Compression gets cleaner and more efficient as the nation's reliance on natural gas grows.

Technology makes a difference in the compression industry. The working parts are not just big, slow engines driving rotary screw or reciprocating compressors. They are clean, efficient, reliable combinations of tightly matched machinery that require less onsite maintenance, post better up times and work smarter.
"New engines are smart engines. Compressors are state-of-the-art with better valves," said Jim Ingram, president of Pamco Services International Inc., a division of Stewart & Stevenson.
"Now we have smart control panels. We can monitor everything (about the compressor) from an office in Houston. We know more about what's going on in that compressor," he added. "We can now monitor each cylinder and look at the firing temperatures. We can see approaching problems."
About 40% of costs in compression are labor time costs, and about half of that time is behind the windshield, driving to locations. "By monitoring, we save windshield time," added Eric Long, chief executive officer of USA Compression.
"We can see real-time information on up to 90 points on a compressor package. We can tell when a failure is coming," he said. For instance, exhaust valves might get hotter than normal.
Engines have more horsepower for the weight, and they are more efficient.
Emissions are getting lower and lower, and operators are asking for more remote monitoring capability. "The cost of receiving raw data continues to decline," said Kirk Townsend, vice president of sales for Universal Compression.
Hy-Bon Engineering Co. Inc. is developing a low-cost, electronic pilot valve that senses pressure and will start and stop the compressor unit automatically. "We getting away from the flashing light to remote monitoring of equipment. We're looking at hardware and software," said James Sidebottom, engineering manager.
That sophistication may add to efficiency, but it also means Pete the pumper isn't the right person to handle the maintenance. Compression operators need to change oil more often to keep the equipment clean. Engines run right on the ragged edge of detonation for top fuel efficiency. The machinery needs more sophisticated caretakers. "If you do proper maintenance, you will get better up time," Ingram said.
Maximum up time made possible by proper maintenance is the key to success in the compression business, and that is the most important reason for a massive industry move toward outsourcing compression services.
"The compression leasing and service industry guarantees 95% or greater up time. We pride ourselves on significantly greater up time. On the producer (-operated) side, people are pumping and have other tasks. They might run the machinery until it breaks. We do proper maintenance," Long said. Studies have shown oil and gas companies get between 80% and 85% up time for their machinery.
An oil and gas company that uses its limited capital for exploration, drilling and production generally will show a better return than one that spends some of that money on compression or other areas outside its primary focus.
Independents were among the first to see the savings. The majors came later, said Townsend. As independent oil companies without compression experience bought properties from majors, they turned over the compression operations to compression service companies for several reasons.
Compression service companies:
• maintain parts inventories;
• have technicians in the field;
• can match compressors to specific jobs; and
• will guarantee more up time.
Widely publicized studies from the National Petroleum Council forecast a 29 Tcf gas market in 2010 and 31 Tcf by 2015. Matt Simmons at Simmons & Co. International said that's too conservative, and that the United States will need 40 Tcf by 2015, up from about 19 Tcf in 1999.
Supplying compression to move that much gas from wells and fields and through pipelines will require a tremendous investment, but the service company representatives said they were confident the industry would earn the returns necessary to invest in that new equipment.
Ingram is more worried about prices.
At press time, gas was selling for US $4.29/MMBtu. That price level provides income for operating companies and service companies, but "With demand too high, prices get out of balance. If the price gets out of whack, some companies would look to switching (to coal or other fuels)," he said.