Success Story


Selecting Steel-Reinforced Pipe for Permian Basin Application Reduces Operator’s CAPEX by 24%

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The Challenge

The downturn in hydrocarbon-energy prices that began in 2014 put added pressure on oil and gas companies to minimize their operating costs. More than ever, decisions regarding CAPEX and OPEX could mean the difference between staying in business and going out of business. This economic climate led an operator working in the Permian Basin to seek the most cost-effective pipeline installation in the industry. The application called for a 7-mile, 8-inch gas production line to be installed in a very remote area of the Permian.

The Solution

For the company’s application, FlexSteel recommended using its 8-inch, 1500-psi line pipe. The pipe’s design would reduce installation complexities, maximizing pipeline construction safety and efficiency. To further increase project cost-effectiveness, FlexSteel set up a job service center in nearby Pecos, Texas. By operating from this location, FlexSteel could immediately respond to project work and supply requests. Providing this level of support would enable the company to minimize project costs.

The Results

FlexSteel completed the installation of the company’s 7-mile gas production pipeline 28 days faster than if the operator had elected to install a conventional steel pipeline. Beyond the reduced installation time, the company realized further cost savings by selecting a line pipe that can be installed by a crew one-eighth the size of that needed for a steel line. FlexSteel pipelines also require fewer tie-ins, which makes installations safer and more efficient. When compared with the cost of constructing an 8-inch steel pipeline in the same area, installing FlexSteel pipe reduced the company’s CAPEX on the project by 24%.