Installation Cost Killers

Installation Cost Killers

How to solve the high cost of retrofitting oil tanks?

Everyone wants more efficient tanks, and everyone knows that liquid level instrumentation will improve efficiency.  But retrofitting old tanks makes owners hesitate, in spite of the benefits instrumentation gives.

One of the biggest challenges oil tank owners face when looking at a retrofit of their oil tanks is the huge installation costs.  The cost of running power, wires, SCADA and communication to and from their remote oil fields can run 6-figures per site.  This is an overwhelming hurdle for a retrofit, and can make any play for efficiency run dry before the project starts.

Does retrofitting oil tanks make sense if the site is a stripper well, or low-producing? Stripper wells make up about 11% of the US oil output; roughly 400,000 wells each producing 5 bbls or less daily. That’s a lot of well sites! An oil company in Wyoming has over 100 low-producing wells for which they pay a contracted pumper to manage each well $400 a month, or $40,000. Managing these wells includes visiting the location, strapping the tank levels, fixing broken or breaking mechanical items, and other miscellaneous management. Retrofitting wells not only provides real-time data for more efficient decisions, but also reduces the need for as much involvement from pumpers, saving the producer money. In a day of wildly fluctuating oil prices retrofitting oil wells may be the best way to improve efficiency, save management cost, prevent shut-ins, and optimize water and oil hauling schedules.

Enter Kodiak Instruments wireless solution: we observed the problems of power, communication and price, and created a new product.  The Dual-Liquid Level Sensor gives a simple solution to a formerly complex problem.  We combined our patented contactless Magnetopot linear potentiometer together with customized wireless and battery-operated communication to produce a world-class solution, that can last over up to 5-10 years without replacing the battery.

This solution doesn’t cost 6-figures, in fact, it can cost less than 10% of the cost of traditional sensing and traditional wiring.  The install takes 30 minutes, and the wireless transmissions begin immediately giving the Dual-Liquid Level.  Simple, inexpensive, made for the retrofit oil tanks.

By Daniel Marriott


Write a Comment