STWA deploys AOT(TM) viscosity reduction system on pipeline

Save The World Air, Inc., a developer of integrated solutions for the energy industry, has announced that it will shortly be commencing testing of its AOT™ (Applied Oil Technology) viscosity reduction system with a major midstream operator on a primary crude and condensate pipeline serving the Eagle Ford in South Texas.

The deployment will measure the efficacy of AOT technology to reduce the viscosity of the condensate or ultra-light crude carried by the pipeline with independent testing to be conducted by ATS RheoSystems. Testing and analysis of the data is expected to begin in the first quarter of 2015 and be completed in the second quarter.

"The opportunity to position a single-vessel AOT installation on one of the nation's highest volume condensate lines provides an ideal proving ground for demonstrating the operational and cost efficiencies our technology can deliver," commented Greggory Bigger, STWA's Chief Executive Officer and Chairman. "Clearly this is an important milestone in the commercialisation of the industry's first solid state technology that harnesses electricity to lower viscosity and improve the flow of a broad range of grades of crude oil."

Production of condensate has surged in recent years as a by-product of the use of enhanced oil recovery techniques to extract 'tight'oil and gas from shale formations throughout North America and overseas. A mixture of liquid hydrocarbons, condensates form in underground reservoirs as a result of temperature and pressure changes caused by drilling. According to the Energy Information Administration, the U.S. currently produces 1.2 million bpd of condensate, with output projected to reach 1.6 million bpd by 2018.

"The exponential growth in US condensate production is contributing significantly to the energy industry's pipeline capacity challenges, creating the potential for an immense, long-term market for AOT," Mr. Bigger said. "In particular, takeaway congestion is causing delays in moving crude oil southward to Gulf Coast storage facilities, refineries and offloading terminals, making this deployment both a timely and compelling demonstration of the role AOT technology can play in mitigating these bottlenecks."

The Eagle Ford is the most active shale play in the world and currently produces over 870 000 bpd of crude oil and 220 000 bpd of condensate daily. The US Energy Information Administration estimates the Western Gulf Basin in total holds approximately 4.1 billion bbls of recoverable oil.

"We began commercialising our AOT technology last quarter and are collaborating with various parties in substantial shale plays both in the US and overseas, building out a channel for business," Mr. Bigger stated. "We believe STWA is positioned well in the coming year to further demonstrate the ROI our technology brings to the oil field services market."

STWA is the developer of two types of patent-protected industrial equipment designed to deliver measurable performance improvements to crude oil pipelines. STWA's flagship product AOT improves the economics of transporting crude oil by reducing the viscosity of oil in pipelines, addressing the enormous capacity inadequacies of domestic and overseas pipeline infrastructures that were designed and constructed prior to the current worldwide surge in oil production. STWA Joule Heat is an energy-efficient crude oil heating technology which applies an electrical field directly to oil in transit, improving flow and pipeline performance with less power and in a smaller form factor than existing trace heating solutions.

Adapted from press release by Hannah Priestley-Eaton

Published on 19/02/2015

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