Cost of Corrosion in the Oil & Gas Industry

According to a study by NACE International, the global cost of corrosion was estimated to be $2.5 trillion in 2013, which is equivalent to approximately 3.4% of the world's gross domestic product (GDP).

In the oil and gas industry specifically, the cost of corrosion is estimated to be in the billions of dollars per year. A report by the Pipeline and Hazardous Materials Safety Administration (PHMSA) estimated that the direct costs of corrosion in the U.S. oil and gas pipeline industry alone were $7-8 billion per year. This includes costs associated with maintenance, repair, and replacement of corroded equipment, as well as costs associated with environmental damage and cleanup.

Corrosion in the oil and gas industry can result in significant costs and negative impacts on safety, productivity, and the environment. Here are some of the ways in which corrosion can impact the industry:

Equipment Failure: Corrosion can cause equipment failures, which can lead to unscheduled downtime, reduced productivity, and increased maintenance costs.
Environmental Damage: Corrosion can lead to leaks and spills, which can cause environmental damage and result in costly cleanup efforts.
Safety Risks: Corrosion can compromise the structural integrity of equipment, posing safety risks to personnel and potentially causing accidents.
Reduced Efficiency: Corrosion can reduce the efficiency of equipment, leading to increased energy consumption and operating costs.
Increased Maintenance Costs: Corrosion requires regular maintenance and repair, which can be costly and time-consuming.

Overall, the cost of corrosion in the oil and gas industry can be significant, both in terms of direct costs (e.g. equipment repair and replacement, cleanup costs) and indirect costs (e.g. lost productivity, safety risks, environmental damage). It is therefore important for companies to invest in corrosion prevention and mitigation measures, such as corrosion inhibitors, coatings, cathodic protection, and regular inspections and maintenance.

Zerust Oil & Gas offers corrosion mitigation solutions for the upstream, midstream, and downstream markets in the Oil & Gas industry. For more information, please click here to view our solutions page.