Improving Efficiencies and Reducing Logistics - Industrial Project ...

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system? Safe: Provide a safe working environment by protecting users and operators from: .... Tomorrow's Proppant Distri
Improving Efficiencies and Reducing Logistics Costs Fabian Ros President & CEO Industrial Project Solutions

How to set up an efficient proppant distribution and supply system?  Safely handling proppants

 Maintaining proppant quality.  Reducing logistic cost  Improving well-sites proppant supply system capacity

Basic attributes of an efficient proppant distribution supply system:  Safe  Reliable  Flexible  Low Operating Cost  Easy to Operate

How to set up an efficient proppant distribution and supply system?

Safe:

Provide a safe working environment by protecting users and operators from: a. Silica sand exposure b. Bodily and physical damage A safe proppant distribution system must be designed and built in accordance with OSHA regulations and ACGIH recommendations

How to set up an efficient proppant distribution and supply system? Reliable : Proppants distribution system should have: a. Proper material handling equipment b. Easy maintenance c. Robust control system A reliable system should be designed and built to handle high transfer rates while protecting the equipment and product.

How to set up an efficient proppant distribution and supply system? Flexible: Proppant distribution systems should be designed to: a. Handle a variety of proppants b. Turn the inventory frequently c. Receive and re-stock returned product A flexible system should be designed and built to accommodate the well-site proppant demand changes.

How to set up an efficient proppant distribution and supply system?

Low Operating Cost:

Proppant distribution systems should be designed to: a. Operate with minimal personnel b. Semi-continuously unload and load-out proppant A low operating cost system should be designed and built to operate with the least personnel while minimizing demurrage charges.

How to set up an efficient proppant distribution and supply system?

Easy to operate:

Proppant distribution systems should be designed: a. With the operation requirements in mind first b. To provide operators safe and easy access to the work areas c. With a control system that limits operators errors and provides the operators with the overall system status

Proppant Transload System

RBT and Rail Spur

Proppant Transload System

RBT and Rail Spur

Proppant Transload System There are basically two types of PTS:

• Long-Range

• Mid-Range

Long-Range PTS The Long-Range PTS should have the following unique characteristics:

 Expandable  Handle high TPH  High storage capacity Maintain proppant properties

Mid-Range PTS The Mid-range PTS is designed to serve as a bridge between the proppant Manufacturing source or the Long-Range PTS, and the well-site. An most importantly to reduce the number of required truck and to improve the well site proppant demand changes.

Mid-Range PTS The Mid-range PTS’s main functions:  Improve Logistic Response to WellSite Demand Changes  Reduce the proppant delivery costs  Avoid Demurrage  Reduce the required number of trucks

Mid-Range PTS The Mid-range PTS should have the following unique characteristics: Modular (Expandable and Contractible) Movable Multimodal Maintain the proppant properties

Mid & Long Range PTS The Mid & Long range PTS’s common characteristics:  Safe to operate  Low manpower  Effective close caption emissions control  Real-time system remote access  ERP interface  Prevent product degradation and contamination

How can real-time information reduce logistics costs?

Real-Time Information Allows:  Accurate Inventory Control Schedule - Manufacturing Plan - Logistics On- Demand Invoicing

Real-Time Information The real time information System system should provide: Remote inventory access Actual unloading rates Critical equipment performance Remote BOL access Third part ERP system interface

Robust Control System The Control System and Instrumentation should:  Prevent operator mistakes  Inform the operator of systems’ trouble  Monitor each individual equipment  Allow maintenance to troubleshoot the equipment locally.

Robust Control System

Process Control/Automation

How to maintain the quality of proppant in transport?

Proppant Handling A well designed proppant handling system System should have : Proper equipment design and selection Efficient dust collection system Real-time information and robust control system

Equipment Selection The equipment selection should be based on:

 Material Physical Characteristics Density Flowability Surcharge Angle Abrasiveness  Flow Rate Tons Per Hour

Equipment Selection Proper equipment selection will:  Prevent proppants degradation  Prevent proppants segregation  Prevent proppants contamination  Reduce the system construction cost  Reduce operating cost  Reduce maintenance cost  Increase the system reliability Save your company $$$$$

Dust Collection System An efficient dust collection system is more than just a dust collector and ductwork. A true efficient dust collection system should be designed in accordance with all process equipment in mind.

Dust Collection & Equipment Design The material handling equipment design should be in accordance with ACGIH recommendations and should:  Avoid drastic changes in material trajectory  Maintain a cohesive material stream  Limit the air flow into the transfer point

What should you avoid? Inadequate Storage Areas Product Degradation & Segregation Product Contamination Long Chutes Rotating Distributors

What should you avoid? Incompatible handling systems (i.e., grain and cement handling systems) Exposing employees to respirable dust Providing regulators and government agencies arguments to introduce new laws or to reduce current PEL ‘s levels.

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Safely, Reliably @ Lost Cost

Today’s Proppant Distribution System

260-400 mi

Tomorrow’s Proppant Distribution System 260 mi

60 mi

200 mi

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Proppant Distribution System

Tomorrow’s Well-Site Proppant Supply System

Questions?