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Boiler Housing Numbers Spells Trouble

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Most foremen do not freely admit to those working under them that anyone “pencils in” production numbers. It’s something that only happens to the other guy.

But it has been my experience that those that are least likely to admit it, seem to have the most spills and other snafus associated with “boilerhoused” numbers. I wish I could find a study about how much oil and gas producers lose because of incorrect production numbers.

What Is Boilerhousing?

In the past — and today — an operator goes to the well, gauges the tank and looks at the gas meter. Based on the readings, he determines how much oil and gas that well produced. 

After several months, the wells begin to level out and the numbers become consistent. Sites are remote and operators are the only ones visiting them. Well, they may not visit them; instead they “pencil in” numbers based on previous readings. This is a practice known as boilerhousing.

Why Is Boilerhousing Numbers A Problem?

Tanks may overflow, or wells may not be flowing, but no one knows. These problems are dangerous and lead to losses in production and profit. In some cases, the numbers have been fudged so much you can run into accounting problems, compliance problems, environmental hazards and production anomalies.

How To Stop Boilerhousing

Implementing automation systems can completely solve this issue. One of the key benefits of an automation system, especially one that is connected to a network, is its ability to check the production numbers and prove their accuracy. To learn about implementing an automation system, contact Champion Automation.

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