The Challenge

The downturn in hydrocarbon-energy prices that began in 2014 put added pressure on oil and gas companies to minimize their operating costs. More than ever, decisions regarding CAPEX and OPEX could mean the difference between staying in and going out of business. This economic climate led an operator working in the Permian Basin to seek the most cost-effective pipeline installation in the industry. The application called for a 7-mile, 8-inch gas production line to be installed in a very remote area of the Permian Basin in Texas. 

The Solution

For the company’s application, FlexSteel recommended using its 8-inch, 1500 psi (100 bar) line pipe. The pipe’s design would reduce installation complexities, maximizing pipeline construction safety and efficiency. To further increase project cost-effectiveness, FlexSteel set up a job service center in nearby Pecos, Texas. By operating from this location, FlexSteel could immediately respond to project work and supply requests. Providing this level of support would enable the company to minimize project costs. 

The Result

FlexSteel completed the installation of the company’s 7.55-mi gas production pipeline 28 days faster than if the operator had elected to install a conventional steel pipeline. Beyond the reduced installation time, the company realized further cost savings by selecting a line pipe that was installed by a crew one-eighth the size of that needed for a steel line. FlexSteel pipelines also required fewer tie-ins, which made installations safer and more efficient. When compared with the cost of constructing an 8-inch steel pipeline in the same area, installing FlexSteel pipe reduced the company’s CAPEX on the project by 24%.