Please ensure Javascript is enabled for purposes of website accessibility

How Effective Are Pipeline Leak Detection Systems?

By Arjun Sreekumar - Apr 21, 2013 at 12:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Despite major investments in leak detection systems, the technology remains far from perfect.

Recent pipeline spills, such as ExxonMobil's (XOM 0.79%) not-so-minor crude oil spill in Arkansas last month, have raised important questions about the effectiveness of pipeline operators' leak detection systems.

These issues are especially pertinent for TransCanada's (TRP 0.26%) proposed Keystone XL pipeline, which would link production from Alberta's oil sands to U.S. Gulf Coast refiners. With that in mind, let's take a closer look at how leak detection systems work and how effective they are.

A primer on leak detection systems
Though pipeline companies use a wide array of techniques to detect leaks, remote leak detection technology is the most comprehensive, offering real-time, nonstop monitoring along the line's route.  

After purchasing leak detection technology from specialist firms, most pipeline operators customize their system to better serve their needs on a project-by-project basis. In most cases, sensors are placed along a pipeline, where they gauge such important metrics as temperature, pressure, and flow rates.  

This information is relayed to an operator's control room, where it has a dual purpose -- to record how much oil has been delivered to the company's customers and to monitor the line for leakages or ruptures.  

When the sensing technology detects something unusual, such as a sharp change in pressure or flow rates, it sets off an alarm. The company's personnel then conduct additional tests to figure out whether or not the unusual activity signals a leak.  

In many cases, however, alarms can be triggered by non-threatening activity. For instance, the buildup of bubbles within the pipeline's flow -- known as column separation -- often triggers false alarms and appears exactly as a leak would to the remote operators in the control room.  

In fact, some operators may get so used to false alarms that they may become dismissive of real ones. For instance, consider the rupturing of an Enbridge (ENB 0.23%) pipeline in July 2010, which discharged more than a million gallons of dilbit crude into Michigan's Kalamazoo River in what was the first major bituminous crude spill into a U.S. waterway.

Enbridge spill highlights issues with leak detection systems
As InsideClimate News reported in a painstakingly thorough and engaging investigation of the Enbridge spill, for which it was awarded the Pulitzer Prize for national reporting, the Enbridge accident was riddled with misunderstandings that led to an unfortunate outcome.

At the time the pipeline ruptured, the company's controllers were monitoring data from multiple lines, while also working 12-hour shifts. At the first sign of danger -- the moment pipeline 6B ruptured -- numerous alarms were triggered.  

Yet control room and other personnel dismissed the warnings as false alarms triggered because of column separation. It took them 17 hours to figure out they had a spill on their hands. Once you consider the inherent problems with remote sensing, though, it's harder to assign blame to the operators.

After all, they're highly trained, yet still fallible, human beings who are doing the best they can with what they're given -- an imperfect technology. Richard Kuprewicz, president of Accufacts, a consulting firm specializing in pipelines, summed up this tricky dilemma:

If you get a thousand [false alarms] a month, what happens when you get a big [real] one? How do you tell the difference? You can't.

Final thoughts
The bottom line seems to be that remote leak detection technology works as intended only part of the time, despite the millions of dollars the industry invests each year to improve it. Pipelines that have oil flowing at a constant rate are more likely to find such technology beneficial. On the other hand, pipelines with variable flow rates -- a group that includes Keystone XL, as well as most new U.S. pipelines -- are more likely to encounter problems with leak detection.  

The unfortunate reality is that no silver-bullet solution to detect all oil spills consistently and reliably exists today. Even companies with top-notch leak detection systems and experienced control-room personnel have to face the very real risk that some leaks will go unnoticed.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Exxon Mobil Corporation Stock Quote
Exxon Mobil Corporation
XOM
$91.86 (0.79%) $0.72
Enbridge Inc. Stock Quote
Enbridge Inc.
ENB
$44.54 (0.23%) $0.10
TC Energy Corporation Stock Quote
TC Energy Corporation
TRP
$57.25 (0.26%) $0.15

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.