume and therefore boost revenues derived from tariff rates," Mr. Bigger commented. "Following several years of design refinements and the current commercialization phase, we believe AOT is uniquely positioned within the global energy industry as a cost-efficient, low maintenance solution capable of having a positive impact on the operations of oil producers and transporters during today's down cycle and well into the future. We are now ready to offer this technology as a complete turn-key, pressure drop reduction tool that can be customized to fit the needs of a variety crude oil pipeline companies."
Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.qsenergy.com/site-info/disclaimer
About AOT™ (Applied Oil Technology)
Developed in partnership with scientists at Temple University in Philadelphia, AOT (Applied Oil Technology) is the energy industry's first crude oil pipeline flow improvement solution using an electrical charge to coalesce microscopic particles native to unrefined oil, thereby reducing viscosity. Over the past four years AOT has been rigorously prepared for commercial use with the collaboration of over 30 engineering teams at 19 independent oil production and transportation entities interested in harnessing its proven efficacy to increase pipeline performance and flow, drive up committed and uncommitted toll rates for pipeline operators, and reduce pipeline operating costs. Although AOT originally attracted the attention of pipeline operators interested in improving their takeaway capacity during an historic surge in upstream output resulting from enhanced oil recovery techniques, the technology now represents the premiere solution for improving the profit margins of producers and transporters during today's economically challenging period of low spot prices and supply surplus.
About QS Energy, Inc.
QS Energy, Inc. (OTCQX: QSEP), provides the global energy industry with patent-protected industrial equipment designed to deliver measurable performance improvements to crude oil pipelines. Developed in partnership with leading crude oil production and transportation entities, QS Energy's high-value solutions address the enormous capacity inadequacies of domestic and overseas pipeline infrastructures that were designed and constructed prior to the current worldwide surge in oil production. In support of our clients' commitment to the responsible sourcing of energy and environmental stewardship, QS Energy combines scientific research with inventive problem solving to provide energy efficiency 'clean tech' solutions to bring new efficiencies and lower operational costs to the upstream, midstream and gathering sectors. More information is available at: www.QSEnergy.com
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