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Next year, it will be a decade since Aramco made the strategic decision to increase its involvement in global standard setting for oil and gas engineering. The goal is to help make the industry — big players and small — more efficient, more reliable, and safer while contributing to the energy transition.
Following our decision in July 2015 to step up our role in global industry alignment, more than 120 of our experts now lead or participate in some 35 international committees that develop standards.
These include the International Organization for Standardization, the International Association of Oil and Gas Producers, the American Society of Mechanical Engineers, and the Association for Materials Protection and Performance.
Our experts also contribute to and lead 15 regional technical committees, helping share our experience and knowledge for the benefit of smaller local players.
Achieving consistency and cost savings
When multiple vendors work on the same production lines, standards help ensure consistency along and across the supply chain. They also enable vendors to benefit from economies of scale, reduce their inventories, shorten lead times, simplify implementation, reduce costs, and reduce time overruns, helping to bring projects to fruition faster.
Such was the need that in 2016, the IOGP set up the Joint Industry Program or JIP33 to help develop procurement standards, and Aramco has since been an active participant. Progress by JIP33 has been impressive, and to date, it has published more than 55 procurement specifications, with Aramco contributing to more than 30. These cover vital high-spend commodities from air compressors, flare systems, and high-voltage switch gears to air-cooled heat exchangers.
One important achievement was our promotion of standards for nonmetallic, multi-layer reinforced thermoplastic gas pipes. Basing the engineering requirements on our own experience, we were instrumental in developing the final code for the use of these pipes, which was published in 2022. The outcome is less pipeline corrosion, leading to fewer leaks and fewer production interruptions.
At Aramco, the economic benefits of having a standard for nonmetallic pipes, including gas transmission systems, have been significant. We calculated that, in 2023 alone, nonmetallic standard equipment delivered lifecycle cost savings of $600 million, taking the cumulative total savings to $4.1 billion since the nonmetallic program inception in 2016.
The benefits are recognized across the industry. Since JIP33 was founded, with support from the World Economic Forum’s capital project complexity initiative, the average cost overrun on procurement projects across the sector has been reduced significantly for several high-spend commodities, thanks to standards it helped develop.
In pursuit of innovation and technological advancement, Aramco has integrated over 100 proven technologies into 83 standards, enhancing requirements across multiple fields. This unwavering commitment ensures that new projects leverage cutting-edge advancements, driving operational efficiency and cost-effectiveness and solidifying our leadership in the industry.
Standardization and the efficiencies it provides are particularly important in reducing greenhouse gas emissions. Hydrogen, for example, is set to play a big role in mitigating carbon emissions, but its molecular structure demands special treatment during its transportation.
It is the smallest element, enabling it to easily permeate steel pipes through cracks and deteriorated joints.
To reduce the risk of loss, improve safety, and speed up the adoption of hydrogen-powered energy, we initiated a multi-disciplinary task force to introduce common standards for the design, construction, and maintenance of hydrogen pipelines.
Aramco has already adopted more than 200 standards associated with hydrogen, greenhouse gas mitigation, and the circular economy, which support our ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across our wholly-owned and operated assets by 2050.
Setting standards internally
Indeed, Aramco has today achieved a record 93 percent best-in-class alignment with industry and international standards, exceeding the global optimal alignment score of 90 percent.
We also set internal requirements, and more than 70 Aramco standards committees have set and developed more than 5,000 company standards, of which more than 2,400 are mandatory engineering documents.
Finally, Aramco’s focus is not limited to developing new standards. We also constantly review existing standards to make sure they are continuously updated and remain relevant to future projects. In addition, on an annual basis, our Portfolio Execution planning looks at our 10-year investment forecast to identify standards that require revision or develop new ones.
The scale of this task is reflected in an estimated cost avoidance potential of $15 billion, illustrating the financial benefits of sound preparation.
But let us be clear. While Aramco benefits from standards across the industry, their effects ripple out well beyond our ownoperations. Today, standards mean many vendors are better placed to work within our sector, greenhouse gas emissions mitigation efforts are more efficient, significant cost savings have been achieved, and risk has been reduced.
Aramco is proud of the contribution it continues to make in this area, and we owe much of this success to our dedicated experts.
- Walid Al Naeem is vice president and chief engineer, Aramco