Page 144 - Challenges in Corrosion Costs Causes Consequences and Control(2015)

122 CORROSION COSTS

with this activity were determined to be about $1.4 billion with 0.6 billion attributed
to surface piping and facility costs, $0.5 billion to downhole tubing and 0.3 billion to
capital expenditures related to corrosion.
2.2.7.5.21 Mining Corrosion in this sector is not as significant a problem as in
other sectors. The primary life-limiting factors for mining equipment are wear and
mechanical damage. Maintenance painting, however, is heavily relied on to prevent
corrosion, with an estimated annual expenditure of $0.1 billion.

2.2.7.5.22 Petroleum Refining Approximately 23% of the world’s petroleum
refineries are in the United States. The nation’s 163 refineries supplied more than
18 million barrels of refined petroleum products per day in 1996 with a total
corrosion-related direct cost of $3.7 billion. Maintenance expenses amount to
$1.8 billion of this total; vessel expenses are $1.4 billion; and fouling costs are
approximately $0.5 billion annually.

2.2.7.5.23 Chemical, Petrochemical, and Pharmaceutical Production The
chemical industry includes manufacturing facilities that produce bulk or specialty
compounds from chemical reactions between organic and/or inorganic materials.
The petrochemical industry includes facilities that manufacture substances from
raw hydrocarbon materials such as crude oil and natural gas. The pharmaceutical
industry formulates, fabricates, and processes medicinal products from raw mate-
rials. Annual direct costs total $1.7 billion for this sector, which amounts to 8% of
capital expenditures. This does not include corrosion costs related to operation and
maintenance. Acquiring detailed data from individual companies and processing it
can help assess the corrosion costs of operations and maintenance.

2.2.7.5.24 Pulp and Paper This industry costs $165 billion and provides 300 kg of
paper per person each year. There are more than 300 pulp mills and 550 paper mills
that support the production. The harsh processing environments of this industry make
corrosion control costly as well as challenging. The direct annual cost for this sector
is $6 billion, calculated as a fraction of the overall maintenance costs.

2.2.7.5.25 Agricultural Production According to the National Agricultural Statis-
tics Service, about 1.9 million farms produce livestock and crops in the United States.
The primary reasons for replacing machinery or equipment include upgrading and
damage because of wear and corrosion. The estimated corrosion cost in this sector is
$1.1 billion on the basis of the assumption that corrosion costs represent 5–10% of
the value of all new equipment.

2.2.7.5.26 Food Processing This is one of the largest manufacturing industries in
the country, accounting for approximately 14% of the total manufacturing output.
Stainless steel is extensively used in this industry because of food quality require-
ments. The total estimated corrosion cost is $2.1 billion including stainless steel
used for beverage production, food machinery, cutlery and utensils, commercial and
restaurant equipment, appliances, aluminum cans, and the use of corrosion inhibitors.