A major problem in the Oil Country Tubular Goods market (OCTG) is the degradation of downhole pipes and tubes, surface piping, pressure vessels, storage tanks and other equipment due to corrosion, abrasion and other factors.  In fact, the cost in the United States alone of corrosion in this market is estimated to be $1.4 billion each year (Source:  Gregory R. Ruschau, Ph.D., and Mohammed A. Al-Anezi).  Xurex’ unique nano-technology chemistry treatments have been demonstrated to extend the life of these products by up to ten-fold, at the fraction of the cost of traditional epoxy-based treatments.

In high sulfuric content fields, untreated pipe corrodes very quickly.  Our customers were informed that some treated pipe went into a field known for early pipe failures in which operators observed corrosion starting in seven days and complete failures in as early as thirty days.  Pipe treated with Xurex’ solutions has been in service over 120 days with no apparent signs of corrosion.

To appreciate the need for Xurex technology, this service one must first understand that typical untreated pipe costs less than half that of lined pipe - which is also prone to failure. Additionally, unlined pipe of a specific diameter is more attractive than lined pipe due to the amount of cubic feet per minute that can flow through unlined pipe. Lined pipe of the same dimension always has a slightly smaller internal diameter as opposed to untreated pipe, resulting in the lined pipe producing lower flow rates.

As untreated pipe corrodes the internal diameter diminishes, thus further restricting flow.  In the industry this is what contributes to a mechanical depletion curve.  In tests, untreated pipes coming out of the original test field sometimes have internal diameters as small as a pencil.  By protecting non-lined pipe an operator benefits from higher flow rates and saves on having to frequently replace pipe.

There are over 500,000 operating wells in the United States alone, representing a market potential for Xurex’ products and services in the Oil & Gas sector which approaches $5 billion, excluding international potential.