Preparing Oil for Market: Part 1

We know how tough the oil industry can be, and it’s about more than just obtaining the oil. There are so many rules and regulations, so many possibilities to consider. You also need to make sure you have the oil prepared properly to take it to market. While equipment is our expertise, every aspect of the oil and gas industry is essential to understand. Today we turn our focus to preparing and delivering the highest quality oil products by means of a LACT unit. 

Preparing to Sell Your Oil

One thing to consider right away is that you have enough oil to sell. For many, that’s not an issue. If you’re selling by the truck or one tank a month, however, make sure that everything is full when you take it to sell. You should have already treated your oil, thus sediment, water and contaminants should encompass less than 1% of the product. That could change depending on the purchaser, but it’s a normal baseline number. You also want to make sure the emulsion forming on the heavier components of the fluid meets the requirements of your purchaser, which is typically a minimum of four inches below the sales output. 

Most often you will be selling via an automatic LACT unit (Lease Automatic Custody Transfer) and by truck transport. The more complicated strategy of selling by truck requires a full load of oil that’s separated, treated and completely ready to go by an exact date. You also need to work in conjunction with a gauger as well as a transport driver. Using an LACT unit enables you to sell your oil right away. Unfortunately, however, LACT units aren’t always available, leaving only the more complicated route.

Selling With a LACT Unit

With a LACT unit, you’re selling oil straight into the pipeline. Simply attach the unit to the stock tank, turning it into a surge tank. The unit can then gauge if the oil in the tank is ready for sale, as well as monitor the amount of oil inside. Once the oil reaches the appropriate quality and quantity, the LACT unit will activate and sell oil into the pipeline. If oil quality drops to subpar standards, the unit will shut off. It also shuts off when the level drops below the requirements. 

Of course, to run efficiently the unit involves various elements. A 30 psi is maintained via the liquid transfer pump in order to prevent gas from dispersing further into the oil. This allows a positive displacement meter to correctly calculate the flow. This is accomplished by using a mechanical flow meter and could require increased pressure to operate. 

Like most equipment, meters age with time. This is why you must test them regularly and take corrective action when necessary. When properly cared for, LACT units keep on top of sediment and water percentages in oil, all while selling. Anything that doesn’t meet the quality standards will be sent back.

Meet All Your Equipment Needs With Tiger General

Make sure you have the right stuff to do the job by shopping at Tiger General. Fill out the Tiger General Truck Inquiry Form today to get started on bringing your next piece of equipment to where it’s needed most. 

Watch out over the coming weeks for the second installment of this post to learn more about selling via truck!

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