Case Study: Optimizing inspection frequencies for metering points

Optimizing calibration frequencies for 197 meters could save $146k over 5 years, showcasing the tangible benefits of inspection frequency adjustments.

Case Study

Optimizing Metering Point Frequencies of Regulatory Inspections in the Oil and Gas Industry
Client: Mid-size producer

We are pleased to deliver this case study on behalf of Blue Chip’s findings:

Overview

The oil and gas industry relies heavily on accurate metering points to ensure efficient operations and regulatory compliance. However, the frequency of regulatory inspections at these metering points can impact operational costs significantly. This case study delves into the analysis of optimizing inspection frequencies for various metering points in the oil and gas industry with the aim of enhancing operational efficiency and reducing associated costs.

Challenge

The challenge lies in determining the optimal frequency for regulatory inspections at metering points while maintaining compliance with industry standards and regulations. This requires a thorough analysis of existing inspection frequencies, data availability, and potential cost-saving opportunities without compromising operational integrity or regulatory compliance.

Solution:

The solution involves a comprehensive review of existing inspection frequencies for gas meters, HCL meters, internal inspections, and sampling points. By evaluating available data and identifying opportunities for optimization, recommendations can be made to adjust inspection frequencies where feasible. Additionally, improvements in software systems, meter schematics, and procedural documentation can enhance tracking and compliance efforts.

Directive 017 – Exception Opportunities

Gas Meters (Calibrations)
- - 5-year from Annual
  - Annual from Semi-Annual

HCL Meters (Proving)
- - Biennial from Annual
  - Quarterly from Monthly

Internal Inspections
- - Doubling Frequency

Sampling
- - Pool Representation
  - Biennial from Annual
  - Exemption

Outcome:

Upon completion of the Metering Point Frequencies analysis and implementation of recommendations, several key outcomes were achieved:

Significant cost savings identified through optimized inspection frequencies for gas meters, HCL meters, internal inspections, and sampling points.
Enhanced data tracking and documentation systems to improve compliance and streamline inspection processes.
Increased efficiency in regulatory compliance management through systematic review processes and vendor education initiatives.
Invitation for further discussion and questions to facilitate ongoing improvement and refinement of inspection optimization strategies in the oil and gas industry.

In conclusion, the optimization of inspection frequencies in the oil and gas industry presents a valuable opportunity to improve operational efficiency and reduce costs. By leveraging data analysis, process improvements, and industry collaboration, organizations can achieve sustainable compliance while maximizing operational performance. Continued monitoring and adaptation to evolving regulatory requirements will be essential in maintaining the effectiveness of inspection optimization strategies over time.

Check out our measurement service offerings and to learn more about how you can optimize inspection frequencies, feel free to reach out to info@bluechipmrc.com for additional information or to discuss specific insights from this case study.