Hydrogen Sulfide (H2S) is a highly corrosive chemical that is found in Crude Oil and Natural Gas. The presence of H2S in crude oil and gas industry plays a significant health risk for those close to or exposed to this noxious substance and can dramatically degrade the value of the barrel of crude oil. Crude oil traders need to pay particular attention that this commercial specification has been met and the necessary steps have been taken in the field or at the port to ensure treatment has been performed. Often times, H2S must be treated chemically to midstream and refining assets as H2S can have damaging effects to pipeline infrastructure . Removing H2S ultimately leads to higher quality barrels that can be sold in diversified markets for a premium netback price.
Oilfield chemical companies must inject H2S removal products to their crude oil and gas for several reasons which are outlined below:
Benefits of H2S Removal for the Oil and Gas Industry
Removing H2S creates a much safer environment for workers that face exposure risk; inhalation of H2S can lead to death and mitigation is crucial. Also, when removing H2S, the value of oil barrels increases and opens doors to broader markets.
Here we highlight the benefits of H2S removal for crude oil traders:
1. It avoids H2S Exposure
Exposure to Hydrogen Sulfide is a major concern, the gas is highly toxic if inhaled leading to numerous health problems and, in some cases, even death. H2S is highly flammable, and may result in an explosion if concentrated quantities are present.
Oil and Gas companies are required to follow H2S removal regulations and exposure limits. When H2S is treated, it facilitates companies in them meeting their Environmental, Social and Governance goals. Moreover, removing H2S means that you are effectively doing your part in protecting the lives of your workers and the environment.
2. It Protects Your Assets and Property
One of the most significant benefits of removing hydrogen sulfide early in the process by using an H2S Scavenger is that your machinery, equipment, pipeline, and property remain protected. When H2S is commingled in crude oil or natural gas, it is naturally corrosive creating pinhole pits in carbon steel which can lead to cracks and fissures, ultimately decreasing asset lifespan. This can lead to unplanned and unbudgeted increases to overhead costs in parts and equipment replacement. We’ve seen producers and midstream companies spend an additional 20% in operational upkeep to replace damaged or degraded equipment due to H2S corrosion.
When the right H2S removal product is used, such as our ProSeries® Scavengers, assets’ lifespan is extended.
Besides this, H2S can also pose danger to your property. Since it is highly flammable, higher concentrations could lead to explosions.
3. It Increases the Value of Your Barrel
Barrels that have moderate to high levels of H2S are typically challenged economically from the start. First, as we’ve mentioned, from a safety standpoint – more oversight, training, CAPEX & OPEX, and effort goes into protecting the people and assets involved. Next, the untreated barrel will likely get rejected commercially and will not move via pipeline, forcing it to move on truck which can add a significant cost to the already transportation to market costs.
Ultimately, high quality crude oil barrels can make it to premium markets. By turning a high H2S sour barrel into a sweet barrel, the value of the barrel is enhanced and allows traders to maximize their bottom line.
Conclusion
H2S removal products should be employed by crude oil companies in order to benefit from less fouling, corrosion and property damage, significant reduction of health risks, and potential increase in the value of their barrels.
Q2 Technologies manufactures specialty H2S Scavenger products that remove H2S from millions of barrels of oil every month. For more information, visit our website today!
