Easwaran Kanason

Co - founder of NrgEdge
Last Updated: July 17, 2020
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Business Trends

In good times, the instinct of any company is to expand. In bad times, that instinct reverses to consolidation. This cycle is no more apparent anywhere else than in the oil and gas sector, where periodic boom-bust periods have been a regular feature since David Beaty drilled the first modern oilfield back in 1875 in Pennsylvania. The year 2020 is proving to be a year of reckoning for the entire industry, for obvious reasons, with all firms of all sizes announcing or preparing to announce major impairments. What follows is usually a swathe of divestments.

Two major sales by supermajors have captured the headlines recently: BP’s exit from the petrochemicals sector through a sale to INEOS, and Shell reaffirming its desire to sell its 35% stake in the Abadi LNG project in Indonesia. Both deals paint a picture of companies retreating from peripheral, though still profitable activities, in order to focus on core activities.

In BP’s case, it will be selling its last remaining petrochemical sites to INEOS, owned by UK billionaire Jim Ratcliffe. The sale encompasses 15 sites in the Americas, Europe and Asia focused on aromatics, acetyls and related businesses for US$5 billion, to be paid in US$1 billion instalments after an initial US$400 million deposit. Charmingly, it brings the INEOS story full circle: INEOS was first formed in 1998 to buy out a BP petrochemicals business in Belgium, and in 2005, paid US$9 billion to purchase Innovene, another BP subsidiary that made up a large proportion of BP’s then-existing chemicals assets.

For INEOS, it’s a great win as it adds aromatics and acetyl capacity where it is lacking, and significantly boosts presence in Asia, described as ‘two big pieces of chemistry in (that) portfolio that (INEOS) didn’t have before, completing the set’. From BP’s perspective, however, the sale runs counter to the prevailing trend in the energy sector where firms are actively expanding their petrochemicals presence, from China to the US Gulf Coast, seeing it as a stable and lower-carbon alternative to complement zero-carbon operational transformations. But BP’s footprint in the petrochemicals business has been shrinking over the past two decades, ceding ground to Shell, ExxonMobil, Total and other national players. It might prove to be a canny move, there has been a massive surge in capacity for petrochemicals recently, with huge oversupply in certain grades that has placed major pressure on petchems profit margins. Global campaigns to reduce single-use plastics also blunted growth prospects. A global pandemic further tarnished the lustre of the sector. For BP, it would have been easy to say yes to pocketing a pretty penny from Jim Ratcliffe, which would allow it to, in the words of CEO Bernard Looney – ‘build a more focused, more integrated BP, (with) other opportunities that are more aligned with our future direction’.

Unlike BP, Shell has announced no intention to reduce its presence in petrochemicals. But it is looking to divest its stake in the Abadi LNG project in Indonesia led by Japan’s Inpex. Why it wants to do that might throw up some questioning looks. Shell through its takeover of natural gas giant BG Group is the world’s largest LNG trader by far. Surely, then, retaining a 35% stake in a large natural gas project would be a good thing. Right?

Perhaps not. Reports that Shell has been wanting to sell its 35% stake in the Abadi LNG project surfaced in 2019. The Abadi LNG project centred on the Masela gas block deep in the Arafura Sea has had a particularly chequered past. Debates between Japan’s Inpex and the Indonesian government over the direction and location of the project has plagued it with delays. Inpex and Shell had favoured floating LNG plant but Joko Widodo’s government was pushing for an onshore plant, tempted by better local employment prospects. The government won out in the end, finally confirming in 2019 an offshore production facility and a 9.5 mtpa onshore plant that would be operational in 2028, extending the Masela PSC by 20 years. Negotiations, it was reported, were particularly strenuous. And perhaps Shell lost patience.

Shell could sell its stake, valued at up to U$2 billion to Inpex, which owns the remaining 65%, or to other players. But few players have the appetite to navigate Indonesia’s complicated upstream sector. For Shell, the exit may be a relief. Particularly since it already has other, equally gigantic LNG assets nearby in Australia. Those LNG assets are expected to take a US$8-9 billion hit as part of a potential US$15-22 billion impairment charge for Q2 2020 on low gas prices. Shell’s view on long-term gas prices is alreadt on the bleaker side. So why not divest now for ready cash, instead of waiting 8 more years for an asset that might be worth even less then?

BP and Shell have offered up an intriguing preview of where the industry could go in these trying times, exits and consolidations, and we expect that there will be a lot more similar divestment announcements to roll out over the remainder of 2020 and in 2021.

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Shell Indonesia Chevron Financial Profits Revenue divestments investments
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Recommend 5 world's best honed cylinder tube & chrome plated piston rod suppliers

Honed hydraulic cylinder tube is the most important material in hydraulic cylinder industry. It is mostly used for producing and repairing hydraulic cylinders. Because the quality performance of the cylinder is greatly determined by the quality of honed tube, so it is very important to get high quality honed cylinder tubes from high quality honed tube suppliers.

There are many honed cylinder tube suppliers in the world, the quantity should be nearly 300, as I know there are more than 100 of China honed tube suppliers till the year of 2018. Some of the honed tube suppliers provide high quality and reasonable prices, but some of the suppliers provide very low prices but with bad quality. Buyers will easily be attracted by the low pricing, but finally they will get into trouble because of quality problems. So how could we find reliable honed tube suppliers with high quality and competitive pricing?

Here I’d like to share 6 best honed tube suppliers in different countries in the world.

1. CRC Distribution Inc.

CRC Distribution is a supplier of hydraulic cylinder products and an authorized distributor of Orkot® composite materials. They have extensive inventories of chrome plated rod, steel honed tubing, hydraulic cylinder components & seals, and rotary seals.

Their access to sealing products from leading global manufacturers like Trelleborg Sealing Solutions, Hallite Seals International, Fugesco, Freudenberg-NOK, and Merkel enables us to provide the highest quality products while delivering local support and personalized customer service to our customers.

2.Team Tube LLC

In United States, the best supplier of honed tubes is Team Tube LLC, here below is their introduction.

A group of friends, each with years of experience in the steel service center industry, started Team Tube LLC in 1995 in the Pacific Northwest. The focus of the new company was to provide rapid, reliable, and knowledgeable service with a full range of round steel tube and bar inventory to meet the needs of the market.

Team Tube LLC is the leading manufacturer and supplier of honed tubes in USA. Its products including honed cylinder tubes, chrome plated bar, CDS tubes, chrome plated tubes, DOM tubes and so on.

TEAMTUBE opened its first location in Portland, Oregon to specifically serve the tube and bar product needs of a number of different industries including the logging industry and fluid power manufacturing and repair industry in the area. The demand for its products quickly allowed them to expand to a second location in Seattle, Washington. The addition of another service center enabled them to efficiently provide rapid deliveries and serve the entire Pacific Northwest region with “instant steel” for their core products.

While growing to serve businesses ranging from small machine shops to major manufacturers in the metal industry, they have been able to maintain our original vision of providing “instant steel”, while focusing on customer needs and their core products, round mechanical tube and bar. This has empowered their growth as they have expanded across the country.

3. Skyline Precision Steel Pipe Manufacturing Co., Ltd

As one of the best China honed tube manufacturer and suppliers, Skyline Precision Steel Pipe Manufacturing Co., Ltd produces and supplies high precision steel honed tubes, honed tubing, chrome plated bar and chrome plated tubes for hydraulic applications for more than 20 years.

Skyline’s factory was established under modern management system and technologies in the year 1996. Till today it has more than 20 years’ experience in manufacturing honed tubes and other precision steel tubes.

Skyline’s honed tube factory covers an area of 40,000 square meters and a building area of 30,000 square meters, of which the production plant area is 25,000 square meters.

Skyline Pipes produces cold drawn seamless tubes, honed tubes / honed steel tubing, hydraulic cylinder tubes of more than 20,000 tons, and manufactures hydraulic piston rods of 500 thousand meters.

Besides hydraulic cylinder tubes, Skyline also produces high quality chrome plated bar and chrome plated hollow bar/ chrome plated tube for cylinder applications.

4. Salem Steel NA

Salem Steel NA is an industry leading supplier of premium quality tubing and bar, used for hydraulic cylinder application. After cold drawing and heat treating, our cylinder tubes will have the ID’s honed or skived and roller burnished (SRB) depending on your preference. Suitable to hone or SRB are also available with tolerances and guaranteed cleanup to be negotiated, depending on your requirements. We only work with ISO certified mills who undergoe a thorough audit by Salem’s quality manager. These mills processing and inspections meet or exceed the U.S. standards.

5. Tubular Steel, Inc.

Tubular Steel is a leading national distributor of carbon, alloy and stainless-steel pipe, tubing and bar products. They have over 60,000 tons in stock at our seven regionally located service centers. Honed cylinder tubes, DOM tubes, CDS tubes are their main product lines.

The honed tube suppliers introduced are the leading and best companies in its own market, and they also export their products to many of the customers in other countries. I will keep updated about the honed tube suppliers' information.

November, 23 2022
What is a Multi-stage Hydraulic Cylinder?

Telescopic hydraulic cylinder brief introduction

Multistage hydraulic cylinders are known as Telescopic hydraulic cylinders also. It is composed of two-stage or multi-stage piston cylinder, mainly composed of cylinder head, hydraulic cylinder barrel, sleeve, piston and other parts.

Our factory produces OD chrome plated honed tubes for telescopic hydraulic cylinder manufacturing and repairing.

There are inlet and outlet ports A and B at both ends of the hydraulic cylinder barrel. When oil is fed into port A and oil is returned to port B, the first-stage piston with a larger effective area is pushed first, and then the smaller second-stage piston is pushed. Because the flow into the A port remains unchanged, the piston with a large effective area has a low motion speed and a large thrust; otherwise, the motion speed is high, and the thrust is small. If oil is supplied to port B and oil is returned to port A, the secondary piston will first return to the end point, and then the primary piston will return.

The characteristics of the telescopic hydraulic cylinder are it can be stretched very long when it is working, and it can be shortened when it is not working. It is suitable for occasions where the installation space is limited, such as the telescopic boom of a crane.

When the telescopic hydraulic cylinder is extended step by step, the effective working area gradually decreases. When the input flow is constant, the extension speed increases gradually; when the external load remains constant, the working pressure of the hydraulic cylinder gradually increases. The extension of the single-acting telescopic hydraulic cylinder depends on the oil pressure, and when it contracts, it depends on its own weight or load. Therefore, it is used for occasions where the cylinder body is inclined or rotated vertically.

Chrome Plated OD Honed Tubes for Telescopic Hydraulic cylinders

Honed tubes are the main material for manufacturing hydraulic cylinders, while chrome plated rod is the main material for manufacturing hydraulic piston rods. When manufacturing a telescopic hydraulic cylinder, every moving stage of the cylinder is acting as the hydraulic cylinder barrel and also act as the cylinder rod. So, to manufacturing a telescopic hydraulic cylinder, we will need to use the chrome plated tube with inner diameter honed and outer diameter chrome plated.

The smooth inner diameter of the chrome plated tube act as the hydraulic cylinder barrel, and the outer diameter of the tube is ground, polished and chrome plated, which can act as the cylinder rod of another stage.

Telescopic Hydraulic Cylinder Tube Suppliers

Our factory produces full size range of honed tubes with OD chrome plated for telescopic hydraulic cylinders. The materials available in SAE 1020, SAE 1026, ST52.3, E355 and CK45.

Besides chrome plated tubes, we also produce the below products.

  1. Chrome plated shafts / chrome plated rods
    2-1. CK45 Chrome Plated Rod | CK45 Hard Chrome Bar | CK45 Chrome Rods
    2-2. 1045 Chrome Plated Rod
    2-3.  4140 Chrome Plated Rod | 4140 Chrome plated bar
    2-4. Induction hardened Chrome Plated Bar
  2. Honed cylinder tubes
  3. 4140 honed cylinder tubes | 4140 hydraulic cylinder barrel
November, 23 2022
What to Expect When You Get Offshore

The offshore industry is unique in that you will spend weeks away from home on an oil rig.

At Global Resources Network, we support clients with oil rig recruitment for drill crew. If you’re interested in pursuing a career in the offshore oil and gas industry, it is important that you know a bit more about what day-to-day life on the job is like. Offshore work is not for everybody, but if you don’t mind hard work and spending time away from home, the rewards to the job can be completely worth it! Here is what to expect when you get offshore.

Arriving on an Offshore Drilling Rig

Offshore drilling rigs are miles from shore and generally require a helicopter to transport you on site. And once you arrive, you’ll be joining a crew of up to 100 people! If you are recruited through us at Global Resources Network, you will be part of a drill crew.

Your experience of arriving offshore will vary depending on the company and oil rig, but you will be allocated a cabin for living in. Cabins usually sleep one to four people and have shared bathrooms between rooms. This can take some getting used to when you first arrive offshore, however most people quickly adapt! There are some nice benefits though - living conditions offshore usually meet a high standard, laundry and cleaning is done for you, and all meals are provided!

And one of the most frequently asked questions about life offshore… Is there wifi? The answer is yes, most oil rigs operating offshore will have internet access! However access may be limited.

Working Hours and Shift Patterns on an Oil Rig

When you’re working offshore, you will not follow a typical 9-5 working day pattern. Once you secure your offshore job in the oil and gas industry, you will be given more information on how your shift pattern will look during the oil rig recruitment process! But usually, the working shift while on the rig is 12 hours ‘on’ and 12 hours ‘off’. Because the rig is in operation 24 hours a day, 7 days a week, patterns will often include both day shifts and night shifts. This is the case for drill crew and other offshore oil and gas jobs.

While you are working offshore, you work without a day off. Although this means hard work and long shifts, most jobs offshore operate on a rotation basis. Therefore, you generally work full time for a specified number of weeks and then you have the same number of weeks off. Across rigs in the North Sea, the rotations are usually 2 or 3 weeks offshore then 2 or 3 weeks onshore where you are completely off work.

Because you are away from home and working in specialised and technical environment, the pay is almost always higher than comparable jobs onshore! This is one of the greatest benefits to taking an offshore job in the oil and gas industry.

We hope this gives you some insight into what to expect when you get offshore! At Global Resources Network, we are specialists in recruiting for the offshore drilling industry. The support for our candidates is unparalleled across offshore recruitment agencies. We are currently looking for personnel to fill a number of drill crew jobs. Please contact us if you are interested in working in the offshore drilling industry and would like to know more about how we can help you!

November, 17 2022