Rusty Oil & Gas Pipelines Could Drive Molybdenum Price Higher

September 21, 2007 by Walter Schneider.

StockInterview, Inc.

Rusty Oil & Gas Pipelines Could Drive Molybdenum Price Higher, Part One

As long as air conditioners keep us cool in the summer and central heating warms us in the winter, all is well in the world. In order to keep this gas and electricity continuously flowing into our homes, molybdenum has emerged as an essential metal to help preserve challenging energy transportation network. The anti-corrosive qualities found in molybdenum could also help prevent the collapse of the U.S. energy infrastructure….

In the absence of water, hydrogen sulphide is non-corrosive to pipelines. However, increased moisture in pipelines is problematic, because it activates the corrosive capabilities of hydrogen sulphide. A combination of tensile stress, susceptibility of low-alloy steels and chemical corrosion will lead to sulfide stress cracking. Hydrogen ions weaken the steel. Over time, pressure causes the embrittled steel in the pipeline to rupture.

Similar problems have emerged in the natural gas sector. As deeper wells are drilled in hot, high-pressure gas deposits, the probability of hydrogen sulphide in gas can increase. An entire industry has sprung up around decontaminating sour gas. U.S. sulfur production from gas processing plants accounts for about 15 percent of the total U.S. production of sulfur…. (Full Story)

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