Retired Shell Oil Co. President John Hofmeister took leadership at the highest levels in the United States to task and offered solutions to improve the current inadequacy at the fall PVF Roundtable meeting held at the Houston Engineering and Scientific Society Club in late October.

“CEO tenure is shrinking. We have enormous disrespect for elected officials across the country because we’re holding them accountable and they don’t want to be held accountable,” Hofmeister said in a video interview with Supply House Times at the conclusion of the meeting (watch the video at www.youtube.com/SupplyHouseTimesMag).

Enlarge this picture PVF Roundtable master of ceremonies Danny Westbrook (Westbrook Mfg.) addresses the crowd at the fall PVF Roundtable meeting at H.E.S.S. Club in Houston.

“We have some really great leaders in different parts of society, but there just aren’t enough. When we see leaders of firms willing to take other peoples’ money and spend it like their own or when we see other leaders not providing the kind of stability, continuity and respect for people and society, and worrying only about profits and their paycheck, there is something wrong with that. When you have government leaders who only worry about the next election and manage their whole agenda for the next election instead of for the American people, there is something deadly wrong with that.”

Hofmeister, who has a new book in the works titled “The Coherent Leader,” said today’s leadership model needs updating. “The 21st century is very different than the 20th century whether it’s corporate, government or institutional leadership or institutions such as universities and churches,” he explained. “There is an inadequate leadership model guiding our leaders today where they are not up to task. In this day and age we need leaders who think about the long term, medium term and short term simultaneously and I think we are falling short. Rather than just complain about leaders, how about offering them a leadership alternative—a model for the 21st century with all the complexities and degrees of difficulty we face in this century that are different than the last century.”

Enlarge this picture Industry legend Morris Beschloss was among the speakers at the fall PVF Roundtable meeting in Houston.

Hofmeister, now president and CEO of Citizens for Affordable Energy, offered a seven-point leadership development plan that emphasizes:

1. Values and behaviors. “Leadership starts at every level with values and behaviors. It always has and always will. When you have disconnects, you have problems.”

2. Understanding context. “It’s critical to be aware of not only what is at the center, but what is happening on the fringes.”

3. Balancing the emotional, spiritual and mental components of life at the top.

4. Cognitive capacity. “A leader can be smart and intelligent and well-read, but go beyond that and think in parallel terms, incorporate values and behaviors and make decisions.”

5. Time span of horizon. “Balance the short term, medium term and long term and develop a track record of accomplishment. When the president can’t deal with the legislature, things can’t get done. Leaders of corporations who can’t get things done can’t stay on the job.”

6. Relationship orientation. “People matter.”

Enlarge this picture The fall PVF Roundtable meeting drew another capacity crowd to H.E.S.S. Club in Houston. Pictured is the meeting’s popular networking session that occurs prior to dinner and the guest speaker program.

Those six points led into Hofmeister’s seventh and most important area of emphasis—the flow. “Ultimately it’s much like what an athlete experiences,” he said. “The flow is the incredible feeling an athlete has at the peak of (his/her) ability to keep going and going like the Eveready bunny. A leader has to have that kind of stamina and kind of outlook. All those points combined are synchronized and integrated. The coherent leader shares in all those capabilities.”

Prior to getting into the meat of his keynote speech on leadership, Hofmeister expressed concern over aging fuel infrastructure in the wake of the damage Hurricane Sandy caused on the East Coast.

“There is a significant amount of refined product that goes to New England and the mid-Atlantic area that comes from outside the country,” he said. “While the population of the mid-Atlantic and New England has more than doubled the last 50 years, no new refineries have been built. We have twice the population now living off that older infrastructure.”

The fall PVF Roundtable meeting again drew a packed house to H.E.S.S. Club. New PVF Roundtable members include Lenco, Chevron, UPC Interpipe, Viar Piping and National Specialty Alloys.

The first PVF Roundtable of 2013 will be held Tuesday, Feb. 19 in Houston. For more on PVF Roundtable, visit www.pvf.org.

A smart wireless gateway is strategically positioned on a control room roof. BY KURTIS JENSEN

The economics and simplicity of wireless field instruments has allowed many industrial plants to expand the benefits of automation well beyond traditional “wired” control.

Wireless technology has created monitoring applications for safety, reliability, maintenance, environmental compliance and increased personnel efficiency that are possible without incurring the traditional cost and time barriers imposed by wires. Globally, plants are replacing manual clipboard rounds, automating periodic inspections and monitoring more assets than ever before because of these new applications. But what is the status of wireless control of valves in particular?

THE CASE TO AUTOMATE

Engineers know there are advantages and consequences to every design decision. To understand the benefits of wireless for control of valves, a fresh look at the two basic types of control is needed: closed loop control and open loop control.

Traditionally, in a distributed control system (DCS) or programmable logic controller (PLC), closed loop control implies wired signal inputs applied to logic or a Proportional-Integral-Derivative (PID) algorithm to drive a signal output to a final control element—most often a valve. Traditional technologies include pneumatic, analog wired or bus wired. If the decision to automate was left to the process engineer, every valve would be automated. However, the cost of wired installations ultimately means that over 60% of valves remain manual—primarily on/off quarter-turn valves.

When financial analysis indicates a project’s cost is too high, an engineer’s fallback option is to select open loop control, where no automated feedback from the valve is used. This operating tactic is primarily made to get the control signal to the valve, and if something does not happen when it should, a human must determine if the desired change took effect. Automation budgets can focus on the throttling control valves and the on/off valves that are either part of a safety shutdown system, that operate very frequently or that are too big to be manually actuated. The rest are left to manual operation.

People are the most important asset of any business, and people are affected by the consequences of open loop control. This is especially true in older plants trying to compete with newer plants or plants built with lower costs for labor and fewer governmental regulations for safety and the environment. When interrupted, distracted people make mistakes, take time to get to valves and become susceptible to plant hazards. Imagine the impact to process efficiency if the benefits of closed loop control could be obtained without the cost of wiring infrastructure. Imagine the advantage of reducing valve alignment time from hours to seconds, preventing human error that results in environmental spills or lost batches with associated cleanup costs, and minimizing worker exposure to ladders and chemicals that impact safety initiatives and productivity. These are possibilities with wireless technologies.

ALTERNATIVE TO SOLENOIDS AND HANDLES

The traditional method for closed loop control with an on/off valve is to use a solenoid and two limit switches. From an automation perspective, this can be more expensive than a throttling control valve because the process requires one discrete output and two discrete inputs into the DCS.

The input/output (I/O) points, wires, engineering, materials, labor, project management and time costs are considered during the project planning phase; with just a solenoid or manual valve containing a handle, the costs are lower. A solenoid with no feedback leaves a process susceptible to operation with a stuck valve, and a handle creates the opportunity for human error. Wireless control eliminates both of these weaknesses of open loop control for valves in such a way that the loop can be closed on a budget. With a wireless device, the added costs of sending back the valve’s position are included with the instrument, making it easier to automate more valves in the project planning phase.

MAINTAINING ESSENTIAL WORK PRACTICES

Emerging wireless controllers for valve automation essentially combine solenoid functionality with limit switch feedback into an integrated package that has all the benefits of digital communication and diagnostics, but is also powered by a battery. The result is that only a pneumatic source is needed to automate that valve. This capability maintains essential work practices while eliminating the barriers that result in just 1-2% of existing manual valves being automated annually. Here’s how:

Figure 1. Manual valve

Figure 2. Typical valve automation package

Figure 3. Wireless valve automation package

Design Selection

A wireless controller is an alternative to a solenoid or digital bus-based controllers that still require wires. The wireless controller uses the same pneumatic actuator and valve. The selection criteria for choosing the valve and the actuator remain the same (Figures 1 and 2).

Application Selection

A wireless automated on/off valve is the ideal replacement for a valve currently actuated by a worker. The wireless controller eliminates the potential for human error and allows work practices to be automated into interlocks and safety checks. A wireless controller is an alternative to solenoids for applications that are not part of a critical safety shutdown system. It’s also faster than those humans (Figure 3).

Control System Integration

The simplicity of wireless control ensures that a digital set point for open and close can be sent from the DCS or PLC and can receive position feedback from that same field instrument. A wireless controller is connected to a wireless network in an arrangement similar to traditionally wired I/O; however, the set point and position feedback are wireless—another type of I/O that can be integrated into interlocks, timing sequences and logic just like the wired alternatives.

Operation

A wireless automated valve is operated the same way as a solenoid and limit switches. When the right logic conditions exist or action is executed from the control system, the valve moves and reports back the position to the control system for confirmation of the change. If the valve does not move because of mechanical failure, the operator receives an alert that can be diagnosed remotely by looking at the valve position or investigated more closely using remote access to diagnostics of the valve assembly. For typical applications, a battery-powered valve should have the same life as a wired alternative in terms of valve cycle life and years.

Budget Approval

When estimating budgets using wireless automated valves, the material cost of wires, cabling infrastructure, junction boxes, engineering time and cost for connecting to the control system, labor time and cost for electrical installation can be eliminated, and the reduction in time spent managing these resources and schedule should be considered. Removing these barriers to project approval and adding the benefits of reducing consequences of human error and exposure to hazardous environments can ensure project approval.

WIRELESS FOR AUTOMATED CONTROLS

Engineers can deploy wireless automated valves to increase the effectiveness of their controls and decrease costs caused from mistakes and reworks. They can achieve a competitive edge by increasing the production levels of their facilities and reducing delays of waiting on labor to either make a change or fix the product. The result is better throughput, reliability and quality.

Engineers should look for solutions that are multivendor and can be used globally. They should look at the tools needed to use these solutions. For example, they should determine whether they can use the same handheld configuration device for both wired and wireless instruments. From a wireless perspective, the network should be able to mitigate obstacles in the process environment, provide redundant paths for reliable communications and coexist with other wireless communication sources. If a wireless engineer is needed to perform a site survey and implement the wireless network, alternative wireless technologies should be considered.

THE TAKE AWAY

Wireless has been used for years for monitoring applications to extend the benefits of automation beyond process control. The technology has proven itself, and on/off automation can eliminate traditional cost and engineering barriers. Whether it is for a fill, feed, flush, bypass or other type of valve application, wireless automation can improve process efficiency, reduce costly mistakes, and improve worker safety and productivity. As wireless continues to prove its worth through closing open loops for off valves, look for other wireless closed-loop alternatives in the future.

KURTIS JENSEN is an instruments product manager at Emerson Process Management, representing Fisher and Valve Automation Products. His responsibilities include control accessories and related field instrumentation. Reach Jensen at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

By ANETA STEPHENS

Understanding the “whys” of a culture enriches the experience of traveling to different countries and can greatly improve the chances travelers have to be successful in business transactions.

Knowing the proper way to handle a business card when it’s offered in another country is a useful tool; but learning the culture of a country with which you do business goes ways beyond such mannerisms. Travelers to other countries, especially to countries with very different cultural bases, need to learn more than the socially accepted etiquette or how to avoid embarrassment.

They need to learn and understand the thinking that underpins a society’s accepted behavioral norms because this understanding can affect the entire approach to doing business in another country and can be instrumental in guiding business strategies for that country.

A plant tour in Suzhou ChinaMORE THAN A MANUAL

A naïve rehearsal of codes of behavior learned from a manual or memorizing a series of perfunctory mannerisms may get a traveler through an isolated business meeting or negotiation. However, many missed opportunities arise for those who do not learn the motivations, values, ethics and beliefs that underlie the customs.

While the world is constantly becoming more integrated through better communication and travel that links countries once far apart in customs and thinking, such links are only superficial. This greater shared understanding may have increased tolerance of differences, but it has not erased the differences. In particular, the new world of better understanding has not substantially changed the underlying culturally influenced beliefs and values that determine how an individual, a company and that company’s message are received. Indeed, even the degree of sensitivity each culture has for other cultures differs from place to place—merely talking about such differences in insensitive ways can be received with varying levels of approval.

LEARN THE CULTURE

Given that the scope of this article is limited by length, we can’t hope to cover the globe—much of what needs to be done must be done by individuals going to specific areas. The relevant background information needed is very detailed and unique to each country, and often to sub-regions or social status of the individual parties. Numerous examples of cultural idiosyncrasies can be found on the Internet, in travel literature and within manuals put together to teach about different cultures.

Some generality does exist, however. For example, gestures involving the fingers are best avoided everywhere, because they are particularly susceptible to a broad variety of undesirable interpretations. Also, although this does not apply to all cultures, doing things with the right hand (as opposed to the left) is a good default to use. Shaking hands is now common practice in most of the world, but it wasn’t always so and still can be subject to gender differences in some areas. Visitors also should be aware that other than that handshake, it is preferable not to touch another person until learning the given culture and circumstances where touching is appropriate.

Generalities also exist within regions. An example is the business card mentioned at the beginning of this article. When meeting people from China or Japan, travelers should know that cards (and most things that are being passed from one person to another) are given and received with both hands, and attention to the card itself is a sign of respect. A business card should be looked at, then placed in a business card case/holder, rather than stuffed in a pocket.

Another example is forms of address. Various forms of addressing someone verbally or in writing are acceptable. In some areas, the preference is first name while in others it might be last name. There are also differences in appropriate clothing, tipping, dining, smoking, eating, personal space, religion, time and punctuality, among many considerations.

Cultural expectations also can vary greatly from one country to the next. For example, gifts are expected in some countries, while in others they are seen as “bribes” to be avoided among strangers. Given the potential for misunderstanding, gift giving requires thorough research. Also, in the past decade, the world’s international organizations have moved dramatically to establish strong policies in favor of transparency and against corruption and bribery.1

RESPECT

While it is tempting to use the universal practice of simply showing respect, this presupposes that what passes for respect in one culture will also appear respectful in others.

One universally accepted way to demonstrate respect, however, is by learning a few basic phrases of the language, while ensuring that pronunciation is good enough not to alter the meaning, and learning how to address someone. The basics of language should suffice for most situations, such as greetings (when to use hello rather than good day), please, thank you, you are welcome, good bye, it was nice to meet you, etc. But pronouncing guests’ or hosts’ names correctly in their native language is a minimum standard for all visits.

For North American visitors to other countries, it is worth repeating often that addressing others is different in virtually every country outside of North America. While we tend to be informal here, in most places, the habit of calling people by their titles or by their last names (complete with Mr., Mrs., Ms., etc.) is much more common. As well intentioned as it may be to address a contact in Europe by his or her first name to invoke a feeling of familiarity and friendliness, visitors there ought to resist the natural temptation. The notable exception is in dealing with colleagues or others who already know the person very well. However, the important distinction to learn is this: there are situations, times, and places when it is strictly necessary to use a formal address even for people otherwise acquainted on a first-name basis.

Abu Dhabi International Petroleum Exhibition and Conference, Abu Dhabi, United Arab EmiratesUNDERSTANDING

Lack of ability to convey meaning precisely goes beyond the sometimes humorous situations that occur—it is considered impolite in some cultures to ask for reiteration or explanation, which leads to some sticky situations.

An example would be a situation where a business partner from a foreign country asks a host (no matter how politely phrased): “…did you understand what I said?” The answer might well be “yes” even after the guest tries to follow up with due diligence by stating: “…and will you do what we agreed upon and by the time we agreed upon?” Again, very politely and without any sign of doubt, the answer might be “yes” to show respect. The final outcome, however, may well be that the requisite understanding was not present, and consequently the desired result is not obtained.

This is one situation where it is best to bring in a speaker of the local language who is thoroughly familiar with local customs. He or she could clearly convey back to the visitor both the meaning of the conversation and the intent of what is to take place.

Equally important is how official translations are handled: They need to be made only by highly qualified translator firms. It is also worthy to note that in some areas of the world (China, for example), the contract you are intent on translating may need to be handled by a government-sanctioned entity to be valid and legal, and to meet local ­standards.

WHEN IN ROME ... OR CHINA

An important consideration when hosting people of a different culture is to ensure they understand what they are getting into when the host tries to give the guest a valid foreign experience. Those guests might also try to understand beforehand what is to come.

For example, Chinese hosts often try to make the visits of European or North American people more interesting and pleasurable by taking them to venues where genuine Chinese food is served. These hosts, however, should not be shy about explaining the food, including specifics about the presentation. Serving pork sections with a generous layer of fat and skin with pig-hair still attached may be received with enthusiasm by people naturally interested in other cultures and willing to try different things. But many visitors prefer food more like what they order at a Chinese restaurant in their home country. In such situations, both the hosts and visitors may need to venture outside their comfort zones or at least openly discuss expectations and options available.

Another cultural difference when it comes to dining is who is expected or even allowed to pay for a meal. This issue is subject to local customs that vary from country to country, as does the proper manner and amount of money to give as a tip in a restaurant, hotel and elsewhere.

One particular incident in which dining habits showed cultural differences involved a visit by a business group from Europe to China. The visitors believed they were quite obliging as they ate from a Hot Pot (a large pot served at the table from which all diners extract chunks with their chop sticks). In Europe, people generally eat only from their own dishes so they felt they were being accommodating by sharing in the communal dining. However, it became somewhat awkward when the Europeans proceeded to use their spoons to consume the liquid as well as the meat portions from the shared container. In general, only the meat is shared.

Such incidents can be made into a mutual learning experience for both visitors and hosts if the hosts offer to guide their guests through the meal etiquette associated with each course. On the other hand, the European visitors also could have studied up on various food customs in China ahead of time or even asked on the spot what was the right way to partake of the dish.

MORE SIMPLE DIFFERENCES

Taking photographs of people, unless you work for National Geographic, is often not a good idea without understanding what you’re doing. An example was a recent visit to rural China where toddlers were running around without clothes or diapers. The problem was that because they had no diapers, certain parts of their anatomy were not covered. The visitors proceeded to take photographs of the cute children so they could share their cultural experience with friends and family back home. However, their action was greeted with evident disapproval by the locals, who removed their children from sight.

A good rule of thumb in this case, as in many cases, is to err on the side of humility, caution, politeness and discreetness. A visitor can still end up doing something wrong, but may get credit for having good intentions.

As previously discussed, understanding the reasons behind a practice (what the culture is and how it came to be) can benefit beyond merely avoiding a faux pas. Breaking down cultural barriers can enable collaboration, sharing of ideas and conducting commercial business with companies, organizations and people outside your local markets. Sharing a relaxing tea time with hosts before commencing business negotiations, for example, is not done for ceremonial reasons. It is intended to give both parties time to get to know each other and to establish a relationship that will set the framework for the eventual business transaction.

Aneta Stephens is director of Global Marketing Communications for CRANE ChemPharma Flow Solutions & CRANE Energy Flow Solutions. She is a member of VMA’s Communications Committee. Reach her at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

¹Useful links on this topic are: The Foreign Corrupt Practices Act (FCPA), http://www.justice.gov/criminal/fraud/fcpa/; Organization of American States (OAS), www.oas.org; Organisation for ­Economic Co-operation and Development (OECD), www.oecd.org; The European Union and the ­Council of Europe, www.coe.int, United Nations, www.un.org.

Lubrizol Corp.'s CPVC business is introducing its new specification and educational tools at the American Society of Plumbing Engineers (ASPE) 2012 Convention and Exposition in Charlotte, N.C. Included in the new offerings are four ASPE-accredited continuing education (CEU) courses, as well as Building Information Modeling (BIM) objects to help engineers specify Lubrizol's industry-leading FlowGuard Gold and Corzan CPVC piping systems.

"The ASPE show is a perfect forum for us to reaffirm our commitment to helping plumbing engineers specify products that improve cost efficiencies and sustainability," said Domenic DeCaria, Lubrizol market development manager.

The world's first hybrid solar-geothermal power plant is the Stillwater project in Fallon, NV. The plant was a result of tax support under the American Recovery and Reinvestment Act of 2009. PHOTO: Enel Green Power North AmericaThe method of pulling power from the ground’s heat is receiving renewed attention because of new technologies as well as efforts by DOE and other parties to promote this clean, abundant source of energy.

The nation’s politicians and many of its citizens are pushing for more use of renewable sources of energy not only because of environmental issues but to lessen dependence on foreign oil. However, both wind and solar present a problem in that the technology that exists today cannot provide sufficient power for baseload electricity. A third source—geothermal—holds promise, and even though it is not a new source of energy, new types of plant technologies are making this type of renewable even more attractive.

Geothermal energy is actually very efficient compared to other renewables, according to Tim Reinhardt, technology development manager in charge of low-temperature geothermal projects at the Department of Energy (DOE). It can operate 24 hours a day under virtually any conditions, and its capacity factor (the ratio of the actual output of a power plant over a period of time compared to what it could put out operating at full capacity during the entire time) is equal to nuclear and coal-fired plants.

“We’re [DOE] working with the energy industry to make this power competitive for baseload electricity,” he says.

AN UPDATE ON THE INDUSTRY

Today, three kinds of geothermal power plant technologies are used to convert hydrothermal fluids to electricity: dry steam, flash and binary cycle. Which type is used is dependent on the temperature of the geothermal site.

Early geothermal power plants were dry steam plants, which use the steam from geothermal reservoirs as it comes out of wells. This steam is routed directly through turbine/generator units to produce electricity.

More common today are flash steam plants, which use water at temperatures greater than 360° F (182° C) but below 400° F (204° C) that is pumped under high pressure to the generator equipment at the surface. The pressure is allowed to reduce and the water flashes to steam, which is then put directly through a turbine.

The third type of technology is the binary cycle plant, in which the water or steam from the geothermal reservoir never comes in contact with a turbine or generator units. Instead, the technology heats a working fluid that runs the turbine. (This third type of plant is DOE’s Tim Reinhardt’s specialization.)

CHALLENGES FOR GEOTHERMAL

While geothermal energy production holds much promise, it also presents challenges. John W. Pritchett, board member of the Geothermal Energy Association and co-chair of that association’s Science and Technical Committee, shares what he considers some of the most difficult.

First is getting financing for new projects. “The geothermal project developer will obtain no revenue until the wellfield is drilled, the power plant is constructed, a power-purchase agreement has been negotiated with the public utility company, and transmission facilities have been arranged,” he explains.

Meanwhile, “The upfront capital costs of a geothermal project are formidable,” he adds. By comparison, “Financing for natural-gas or coal-fired power plants would be far more challenging if the project developer were required to purchase the entire fuel supply for the project’s lifetime prior to selling any electricity,” he explains.

A second major challenge is locating a suitable underground geothermal resource and obtaining permission to develop it, Pritchett continues. Suitable locations are not plentiful and tend to be located mainly in the western U.S. and in areas that are generally away from population centers, and much of the land is tied up in government ownership.

Also, “Prospecting techniques for geothermal resources are in a relatively primitive state of development and are comparable in effectiveness to those that were in use for oil and gas exploration in the very early part of the 20th century,” he adds.

The geological anomalies of the western U.S. make it possible to have large megawatt geothermal power facilities in Nevada and California, Reinhardt says.

However, DOE has not limited its efforts to that area.

“We [DOE] explore resources spread across the entire U.S., including traditional hydrothermal and low-temperature resources that are outside or below the normal temperatures used to harvest electricity,” he says. They are also working with co-produced resources in locations that have oil and gas production such as the Dakotas, along the Gulf Coast, even Arkansas.

However, these locations are isolated, and isolation creates problems in several ways. According to Pritchett, while geothermal electricity must be generated by surface facilities located above the underlying geothermal resources, these facilities are often situated substantial distances from load centers. A natural-gas plant, on the other hand, can be located almost anywhere (even within the city it serves), though some party still has to install or expand the size of piping. Because of the isolation, geothermal projects ordinarily will require electrical transmission facilities to bring the power to market. Many promising geothermal areas presently lack such means of transmission, he notes.

Another great challenge is technological support and lack of infrastructure, Pritchett says.

“Most geothermal development companies are fairly small, thinly capitalized, and severely stressed financially by the high upfront capital requirements of geothermal projects. Their ability to directly support technical research and development activities is very limited,” he says.

In the past, the industry has relied on the government to fill this role, mainly DOE and the U.S. Geological Survey, but government support has been relatively small, highly intermittent and unreliable, particularly in recent years, he adds.

THE TECHNOLOGY

The geothermal industry has had some exciting advances in technology, ­Pritchett says.

For example, “Substantial progress has been made in recent years in geothermal exploration technology, and many new resources have been discovered and are now awaiting exploitation,” he says. Also, the development of new thermodynamic cycles for geothermal power plants has lowered the permissible threshold resource temperature for efficient power generation, in effect increasing the exploitable national geothermal resource base.

Meanwhile, “New and more powerful techniques for resource modeling and performance forecasting are reducing wastage and lowering the cost of geothermal electricity,” he says.

Finally, the combination of geothermal generation with other energy technologies is making projects more profitable. This includes cogeneration, which combines oil and gas production with geothermal electricity generation using the coproduced hot water and steam from oil/gas wells, and hybrids with other renewables such as the new ENEL Stillwater geothermal/solar ­project in Nevada, he says.

IN THE FIELD

Some exciting developments have also occurred in the field in the last few years, according to Reinhardt.

For example, DOE is working with Pacific Northwest National Lab on developing better working fluids.

“They’re adding nanoparticles of metal organic heat carriers to the working fluid. The idea is to make the working fluid more heat efficient,” he explains.

Reinhardt says these metallic particles will not create challenges for ­components such as valves that would process the fluid because “that fluid is contained within the closed circuit of the binary power plant, powering the turbine. It poses no special challenges to the process equipment.”

Another project that holds great promise is in Nevada where “ElectraTherm has its green machine, which uses twin screw expanders as opposed to a traditional turbine to create the ­electricity,” says Reinhardt.

With more than 3,100 MW of installed power and another 6,000 MW or more in the planning stages, geothermal energy has vast potential. Responsible development could allow geothermal to be a significant contributor to baseload electricity generation in the United States, he says.

DOE SUPPORT

Because the DOE realizes the strategic value of geothermal energy production, the agency supports the industry through its own technologies program. DOE is working to advance geothermal energy as part of a broader energy portfolio. To do this, it focuses on research and development projects with universities, national labs and private companies to develop better, more advanced and safer ways to produce electricity, including geothermal technologies. By exploring issues such as geochemistry, drilling and equipment, the DOE is aiming to create more efficient and less expensive means to tap into geothermal.

Reinhardt describes a few current projects, including two in North Dakota that were supported through the American Recovery and Reinvestment Act of 2009.

“We’re going into existing oil and gas fields that are using hot water and re-injecting it into the hydrocarbon layer to enhance production,” he says.

To do so, DOE is putting a binary cycle unit on the front end.

“Since the water doesn’t have to be that hot, we can capture some of that heat and create a portion of the electri­city needed for the process itself,” he explains.

For a second project, geothermal fluid, a mixture of hydrocarbon and water, is produced at the end of the process.

“That goes through a separator and the wastewater will be run through a binary unit to produce electricity,” he explains. “With binary units going into an existing oil and gas infrastructure, it is a relatively simple matter to plug into the process.

“It adds no cost to the existing operation and maintenance of the field, yet it can produce electricity for in-field production. It’s especially valuable for those operations that are off the grid, for which the producer has to use diesel ­generators,” he says.

The result can be significantly cheaper energy, depending on the price of diesel.

“We’re hoping to compete economically with producers who are on the grid as well,” Reinhardt says. “It’s an efficient use of the wastewater and waste heat, so it just makes sense.”

SEISMIC CONSIDERATIONS

While efficiency and cost make geothermal energy an attractive renewable energy source, some concerns have been raised about the seismic ramifications of drilling into the earth.

“We have taken a look at it [the ­seismic issue] in the interests of good science and being good stewards of public and environmental safety,” says Reinhardt. DOE has put a seismicity protocol in place to let geothermal developers know the best methods to mitigate or avoid risks.

In addition to what the DOE does internally, there are also existing National Environmental Policy Act (NEPA) regulations that govern seis­micity compliance.

With respect to NEPA, “Generally speaking, geothermal projects are usually relatively environmentally benign and have a fairly small footprint relative to the amount of electricity that is gener­ated,” Pritchett says.

However, permitting delays (NEPA and otherwise) can have extremely adverse effects on geothermal projects, mainly because of the long lead-times and high up-front capital costs of geothermal development,” he says.

Also, the industry is currently finding both technical and nontechnical ways to mitigate the risks of geothermal ­exploration.

Both DOE and private industry are conducting research “to improve our ability to image the subsurface prior to drilling, to improve the chances of drilling successful steam production wells and to reduce the per-foot average cost of geothermal drilling,” Pritchett says. Meanwhile, a variety of approaches have been proposed for ameliorating the financial impact of “dry-hole” failures, including proposed federal cost-sharing programs and risk-sharing (insurance) pools.

CONCLUSION

While many renewable resources cannot provide baseload power, geothermal has the potential to produce enough reliable megawatts to provide that power. With technological innovation, driven by private enterprise partnering with DOE scientists and engineers, this resource could become an important part of the energy mix needed to help the country achieve its clean, independent power goals.

VALVES AND CONTROLS USED IN GEOTHERMAL

The valves used in the geothermal energy process are standard to any turbine-generated system.

“We use basically the same valves used in any power steam application,” Reinhardt says. “Butterfly, gate and globe valves are common. There really isn’t anything special although there are situations where we’re dealing with highly corrosive environments, and the pressure is high, so valves are chosen accordingly.”

Butterfly-type control valves are used to regulate inlet pressure to maintain evaporator outlet vapor pressure. Poppet-type main stop valves are commonly used to assure accurate shut-off of the steam flow when a turbine is stopped. In some systems, an internal bypass valve, assembled in the main stop valve, stabilizes control in the low-steam flow range.

On DOE’s wish list for geothermal projects are valves that are reasonably priced but offer more corrosion and pressure resistance.

“A reliable, inexpensive, automated control valve that could fully seal even in highly corrosive environments would be valuable to us,” says Reinhardt. Heat and fluid loss need to be prevented as much as possible, so anything including superior packing materials that can make that happen are desirable components of the valves used in these systems.

With respect to automation, most of the systems use standard hydraulic or electric actuators and have control panels (even on the smaller units). “You can remote-control some of the more advanced electric units and some are even coming up with an iPad or iPhone application,” Reinhardt says. “Remote ­control is becoming the norm, and monitoring is 24/7,” he adds.

GEOTHERMAL OUTLOOK

The total electricity consumption of the United States presently averages about 470,000 megawatts (MW). Of this demand, 45% is now being met by coal-fired generating plants, 24% by natural-gas plants, 20% by nuclear plants and 6% by hydroelectric projects.

Most of the remaining 5% comes from biomass, wind, solar and other renewables, including geothermal. The total installed capacity of geothermal electrical projects in the U.S. is presently about 3,200 MW, representing only 0.7% of the national electricity demand. The U.S. Geological Survey has estimated these existing geothermal projects represent less than 10% of what geothermal is capable of contributing, and that geothermal projects could provide as much as 8% of the U.S. electricity demand (which is more than hydroelectric does today) using only existing, present-day technology.

There are no important technological obstacles to substantial short-term expansion of the industry, although estimates of the longer-term possibilities using various kinds of advanced geothermal technologies vary widely. A 1999 study that used fairly conservative assumptions about the resource base and technology concluded that geothermal resources using existing technology have the potential to support between 35,448 and 72,392 MW of worldwide electrical generation capacity. Using enhanced technology, the geothermal resources could support between 65,576 and 138,131 MW of electrical generation capacity.

Regarding U.S. potential, the National Renewable Energy Laboratory released a report in 2006 that estimated 26,000 MW of geothermal power could be developed domestically by 2015, and that by 2025, more than 100,000 MW of geothermal power could be in production. Currently more than 4,500 MW of geothermal power projects are under development in California, Oregon and Nevada.

—Courtesy of the Geothermal Energy Association

United P&H, an A-D PVF and plumbing affiliate based in Milwaukee, celebrated its 90th anniversary with a dinner cruise. Unitedians and guests were treated to river views of downtown Milwaukee aboard the Edelweiss II.

Enlarge this picture Unitedians celebrate the company’s 90th anniversary with a dinner cruise on the Edelweiss II in Milwaukee. Photo courtesy of Chip Roska.

President Chip Roska congratulated associates on the milestone achievement, and expressed his gratitude for the loyalty, hard work and sacrifices that have exemplified the United culture — particularly, during the recent recession. Unitedians received miniature 1920s vintage truck gift baskets displaying United’s 90th anniversary logo. Vice Presidents, Richard Chojnacki, Tom Hudson and Jeffrey Zawicki, presented a brass clock inscribed with the anniversary logo and cruise date to Roska, on behalf of the company.

Source: Uniter P&H

Prognostication was the name of the game at the recent summer PVF Roundtable meeting held at The Houston Engineering and Scientific Society Club in Houston.  

In front of another huge crowd of about 300 PVF industry executives, featured guest speaker Bob Tippee, Oil & Gas Journal’s longtime editor, returned and shared in detail his publication’s 2012 midyear forecast. He also took time afterward to speak with Supply House Times on a number of pertinent industry topics.  

Part of Tippee’s forecast centered around the continued growth of unconventional energy sources such as the shale plays, which he feels will have huge long-term economic implications.  

“We’re talking about producing from source rock like the Eagle Ford and Bakken (shale plays),” he said. “The industry has figured out how to mobilize hydrocarbons trapped in long and continuous reservoirs that go over long and wide areas. The ramifications are huge. We’re talking about enormous volumes of oil.  

“There will be setbacks. There will be shales where they never do crack the nut. There will be price slumps that will run a number of producers out of business. But overall, we have a much more secure and deliverable supply of hydrocarbon than we did before. The problems of low price and price collapse will eventually get smoothed out when manufacturers catch onto the fact we have a supply of low carbon fuel and natural gas. That will be very good for American manufacturing.”  

In preparing his publication’s forecast, Tippee was surprised by the current crude oil price. “If you have fl at demand and expectations for demand going down and a big inventory build the first half of the year and the supply is going up even though you have some supply problems, why is the price going up?” he asked. “Usually it’s because the dollar has weakened. It didn’t. The Euro weakened.  

“This is just an observation, but when spare production capacity gets down to the level that geopolitical factors provide reasons to worry about, and they definitely do right now with Iran and Syria together, spare production capacity goes down if those two things go down. Traders know that and get very jittery and respond to any geopolitical burp and the price goes up. Over time, it will go down again.

Geopolitical concern coupled with a little less pessimism about global economics explains the price.”  

Tippee sees retreating oil prices and continued low natural gas prices in the coming months if certain components fall into place.  

“If there aren’t any big geopolitical upsets and nobody invades Iran and we don’t have another Libya situation, then I think oil prices settle out and natural gas in the U.S. stays cheap for another year to 18 months and then as demand starts to absorb some of the deliverability, natural gas prices get reasonable,” he said. “Gas settles out at $5-$6 per 1,000 cubic ft. and oil settles out at $90-$100 a barrel, that’s a wild guess. The price of gas wouldn’t be horrible and the supply will be secure and steady. But that will never happen because there will be political upsets and surprises and hurricanes — all things that screw up the market.”  

Given all the activity occurring, Tippee isn’t shocked at the uptick in PVF business this year. “Things should be pretty good in the U.S. with the infrastructure going in,” he said. “There has to be a lot more capacity to deal with natural gas. Gas is good for equipment by nature. Gas is good for people who sell metal materials. There is going to be more business as more heavy material comes down from Canada from the oil sands. These refineries will need retrofits and need new valves, fittings and pipe.”  

New PVF Roundtable members introduced at the meeting included NIBCO, Trace Applications, Forged Components, Louisiana Valve Source, OK Pipe & Fittings, Bakersfield Pipe & Supply, MOGAS, Philip Cornes USA and A & L Valve.  

The next PVF Roundtable — and the final one of 2012 — is Tuesday, Oct. 30 at The H.E.S.S. Club. The evening will be highlighted by the anticipated return of guest speaker John Hofmeister, retired Shell Oil president and founder and CEO of Citizens for Affordable Energy. For more information on PVF Roundtable, visit www.pvf.org.

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BY KATE KUNKEL

Outlook 2013 speakers say natural gas may fuel economic growth

The record-breaking number of attendees at this year’s Market Outlook Workshop, Aug. 9-10 in Chicago, were buoyed by relatively positive messages from all the speakers, who agreed the nation is in recovery.

What they had to say, as always, depended on which end-user industry they were there to represent, but one theme that came from many of the speakers is that growth in North America going forward may well be driven by the abundance and availability of natural gas, which speakers say is taking on an ever-expanding role in the energy mix.

Mark Peters of Oil and Gas Financial Journal called this situation the “golden age” of gas. He explained that if the U.S. is allowed to develop offshore resources and shale, and Canada develops the oil sands as it should, the U.S. could reach fundamental energy resource independence within 5 to 7 years. Reasonable energy prices should encourage additional U.S. manufacturing capacity and a resurgence in domestic manufacturing.

“Gas has great potential that we know how to use,” he said, “and it has the capability to impact everything in the U.S. in manufacturing and in the petrochemical industry.”

His remarks were backed up by several other speakers, including Mark Eramo, vice president of IHS, who added that abundance and low price are encouraging petrochemical producers to bring production back to the U.S.

But natural gas is just one driver. Many factors are affecting the current economic situation, including consumer and business attitudes.

As popular speaker Alan Beaulieu, Institute for Trend Research (ITR), said in his presentation, a good portion of the nation remains pessimistic even while all signs point to recovery.

“Everything that we want to happen is happening, but still we’re not happy,” he joked, “proving that we truly are American.” He warned attendees not to wait to see what will happen next, but to take advantage of current positives, including low lending rates, and begin to plan now for bumps down the road.

SPEAKER-IDENTIFIED TRENDS

• Natural gas is a game changer. If prices stay basically where they are, more natural gas power plants will be built, the petrochemical industry in North America may well be revitalized, and the economy as a whole stands to benefit.
• Developing areas of the world will offer valve companies stronger markets. While the population of North America remains pretty constant, the population boom in developing countries combined with a shift toward urbanization in those developing nations will continue to have an impact on the price of commodities.
• Caution is the norm. While the economy is not retracting at this point, it is also not rebounding as quickly or as definitively as people would like to see. Therefore, many manufacturers and end users are being cautious with spending and expansion plans. Growth will continue, but slowly.
• China’s government will play a role. While China’s economy has not been growing as quickly as before, its government is working to stimulate growth, including starting big infrastructure projects. This could offset some of the negative effects of the economic troubles in the European Union.

DOMESTIC ECONOMY: INVEST NOW; TIMES ARE GOOD

Despite warnings by ITR’s economist Alan Beaulieu of economic troubles by about 2019, the overall feeling he left this year’s market outlook workshop attendees with is optimism. This was because, as he explained it, “The U.S. economy is going to continue to expand in the last half of 2012 and the first half of 2013,” and boom years are to come. Beaulieu stressed to attendees that even though 69% of the U.S. population currently has a pessimistic attitude, the country is in a real recovery. Business in the U.S. is hiring, and the job market is driving the economic expansion, he said. Retail sales are up and construction spending is improving, while credit card debt and delinquencies are down. “The problem is, we’re still comparing this [the current situation] to the bubble years before the recession,” he explained.

The realistic viewpoint is that the country will see a plateau in mid-2013 followed by a mild recession in 2014. However, “It will be nothing like what we just went through,” he said.

Meanwhile, however, he said too many companies are making the mistake of holding back.

“By holding onto money instead of investing, businesses don’t take the steps to drive efficiencies and get into new markets, meaning they will be out of position and ill-prepared for the relative boom years expected for 2015, 2016 and 2017,” he pointed out.

Beaulieu encouraged attendees to look forward for 10 years, figure out what people, training and other investments they will need to position themselves for growth and invest accordingly. “If you are qualified, borrow money,” he advised. “These are the cheapest interest rates you’re going to see for a long time. That investment can give you a good cash flow to bury competitors that can’t borrow,” he said.

However, he warned attendees to pay off that debt by 2019, when he said a major recession will hit. This recession does not have to be disastrous, however, and the country now has the past few years to use as an example.

“Think about what you would have done before the past recession if you’d known it was coming, and do that,” Beaulieu advised.

Beaulieu said that one of the most troublesome problems facing the U.S. economy in the long term may be health care spending.

“In the U.S. we spend much more per person and as a percentage of GDP [gross domestic product] than any other country,” he said.

This is worrisome because “in the next 30 years, 35 million of us will become senior citizens. By age 90, the cost of medical care will be $45,000 per person per year. This is a tax that will be borne by businesses and individuals.”

Although the overall short-term economic outlook is good, Beaulieu also reminded the crowd that things can go awry. For example, “Oil prices could break through $120 [per barrel], and that could slow things down,” he pointed out. Such a development would put a crunch on both consumers and businesses, which means “a bit of a downturn in the economy because higher oil prices are inflationary.”

As far as what has happened most recently, Beaulieu pointed out that manufacturers enjoyed a break from commodity prices as copper and other metals came down because China’s economy slowed. But, he said, this situation will stabilize this year, and prices will go up in 2013 because China is spending to stimulate its economy.

Beaulieu also warned manufacturers they must face the issue of paying more for qualified labor. “Job openings are at a four-year high, but employers can’t find the skilled people to meet the positions for which we want to hire,” he said.

The debt situation in the U.S. is not presenting an immediate crisis, Beaulieu pointed out, but there are also no immediate fixes. Meanwhile, the U.S. is still the largest economy on the planet so there will not be a world currency anytime soon. Even though the country has only 4.9% of the world’s population, the U.S. is still the nation the world looks to for currency guidance, although he does not expect the euro or the European Union to collapse.

With respect to Canada, Beaulieu reported that Canada’s economy will be very healthy over the next 10 years, and won’t suffer from recessions as much as the U.S., partly because it is reducing exposure to this nation. It has an immigration policy that works and has had no housing bubble burst like the one the U.S. experienced.

When asked during a question and answer session whether the election in November 2012 would have any impact on the economy in 2013, Beaulieu said probably not, partly because there will be no significant legislation in the first half of the year that would affect the last half of 2013. However, if a conservative government stepped in and started aggressively dismantling federal spending and healthcare reform, he predicted problems down the line if the dismantling is not done gradually. He also said that if taxes go up by, for example, 4% in 2013, it wouldn’t really affect spending. A cutback in federal spending could negatively impact 2014 but there would be no cliff—effects would be gradual.

FORECAST: The economy will be on a positive footing until at least the middle of 2013. Commodities will level out in 2012 and go back up slightly in 2013. The dollar will be slightly weaker and there will be a plateau in mid-2013 followed by a mild recession in 2014. The years 2015, 2016 and 2017 will be boom years, but 2019 will see a huge recession.

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Anvil International, one of the largest and most complete manufacturers of pipe fittings, pipe hangers and piping support systems in the world, has acquired substantially all of the assets of North Alabama Pipe Corp. (NAP), a leading provider of pipe fabrication equipment and fire protection fabrication equipment. As a result, Anvil will be able to add this state-of-the-art fabrication equipment to its product lines.

North Alabama Pipe will continue to operate under its name, but will now be able to offer its fabrication equipment to markets other than fire protection, according to Dean Taylor, vice president of sales and marketing for Anvil International.  

"The acquisition of NAP strengthens Anvil's product offerings," said Tom Fish, president of Anvil International. "We look forward to providing our customers with a single-source solution for pipe joining products and pipe fabrication equipment."  

Founded in 1983, NAP is a manufacturer of fire sprinkler fabrication equipment, including automatic welders, plasma cut-off equipment, hole cutting equipment, make-on machines and pipe threaders. NAP also manufactures outlets for the fire sprinkler market.  

Source: Anvil