Dmc Global's Comment on Sales, Marketing and Customers
DynaEnergetics' perforating and seismic products are purchased by international
and regional oilfield service companies of all sizes working in both onshore
and offshore oil and gas fields. Our customers select perforating products based
on their leading performance, system compatibility and ability to address a
broad spectrum of factors, including pressures and temperatures in the borehole
and geological characteristics of the targeted formation.
The customers for our oilfield products can be divided into four broad categories:
purchasing centers of large service companies, international service companies,
oil companies with and without their own service companies, and local resellers.
NobelClad’s products are used in critical applications in a variety of
industries, including upstream oil and gas, oil refining, chemical and petrochemical,
hydrometallurgy, aluminum production, shipbuilding, power generation, industrial
refrigeration and other similar industries. NobelClad’s customers in these
industries require metal products that can withstand exposure to corrosive materials,
high temperatures and high pressures. NobelClad’s customers can be divided
into three tiers: the product end users (e.g., operators of chemical processing
plants), the engineering contractors that design and construct plants for end
users, and the metal fabricators that manufacture the products or equipment
that utilize NobelClad’s metal products. It is typically the fabricator
that places the purchase order with NobelClad and pays the corresponding invoice.
NobelClad has developed strong relationships over the years with the engineering
contractors, process licensors, and equipment operating companies that frequently
act as buying agents for fabricators.
Explosion-welded clad metal is primarily used in the construction of large
industrial processing equipment that is subject to high pressures and temperatures
and/or corrosive processes. Explosion welded clad plates also can be cut into
transition joints, which are used to facilitate conventional welding of dissimilar
metals. The eight broad industrial sectors discussed below comprise the bulk
of demand for NobelClad’s products with oil and gas and chemical and petrochemical
constituting approximately two-thirds of NobelClad sales in 2016. This demand
is driven by the underlying need for both new equipment and facility maintenance
in these primary market sectors.
Oil and Gas: Oil and gas end use markets include both oil and gas production
and petroleum refining. Oil and gas production covers a broad scope of operations
related to recovering oil and/or gas for subsequent processing in refineries.
Clad metal is used in separators, glycol contractors, pipe lines, heat exchangers
and other related equipment. Increased oil and gas production from deep, hot,
and more corrosive fields has also increased the demand for clad equipment.
Clad is commonly used in these facilities. The primary clad metals for the oil
and gas production market are stainless steel and nickel alloys clad to steel,
with some use of reactive metals, such as titanium.
Petroleum refining processes frequently are corrosive, hot, and operate at
high pressures. Clad metal is extensively used in a broad range of equipment
including desulfurization hydrotreaters, coke drums, distillation columns, separators
and heat exchangers. The increasing reliance upon low quality, high sulfur crude
drives additional demand for new corrosion resistant equipment. Worldwide trends
in regulatory control of sulfur emissions in gas, diesel and jet fuel are also
increasing the need for clad equipment. Like the upstream oil and gas sector,
the clad metals are primarily stainless steel and nickel alloys.
Chemical and Petrochemical: Many common products, ranging from plastics to
prescription drugs to electronic materials, are produced by chemical processes.
Because the production of these items often involves corrosive agents and is
conducted under high pressures or temperatures, corrosion resistant equipment
is needed. One of the larger applications for clad equipment is in the manufacture
of Purified Terephthalic Acid, a precursor product for polyester, which is used
in everything from carpets to plastic bottles. The chemical market requires
extensive use of stainless steel and nickel alloys, but also uses titanium,
zirconium and tantalum.
Alternative Energy: Some alternative energy technologies involve conditions
that necessitate clad metals. Solar panels predominantly incorporate high purity
polysilicon. Processes for manufacturing high purity silicon utilize a broad
range of highly corrosion-resistant clad alloys. Many geothermal fields are
corrosive, requiring high alloy clad separators to handle the hot steam. Some
ethanol technologies may require corrosion resistant metals at thicknesses where
clad is an attractive alternative.
Hydrometallurgy: The processes for production of nickel, gold, and copper involve
acids, high pressures, and high temperatures; and titanium-clad plates are used
extensively for construction of associated leaching and peripheral equipment.
Aluminum Production: Aluminum is reduced from its oxide in large electric smelters
called potlines. The electric current is carried via aluminum conductors. The
electricity must be transmitted into steel components for the high temperature
smelting operations. Aluminum cannot be welded to steel conventionally. Explosion-welded
aluminum-steel transition joints provide an energy efficient and highly durable
solution for making these connections. Modern potlines use a large number of
transition joints, which are typically replaced after approximately five years
in service. Although aluminum production is the major electrochemical application
for NobelClad products, there are a number of other electrochemical applications
including production of magnesium, chlorine and chlorate.
Shipbuilding: The combined problems of corrosion and top-side weight drive
demand for our aluminum-steel transition joints, which serve as the juncture
between a ship's upper and lower structures. Top-side weight is often a significant
problem with tall ships, including cruise ships, naval vessels, ferries and
yachts. Use of aluminum in the upper structure and steel in the lower structure
provides stability. Since aluminum cannot be welded directly to steel using
traditional welding processes, and since bolted joints between aluminum and
steel corrode quickly in seawater, explosion welded transition joints are a
common solution. NobelClad's transition joints have been used in the construction
of many well-known ships, including the Queen Elizabeth II and modern U.S. Navy
Power Generation: Fossil fuel and nuclear power generation plants require extensive
use of heat exchangers, many of which require corrosion resistant alloys to
handle low quality cooling water. Our clad plates are used extensively for heat
exchanger tubesheets. The largest clad tubesheets are used in the final low-pressure
condensers. For most coastal and brackish water-cooled plants, titanium is the
metal of choice, and titanium-clad tubesheets are the low-cost solution for
power plant condensers.
Industrial Refrigeration: Heat exchangers are a core component of refrigeration
systems. When the cooling fluid is seawater, brackish, or even slightly polluted,
corrosion resistant metals are necessary. Metal selection can range from stainless
steel to copper alloy to titanium. Explosion-welded clad metal is often the
low cost solution for making the tubesheets. Applications range from refrigeration
chillers on fishing boats to massive air conditioning units for skyscrapers,
airports, and deep underground mines.