Size alone underestimates the advantage

Joe Mastrangelo
General Manager, Units

It is true that the size of the GE organization provides certain flexibility and stability in terms of finances and project investment, manufacturing, distribution and worldwide staffing. These are all important characteristics of our organization – but they are merely facts of business and economics. The real advantage we offer customers is the power of our science.

Compared to any other single company in the industry, GE’s Oil & Gas business offers the broadest range of specialized products and services available. To this breadth we add the unparalleled depth of technological research and development that is possible through our position within the larger GE Infrastructure organization.

The amount of ‘high-tech’ to which we have access is literally staggering. And we bring this resource, with all its strength, to every challenge we face with every one of our oil and gas clients. There are no exceptions.

Gas turbine technology

One area that clearly demonstrates this advantage is our portfolio of gas turbines. For instance, our line of aerodirivative turbines draws on technology from GE Aviation’s industry-leading business in Cincinnati, Ohio. We also incorporate advancements in heavy duty turbine design and engineering from the GE Energy business in Atlanta, Georgia. Dedicated teams in these and other locations continually build on the solid 50-year foundation established by Nuovo Pignone in Florence, Italy.

We are one of the world's leading suppliers of both mechanical-drive and generator-drive technology, giving customers reliable and robust machines with world-class efficiency. The ability to handle different fuels, low emissions and a range of standard options makes our turbines ideal for applications such as natural gas plants, oil and gas transmission, natural gas liquefaction, petrochemical plants and power generation.

Referenced technology

As we continually redefine and invest in the gas turbine family, just as we do with all our other major technologies, it is extremely important to note that each innovation is based on decades of proven, fully referenced technology. At no point do we ask our customers to absorb the risk of testing unproven technologies. We have an intimate understanding of our client’s operations, and we make strictly calculated, incremental steps forward with each new piece of technology – knowing that a tiny step in machine design often translates into a significant leap in plant productivity.

Two examples of this approach are our PGT25+G4 which offers the most power and highest thermal efficiency in its class (this technology is now in its 4th generation), and our Frame 5E, a 32-MW machine designed in response to customer requests for lower fuel consumption and reduced emissions (technology now in its 3rd generation). The latest Frame 5 turbine is also an excellent example of how our oil and gas solutions leverage the strengths of the entire GE organization.

Industrial plant design

Since 1963, we have provided integrated industrial plant solutions for the upstream, midstream and downstream industry segments. We offer turnkey solutions for stand-alone compression islands, stations and modules, as well as balance of plant equipment, for both onshore and offshore applications. Our services include system engineering, comprehensive manufacturing, project management, startup and commissioning. We design the most efficient, integrated solutions, tailored to meet each customer’s specific requirements.

Since being awarded the first Algerian injection station project in 1971, this group has been a technological leader for gas injection applications. The discharge pressure of 621 Bar in Venezuela is still the world record. Sour gas injection with increasing H2S content and increasing discharge pressures represents the technology trend today. An injection station operating at 550 Bar with 5% H2S has been in successful operation since 2003, and we are now developing an application with 18% H2S content at the record discharge pressure of 760 Bar.

Compressor technology

Our Global Research Center in Schenectady, New York is GE’s original, and still one of our primary R&D centers. It is an extremely large, advanced facility, staffed by highly qualified world-class engineers and scientists. These teams have increased proven compressor efficiency 2-6% over the past 5 years through flow path improvements, and improved manufacturing processes (3D impeller design, single-piece forged steel impellers, etc.). We have also improved inspection processes for testing and verifying compressor performance by leveraging ultrasonic technology from GE Healthcare, as well as and technologies designed in Schenectady specifically for oil and gas applications.

GE designs and manufactures a complete range of compressors. Our centrifugal units are used in production, transportation, refinery and petrochemical industries, fuel gas boosting and similar applications. Our milestones include the first high-pressure compressors for ammonia and urea plants, the most powerful compressors for offshore applications over 30,000 HP, and re-injection compressors with delivery pressures as high as 10,000 psi (700 Bar). We also design and manufacture a full line of reciprocating, rotary screw and rotary vane compressors that offer leading-edge features in all their application areas, from surge-free performance to high pressure capacities and extremely corrosive gas handling.

Advanced relationships

I wrote that we bring our technological strength to bear on the challenges we face –  not for, but with our clients. This ideology is just as important as our technology, and it is another characteristic that sets GE apart. We invest considerable time, money and effort in developing strong customer relationships.

Frame agreements

Claudio Materazzi said it best at our Annual Meeting – that a GE frame agreement is not a contract for goods and services, but a partnership for growth. Size, stability and experience enable us to deliver on this philosophy with customized agreements for everything from new equipment installations to comprehensive long-term, multi-site maintenance services.  A key objective for both parties is to eliminate redundant administrative activities that eat up time and budgets on a project-by-project basis, as well as stabilizing cost-time sensitivity as markets mature.

There are also what I like to call operational and informational advantages. A GE frame agreement gives our customers the technological breadth and depth discussed earlier – to the full benefit of all their equipment and processes. And, by working closely together, there is an incredible opportunity to share in the development and rewards of tailored technologies that could not exist without such a concerted effort.

Planning and processes

We know that philosophy is nothing without a practical framework that will allow great ideas to thrive. So our processes are designed and measured in just such a way. Our Quarterly Rhythm process involves regular, in-depth discussions with customers to clearly evaluate the performance of existing products, gather feedback and establish benchmarks for future enhancements. These include a series of meetings and on-site technical evaluations.

We also participate in regular Sensing Sessions with customers, where we actively work to identify and anticipate future needs based on industry trends, current technological limitations, demand and supply forecasts, and numerous other outlooks. This information helps us develop new product initiatives to better meet these needs. We rely heavily on customer feedback to prioritize R&D investment in order to ensure that industry needs will continue to be met in the future – and to ensure that new products are based solidly on our customers’ requirements for them. The unprecedented leap to our 8 MTPY LNG supertrain was a direct result of this process.

The frequent incorporation of Energy, Aviation and Healthcare technologies for oil and gas applications are not happenstance –  but planned, coordinated efforts. They are the result of our Technology Sessions, which are regular internal reviews established as part of the GE strategic planning process. These sessions ensure that inputs and efforts for all advancements are shared efficiently throughout the entire organization. Senior representatives from each business meet on a regular basis to review R&D and new product initiatives. This guides the long-term forecasting of technology requirements and capabilities, as well as the allocation of resources to ensure that new heights can be reached.

In summary

I’ve tried to cover a lot of ground in this article, but have really just scratched the surface. Because at any given moment, there are literally thousands of GE employees worldwide searching for the next big idea in oil and gas. Each discovery is nothing short of exhilarating – fuelling our drive, and that of our customers, for even greater achievements in the times ahead.