HYDROCARBON ENGINEERING Article: Full EPC Solution Helps Economics

The world is feeling the effects of low commodity prices with respect to oil and natural gas. For those that depend on these commodities to run their business, it is obviously a very tough and trying time. Current crude pricing in the US is trending toward US$30/bbl, with natural gas prices consistently staying below US$3/dth. In this environment, oil and gas companies have had to find ways to survive and to keep projects economical. As there are limited actions that can be taken to increase project income relative to commodity price, the most obvious way to increase the potential economic viability of a project is to reduce capital expenditures and ongoing operational expenses. Cost reduction measures can be applied in drilling/lifting, gathering or processing of gas associated with crude production. There are several ways to reduce the costs associated with gas processing; however, one way to enjoy immediate cost reductions is to utilize a full engineering, procurement and construction (EPC) contractor for the design and installation of processing facilities, whether it be a simple compressor station or a full cryogenic processing plant.