03/11/2013

Safety and the Shale Boom

Fluid power distributors preserve environment, business opportunities with focus on safety

By 2040, shale gas production in the U.S. is expected to quadruple, according to a report from the James A. Baker III Institute for Public Policy. In fact, the boom that has already resulted from the development of a more economical approach to hydraulic fracturing, or fracking, has been compared to the oil rush of the early 1900s.

Fluid power distributors like Wojanis Supply Company Inc. in Pittsburgh, PA, are reaping the benefits. President Judy Wojanis says about 20 percent of her company’s revenues are from oil and gas, a market she says is growing more rapidly every year.

Wojanis says the shale boom has the potential to greatly ease the U.S. energy crisis and reduce the trade imbalance. “This is a bright spot in an otherwise dim future,” she says, which is part of why the boom, and the fracking that is a part of it, has garnered so much media attention in recent years.

Wojanis Supply made inroads into oil and gas about four years ago, and revenues in that market have been increasing 20 percent annually. The company even opened a satellite office near Williamsport, PA, to better serve an existing oil and gas customer in the state. 

Mike Marthold, former FPDA president and current vice president of Wainbee Ltd.’s western region, says his company has also benefited from the boom. When Wainbee, based in Ontario, Canada, entered the oil and gas market in 1983, Alberta was an oil and gas hub. As natural gas from shale has become more easily extractable and fracking technology has become less expensive, the industry has expanded quickly into other regions. The past five years’ activity in North America has resulted in a boom for FPDA distributors, he says. 

Marthold says that while fracking has been done for a long time, more fracking in more places has led to increased publicity into the practice. That’s led to more curiosity and, oftentimes, more concern over the potential environmental impact. Events like the Gulf of Mexico oil spill in 2010 make environmentalists increasingly passionate about restricting drilling and preventing projects like pipeline extensions, he says. “They say, ‘If we get a spill, look what’s going to happen. We’re going to cover all of these poor birds with oil, we’re going to kill all of the fish, and we’re going to do some serious damage to the environment’,” Marthold says. 

This has led those connected to the industry to focus even more heavily on developing technology that minimizes environmental impact. The safe design, application and maintenance of the equipment used, he says, is directly linked to reducing environmental harm. “The more safely something is designed, the less chance there will be of an environmental impact,” he says. 

Wojanis says safety will also help to preserve business relationships. That’s part of why, she says, the service Wojanis Supply provides must include safety training and support. “I know that in the fracking industry, just like in any industry, accidents happen. But the more safety-conscious you are right from the start, the less chance there will be of accidents happening,” she says. 

Wojanis says she uses industry association programs, manufacturer training programs and other resources to educate employees on the safe use on the products Wojanis Supply provides. She also provides end-user support in the form of training materials and on-site reps to ensure that the fluid power components the company provides perform well and will be used safely in oil and gas applications. 

Wojanis has a vested interest in encouraging safe drilling practices. She lives on a farm and has a gas and oil lease on her property. A spring there provides water for two ponds, she says, “so it’s very important to me that this is done right.” 

Wojanis Supply has even developed a proprietary software program to ensure the safe application of Wojanis components. The system tracks parts already in use by customers and identifies those that are due for replacement, a service Wojanis says improves equipment maintenance, ensures safety and helps customers save time by avoiding equipment failures. 

It also encourages repeat purchases and helps customers improve their safety ratings, Wojanis says. 

Marthold says the rapid growth of the U.S. oil and gas industry has increased customer demand for this support.  “When there’s a boom time occurring, like with fracking, you’re going to get companies that just can’t get people with certain skills.” He says FPDA distributors and their specialized knowledge are a valuable asset. 

Distributors can also minimize the environmental impact of shale extraction and preserve future opportunities through collaborative efforts between suppliers and designers of the equipment, factoring in the environmental impact as a key design consideration, Marthold says. Distributors, he says, must consider the environmental goals of their customers when determining product offerings. 

This article is the first in a series on the shale boom and its impact on FPDA members. Help us provide the best information on challenges and best practices in serving oil and gas by completing this brief survey.