Oil Losses Problem in Oil and Gas Industries

Abstract

Oil losses is a problem that often arises in oil and gas industries either in onshore or offshore area. There is a loss discrepancy between total quantities from shippers and measurement in the storage tanks; the total sending volume is lower than the measured volume in the mixing tank in a gathering station; this is known as oil losses. When this occurs, an agreement to determine a fair share of the losses must be made. There are two categories of oil losses, they are individual and group losses. Individual loss occurs when oil from one shipper has not been mixed yet with other oils. This includes emulsion and evaporative losses. Group loss occurs during mixing oils in the same storage tank or pipeline. Furthermore, by knowing the causes of oil losses, a way to minimize oil losses can be determined.