In oil & gas production, lost and unaccounted for (LUAF) production is:
…the difference of the physical inputs and the physical outputs of the pipeline system… A “LOSS” occurs whenever the physical inputs are greater than outputs of the pipeline system.
Laura opens noting that lost and unaccounted for production is a reoccurring concern she has been hearing in the lower price environment than it was when prices were much higher. A certain amount of imprecision was not as worrisome when profitability was high.
Over the past few years, accurately accounting for production has taken on a higher priority.
Some traditional measurements of production flows require more frequent maintenance and must be changed out when production rates decline over time beyond the turndown ratio of the flow measurement device. This is especially a factor in onshore shale production regions. The impact is higher lifecycle costs to maintain these flow measurement devices over the life of the producing field.
Flow measurement technologies, such as Coriolis flow measurement have wider turndown range and help oil & gas producers significantly reduce LAUF production. Reducing LAUF grows confidence that both sides of a custody transfer are getting what they are expecting to get.
Some flow measurement technologies require straight piping runs that increase the space and capital expenditure (CAPEX) requirement on the well pad. Coriolis technology enables more compact, capital-efficient design approaches.
If you’ll be in Houston for the May 1-4 Offshore Technology Conference (OTC 2017), visit with Laura and the other Emerson oil & gas industry team members in Booth #4915 at the NRG Center. Sign up here for a free day pass into the OTC exhibits.
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