In January we talked about the record high United States oil production reached in 2018, with some speculation on oil production moving into 2020. Now with the first two months on 2019 almost under our belt, it is looking like the U.S. oil production shows little to no signs of slowing down and may have been underestimated…
Based on 11 months of data from 2018 we are seeing an overall increase in oil demand, 0.56 mb/d year over year. Even though the demand for jet kerosene and jet fuel dropped last year, the slack was picked up by an increase in demand from the petrochemical and industrial sectors driving into a net positive U.S. demand for the year. 2019 is expected to still show growth, however, it is expected to be less than the previous few years.
We saw January’s predictions for the U.S. at 12.1 mb/d by the end of 2019 and 12.9 mb/d by 2020, while the February predictions have already been increased to 12.4 mb/d and 13.2 mb/d respectively. This ultimately will bring great economic gains to the plays/basins situated around the U.S. as well as to the other industries supporting their growth, such as valve / flange manufacturers, new opportunities for pipe fitters to fuse a Weld neck flange and a pipe, or to the local stores who welcome the increased customer traffic and revenues. However, with such rapid industrial growth strain has been put on the local infrastructure and governing officials as they try to catch up.
Possible reasons for the underestimation of oil production in the U.S. may be due to the lowering cost of technology paired with greater operational efficiency than expected, but with such a complex beast it is hard to pinpoint any one explanation. With so many changes so quickly in the industry, it can be hard to accurately predict U.S. oil growth, but the EIA has consistently been updating forecast models and KPI’s (Key Performance Indicators) to close the gap between what is predicted and reality.
As new data presents itself, be on the lookout for a potential up/downticks in U.S. production/demand but currently, it looks like we are in a positive trajectory and will keep ramping up production for the foreseeable future. Globally speaking, this could have a long-term negative effect on the price per barrel. OPEC and Russia are working together to stabilize supply/demand by reducing production for the first 6 months of 2019 by approximately 1.2 mb/d collectively. This action has helped stabilize the price per barrel for now, but if the United States fills the vacuum left over and/or destabilizes the supply and demand of the industry we could be in for a rude awakening.
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In this day and age, we use metals in nearly every aspect of our lives, and it is hard to imagine a time without their impact on our society. We use them for anything from industrial piping and flanges, general manufacturing, electrical components, all the way down to our use of sodium in our food. (YES, SODIUM Chloride = Salt, contains a soft, silvery White metal called Sodium.) It can be an odd feeling when you realize metals have impregnated themselves in almost every part of our lives.
So where did all these different metals come from? What are they ultimately made from? Simply put, all elements (Not just metals) came from the complex processes that make up the life cycle of a star, and ultimately, they are nothing but a conglomerate of general atomic materials: Electrons, Neutrons and Protons. Elements are distinguishable by the number of protons they contain, While the number of electrons and neutrons can vary for samples of the same element. For example, Iron or FE (used in the creation of carbon steel or stainless steel for pipe Flanges) is the 4th most common element on the Earth and regardless of the number of electrons or neutrons it will always have 26 protons. As far as where they came from?
Billions of years ago when the Universe was in its infancy, the first clouds of helium and hydrogen atoms Condensed until their own gravity proved too much causing them to implode, forming the first stars. During the birth and life of all stars, they reach temperatures hot enough to break down atoms into their base atomic materials and fuse them into different atoms that are heavier and larger. Starting with Hydrogen we go to Helium, then Lithium, then Carbon and so on... As stars reach the end of their life they catastrophically explode, leading to a supernova, spewing the heavier elements that have been formed into the universe.
In Earth's case, when our sun was in the process of forming, most of the hydrogen and helium went into our sun’s creation while the rest of the dust and gaseous material formed a spinning molten mass around the new star. Eventually the mass cooled and coagulated into the planets and other features of our solar system, including all the metals we process and use on this planet!
With this new Perspective it is hard not to be amazed by even the simplest things in our World. Everything from Industrial Flanges to the Salt we put in our food, to even our own bodies are made from the Stars and are truly unique.
"The nitrogen in our DNA, the calcium in our teeth, the iron in our blood, the carbon in our apple pies were made in the interiors of collapsing stars. We are made of starstuff."
― Carl Sagan, Cosmos
Near the End of 2018 United States Oil and Natural Gas Production reached a record High, 11.54 million barrels per day, not seen since the 70’s and doesn’t appear to show signs of decline moving towards 2020. Estimated Oil Production for 2019 is speculated to be averaging 12.1 Million barrels per day with 2020 currently estimated to be at 12.9 million barrels per day on average. By 2020 it is expected that the United States will be exporting far more Crude oil and Fuel than it imports.
What does this mean for the Industry?
With New highs in US Oil production, we are already seeing some pipelines at capacity and will need to be expanded upon or have additional lines created to sustain increasing production levels. More pipe = More flanges and other items for the PVF Industry!
Here at Texas Flange we offer almost any configuration imaginable, whether it is a Blind flange , Threaded flange , Weld Neck , Slip On , Socket weld , Orifice Set or any other Custom Flanges you may need with Multiple Material grades available to choose from. If there is something you can't find online please contact our sales department!
For Febuarys Edition Click Here!
OPEC Monthly Oil Market Report - https://www.opec.org/opec_web/en/publications/338.htm
1942-2012 – Jerry Fuller - Founder Texas Flange
Jerry Fuller was the founder of Texas Flange. He was hired right out of High School into a company that specialized in cathodic protection and from there moved into the PVF Market with his job at Taylor Forge. In between Taylor Forge and the inception of Texas Flange, Jerry always worked to grow and learn more rather than being content with where he was.
Once, during an interview, he was asked if he could understand the Taylor Forge price sheet. He laughed and said, “I ought to, I wrote it!”
After the Market Dip in 1985, Jerry founded Texas Flange and then, with his knowledge of flanges and the flange industry, put Texas Flange on the international radar within a few short years. He never stopped learning about the various flanges and the alloys that flanges are made from and always kept Texas Flange at the forefront of the industry both domestically and abroad.
We have sold flanges to customers all over the world and have come a long way since the “Stone Age” of flange technology. We offer multiple resources online to confirm flange configurations, flange weights, even Flange Dimensions. We have the Texas Flange Flange Catalog, Flange CAD drawings, and even information about foreign vs domestic flanges.
If you can't find the information you want about flanges, don't hesitate to call us here at Texas Flange. We are experts when it comes to flanges after all!
For sales info please email:
Local : 281-484-8325
Toll Free: 1-800-826-3801
Advantages of Galvanization
Texas Flange is proud to offer a full range of galvanized flanges for our customers. We stock a line of hot dip zinc galvanized flanges to ASTM A123 and ASTM A153, and we can provide many custom items with this protective coating as well. Here are a few noticeable advantages to this process:
Protection from elements - galvanized flanges are superior to exposure to the elements versus painted carbon steel and offer longer life cycles in many cases as well, due to their resistance to corrosion from rain and other naturally occurring weather/climate issues.
Physical durability - you will often have more use and shelf life from galvanized flanges in comparison to uncoated carbon steel and ductile iron, due to the metallurgical bond present between the zinc coat and the actual steel. This provides excellent protection from physical damage to the flange in question.
Limited base exposure - a zinc hot dip coating on flanges and steel components per ASTM standards is superior to regular plating, which may leave exposure for crevices, machined surfaces, and some difficult to reach portions of the flange in question. The process provides noticeably more zinc coating than regular plating.
Affordability – commodity hot dip galvanized flanges can provide a good alternative to stainless and chrome alloys from a cost benefit perspective, depending on your specific application. If the superior chemical requirements of certain jobs do not apply, they are an excellent alternative to standard carbon steel flanges.