ABSOLUTELY FALSE. The funds raised were used to develop the PROVEN AOT. Sales of the PROVEN AOT are FAST APPROACHING. The PROVEN AOT is here to stay. This is about the PRESENT, NOW & the FUTURE, not what happened 15 years ago.
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
QS Energy's AOT Crude Oil Pipeline Optimization Technology Under Consideration for High Volume Offshore Marine Terminal Facility
SANTA BARBARA, CA -- (Marketwired) -- 01/10/17 -- QS Energy, Inc. (the "Company") (OTCQB: QSEP), a developer of integrated technology solutions for the energy industry, today announced that it has been asked to expand its product line by developing a high volume AOT (Applied Oil Technology) viscosity reduction pressure vessel called the AOT-XL to improve flow efficiency within an existing crude oil offloading marine terminal. An earlier feasibility study had concluded that to accommodate the operational flow rates of this customer, a complicated and overly expensive deluge of standard AOT units would be required, which would have surpassed the available space for installation. The solution was to design the AOT-XL, a customized system capable of handling extreme flow rates while substantially reducing the complexity of installation and footprint necessary to position the system as requested.
This collaborative project involves a trial assessment and then full and potentially customer sponsored final engineering of the AOT-XL. This specially configured, high volume AOT system was designed upon request by the management team of a trusted, long-term collaborative partner within the midstream sector of the domestic energy industry. Intended for very high volume pipeline environments, the AOT-XL will be fabricated to meet a target of 25,000 barrels per hour capacity (600,000 bpd). Initial laboratory tests of the efficacy of AOT functionality on one of the customer's crude oil samples at Temple University has also shown favorable results. Following a series of site visits by Mr. Bigger and the QS Energy product development team, the Company is currently working towards the goal of collaboratively engineering the custom AOT-XL vessels, in conformity with strict ASME requirements, for an installation and further evaluation.
Mr. Bigger added that the opportunity to customize AOT technology for the marine tanker offloading facility was a direct result of QS Energy's involvement at the 2014 Pipeline Energy Group Conference, an invitation-only industry meeting held annually. Executives and engineers from many of the industry's leading crude oil producers and transporters first learned of AOT during the Company's presentation entitled, 'New Innovations in Flow Assurance for Today's Energy Renaissance.' Following preliminary discussions concerning a potential collaborative development effort, a series of meetings of both teams occurred at QS Energy's offices, Temple University's Department of Physics, and the customer's Gulf of Mexico pipeline infrastructure, including their off-shore platform.
"This multi-year collaborative process encompassed numerous months of in-depth technical discussions, multiple meetings and several layers of communication between executives and engineers involved in the ownership, operation and continued expansion of this world-class hydrocarbon transportation hub," said Mr. Bigger.
Originally developed in partnership with scientists at Temple University in Philadelphia, Penn., AOT is the energy industry's first crude oil pipeline technology using low-wattage electrical fields to optimize the performance of midstream pipeline systems. A current installation on a high volume commercial pipeline recently provided the Company with its first SCADA (Supervisory Control and Data Acquisition) output using a standard AOT vessel. The upcoming AOT-XL was reconfigured from the latest version of the AOT and conceptualized through QS Energy's collaboration with Temple University researchers, and the Company's supply chain and manufacturing partners.
The standard AOT design is comprised of an ASME VIII 1440 psi rated vessel, measuring approximately 7 feet long by 7 feet, six inches wide by 30 feet in height and weighing 33,000 lbs. Each unit is equipped with a 36-inch ID pressure vessel and 20-inch flanges and is rated for a flow capacity of over 6,000 bbl/hr. The new AOT-XL design will use a skid that can be designed as small as approximately 9 feet long by 9 feet wide (skid designs are customized depending on customer's choice), and is 36 feet or greater in height and weighs 52,000 lbs. (excluding structural steel). The AOT-XL design includes a 60-inch OD pressure vessel with 36-inch inlet/outlet flanges and is rated for approximately 25,000 bbl/hr. of flow per unit. The skid has been reconfigured to allow tight placement of the AOT system and provides for the substantially larger individual AOT-XL to use just slightly more floor space as the standard AOT design. As with the smaller standard AOT, any number of the AOT-XL vessels can be installed in parallel to accommodate the customers flow rate.
"We are hopeful this newly designed system will have widespread applications in a variety of high volume environments that are hindered by space constraints and limited installation infrastructure," Mr. Bigger commented. "As an example, three AOT-XL vessels will provide a flow volume capacity previously requiring upwards of 20 standard AOT's which would otherwise have carried a capital cost of approximately $20MM. In addition to the greater economic benefit to our customer through better throughput, we have reduced our installation footprint by approximately 70%. Upon determination that we are ensuring sufficient margins to protect the interests of our shareholders, we have submitted a proposal for this particular AOT-XL installation at a cost of between $4MM to $5MM."
Mr. Bigger added that a highly-detailed cost/benefit analysis of the AOT-XL system has been delivered to the customer for presentation at the next asset management meeting of their stakeholder companies for potential funding of the project. The meeting of this consortium, which jointly shares ownership of the offloading facility, is scheduled for late first quarter 2017.
If approved, the funding of a single standard-AOT installation in the coming months would provide for a "slipstream" unit, a mandatory and vital first phase. Among the provisions of this installation is that QS Energy will capture real-time measurement of viscosity and temperature values which will provide data necessary to the ongoing design process of a very complicated full-scale AOT-XL deployment across the customer's marine and land-based assets.
"Having access to operational metrics gathered by our inline sensors is critical to ensuring our technology's ability to accommodate the customer's batch processing operations and to maximize the performance of the AOT-XL moving forward," Mr. Bigger stated. "We expect to analyze the movement of close to 40 hydrocarbon products during this installation, furnishing us with insight into the AOT-XL's ability to treat crude oils with a wide range of API gravity."
"As with each of our customer engagements, our objective is to play a pivotal role in creating cleaner and greater efficiencies in the movement of crude oil within the existing infrastructure of this entity," Mr. Bigger commented. "The selection of AOT technology as having the potential to streamline their operations was based on our ability to meet the unique challenges of delivering meaningful flow improvement within the space restrictions of their assets and massive flow rates. We are hopeful and believe that this will lead to the provisioning of additional custom AOT-XL units on their off-shore terminal and sea-to-shore pipelines."
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 demonstrated 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 motivated to improving their takeaway capacity during an historic surge in upstream output resulting from enhanced oil recovery techniques, the technology now represents what we believe to be 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. (OTCQB: 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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