Addressing Hydraulic System Reliability Challenges Through Innovation

Transcription

1 Addressing Hydraulic System Reliability Challenges Through Innovation Hans Gerdes Shell B2B Marketing Manager TODAY Dr. Robert Profilet Product Application Specialist

2 DEFINITIONS AND CAUTIONARY NOTE The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation Shell, Shell group and Royal Dutch Shell are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words we, us and our are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. Subsidiaries, Shell subsidiaries and Shell companies as used in this presentation refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Companies over which Shell has joint control are generally referred to joint ventures and companies over which Shell has significant influence but neither control nor joint control are referred to as associates. In this presentation, joint ventures and associates may also be referred to as equity-accounted investments. The term Shell interest is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as anticipate, believe, could, estimate, expect, goals, intend, may, objectives, outlook, plan, probably, project, risks, schedule, seek, should, target, will and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell s 20-F for the year ended December 31, 2012 (available at and ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 10 July Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No , available on the SEC website You can also obtain these forms from the SEC by calling SEC

3 Speakers Hans Gerdes Shell Lubricants B2B Marketing manager Techno-Commercial Oil professional with over 20 years lubricants experience Chemical Engineering, Berlin University of Technology MBA Studies, Vancouver, Canada In free time, active soccer referee, finisher in several marathons, sailing

4 Speakers Dr. Robert Profilet Product Application Specialist 22 years industrial lubrication experience Ph.D. Chemistry, Purdue University Was Visiting Asst. Professor of Chemistry at Texas Tech Enjoy golfing and traveling

5 Key learning objectives: Gain insights into trends in the hydraulics market and how these impact lubrication Discuss the reliability challenges facing operators of hydraulic applications and the role lubricants play in addressing these challenges Understand how continuous technological innovation in hydraulic fluids and condition monitoring can improve reliability and reduce maintenance costs of hydraulic equipment

6 Hydraulic Market & Sector Dynamics 1 Photo courtesy of K.Jitpakorn, Thailand (Flight Simulator)

7 How much hydraulic oil is consumed Hydraulic Oil > 50% of industrial lubes market Total consumption 3.8 bln liter of hydraulic oil Estimated consumption 2020: 3.95 bln liter Annualised growth rate of 0.6% only till 2019 How much is 3.8 bln liter?! = liter If filled into Road Tank Cars and bumper-to-bumper, the line would be 1800 km/1000 miles long, e.g. Chengdu to Beijing Washington DC to Kansas City Hamburg to Naples or London Warsaw Delhi to Goa

8 What is being used Tiering of hydraulic oils & trends Synthetic (incl. fire-resistant), 10% Mineral AW other, 8% Biodegradable, 2% Mineral AW ISO VG 46, 32% Oil Life Premium 5% EE, Low Temp Differentiated Mainstream 30 % e.g. BR 90245, and/or ash-free Mineral AW ISO VG 32, 18% Mainstream Tier 50 % DIN/ ISO, FZG, + OEM, e.g. Eaton, Parker Source: Kline & Company, 2015 AW: Anti-wear VG: Viscosity Grade Mineral AW ISO VG 68, 30% Entry Tier 15 % DIN/ISO or below

9 Who consumes hydraulic oils & trends till 2019 by region: by country: S. America 8% (+1.6% CAGR) ROW 9% Asia Pac 40% 20% 18% Hydraulic Fluid Consumption [%] N. America 21% (+0.7% CAGR) Europe 22% (+0.2% CAGR) (+0.5% CAGR) 16% 14% 12% 10% 8% 6% 4% 2% 0% Total Demand: kt, or 3.8 bln liter Source: Kline & Company, 2015 CAGR: Compound annual growth rate

10 Who consumes hydraulic oils by sector: Hydraulic Fluid Intensity by sector: Others, 37% General Mft, 16% Transport Equip't Mft, 13% Chemicals, 10% Metals, 11% Mining, 13% Total Demand: kt, or 3.8 bln liter Source: Kline & Company, 2015 (*) Percentage of total industrial lubricant demand, automotive lubes not included

11 Who supplies hydraulic fluids Source: Kline & Company, 2015

12 Challenges for Hydraulic Systems and Fluids 2 Photo courtesy of Johannes Ruf, Germany (Tunnel Boring Machine)

13 Top 5 Hydraulic Mistakes #1: Hydraulic pressures are improperly set #2: Lack of accumulator and hydraulic safety procedures #3: Poor troubleshooting techniques #4: Poor hydraulic reservoir and oil maintenance #5: Component replacements don t have the same part numbers Source: machinerylubrication.com July 2016

14 Identified customer wishes Longer Oil Life Longer Equipment Life System Efficiency

15 Therefore a modern hydraulic fluid has to work VERY hard Modern hydraulic systems are more compact and operate at higher pressures Operating pressures continue to increase (from 350 bars to 500 bars) Pump running speeds increased up to 4000 rpm Reservoir sizes continue to shrink retention time in mobile equipment can be down to less than 1 minute A modern hydraulic fluid, in order to protect the modern systems and minimise downtime and unplanned maintenance, has to have: Extremely good antiwear properties Very good oxidation and thermal stability Very good surface properties (air release, demulse, foaming and filterability)

16 Basic Specifications Largely Unchanged ISO provides essential foundation for a basic hydraulic fluid From the base oil From the performance additives Basic viscometrics Demulsibility Foam control Air release Elastomer compatibility Oxidation stability Anti-rust Copper protection Wear protection Filterability

17 Eaton & Denison Evolution Eaton Various specification evolutions over many years. M-2950 S and I-286 S combined into Brochure 694, then subsequently to current E-FDGN-TB002-E with its additional bench performance tests. Common throughout is the 35VQ25 pump test (ATS 373 and ASTM D6973). Now requires additional bench performance, including higher FZG (FLS 11) and additional seal data (*) Denison HF-0 adds more varied bench requirements, and more demanding hybrid pump (T6H20C) with both vane & piston pumps. New specification evolving slowly, but not expected before (*) FLS (Failure Load Stage) in FZG (Forschungsstelle für Zahnräder und Getriebebau, Research Centre for Cog wheels & Gears, part of Uni of Technology, Munich)

18 Bosch Rexroth Evolution RDE basic DIN performance, self-certifying by oil marketers, now declared obsolete 2013: Two-tier system introduced RDE Basic Level List (fluid rating based on DIN & DIN , plus additional performance requirements) RDE Premium Level List (Basic Level passed plus additional pump test) 2015: Simplified single level approval system Following very limited industry take-up of two tier approach RDE Bosch Rexroth Fluid Rating List Modified approval process with simplified bench testing requirements (RDE 90235) but RFT-APU-CL(*) fluid test bench is now mandatory for all listings. (*): RFT-APU-CL: Rexroth Fluid Test, Axial Piston Unit, Closed Loop

19 Bosch Rexroth RFT-APU-CL Rig Test Bosch Rexroth RFT-APU-CL rig test applies very high stress to equipment and hydraulic fluid under lab conditions. Rig is a closed loop using a combination of hydraulic pump A4 VG045 EP and hydraulic motor A6VM060 EP Rating criteria are Component weight/dimensional change Visual inspection Oil Analysis Material compatibility Determination of efficiency Three phase test Break-in (10 hours) 250 bar 2000 rpm Nominally 60 C Swivel cycle (300 hours) 450 bar 4000 rpm Nominally ca. 100 C Pump varies between 50% and 100% displacement every 6 seconds (see next slide) Corner power (200 hours) 500 bar 4000 rpm Nominally ca. 100 C Steady state conditions These are tough conditions for any fluid, particularly for the ISO VG 32 tested (< 7 cst at test temperature)

20 Bosch Rexroth RDE approval Shell Tellus S2 MX is one of the first hydraulic fluids to market with the new Bosch Rexroth Fluid Rating List RDE The new Bosch Rexroth test (RDE 90245) increase stress factor by 13 times* *Compared with legacy pump which is the Eaton 35VQ25 test, widely recognised as a typical mainstream hydraulic fluid qualification Webinar: New Challenges generation & Innovation Shell Tellus in S2 Hydraulics MX & VX

21 Benefits of Shell Tellus S2 MX 3 Webinar: New generation Challenges Shell & Innovation Tellus S2 MX in Hydraulics & VX Photo courtesy of June Matthias 2016 Monien, Germany 21

22 A good hydraulic oil is like a gold winning decathlete Easy to outperform competition in one discipline Difficult to perform well in all areas important to users Best overall performance wins! Wet Filterability Sludge Viscosity Change Water Sep TOST 1000h IOC Hydraulic Oil Hydrolytic Stability IOC: International Oil Company RPVOT: Rotating Pressure Vessel Oxidation Stability Test TAN: Total Acid Number TOST: Turbine Oil Oxidation Stability Test RPVOT TAN change Shell Tellus S2 MX

23 Longer Equipment Life Excellent performance in severe Bosch Rexroth test (RDE 90235) Shell Tellus S2 MX Typical pump piston Competitor fluid End of test hydraulic pump components, Shell Tellus S2 MX compared with a typical market competitor. Shell Tellus S2 MX Typical pump piston bore Competitor fluid Shell Tellus S2 MX Pump swash plate Competitor fluid

24 Longer Equipment Life Excellent performance in severe Bosch Rexroth test (RDE 90235) Shell Tellus S2 MX Motor centre pin Competitor fluid End of test hydraulic motor components, Shell Tellus S2 MX compared with a typical market competitor. Shell Tellus S2 MX Motor piston Competitor fluid Shell Tellus S2 MX Motor piston bore Competitor fluid

25 Longer Equipment Life Benefit from wear protection Denison T6H20C Excellent in protecting your pump whether in wet or dry condition Shell Tellus S2 MX helps to reduce wear rate even in harsh environments* Typical Piston Valve Plate Cam Ring *compared to Denison T6H20C hybrid test (wet and dry conditions) test limit

26 Longer Equipment Life Benefit from wear protection Eaton 35VQ25 Shell Tellus S2 MX is designed to protect your equipment with up to 55% lower wear rate in cam ring* and up to 65% lower wear rate in vane* based on Eaton 35VQ25 test Benefit: Lower component wear longer equipment life potentially lower cost Shell Tellus S2 MX OEM limit Cam Ring Less than half the wear limit specified by Eaton Vanes * compared to the OEM wear test Eaton 35VQ25 (E-FDGN-TB002-E) limit Lower is better Total wear, mg

27 Longer Equipment Life Benefit from wear protection Eaton 35VQ25 Excellent performance in equipment protection Benefit: potentially less replacement cost better ROI (return on investment) Cam Ring Inlet Flex Side Plate Typical Vane and Intravane Outlet Flex Side Plate

28 Longer Equipment Life Benefit from excellent FZG Performance Shell Tellus S2 MX provides excellent scuffing protection for your equipment Benefit: less wear potentially less replacement cost (FLS) FZG: Forschungsstelle für Zahnräder und Getriebebau, Research Centre for Cog wheels & Gears, part of University of Technology, Munich)

29 Longer Oil Life Benefit from long life ASTM D943 TOST Life Shell Tellus S2 MX achieved up to two times longer* oil life than Shell Tellus S2 M and three times longer* oil life than the industry minimum Shell Tellus S2 MX has a Turbine Oil Oxidation Stability Test (TOST) life of 5000 hours* *Compared ASTM D 943 test, twice the life of Tellus S2 M, and three times that of typical industry and OEM limits.

30 Longer Oil Life Benefit from long life good RPVOT Life (ASTM D2272) across all viscosity grades Benefit: Shell Tellus S2 MX is enhanced with longer* oil life less oil changes less maintenance/lubrication cost RPVOT: Rotating Pressure Vessel Oxidation Stability Test *Compared in ASTM D2272 RPVOT test where Tellus S2 MX achieves 400 mins, and Tellus S2 M achieves mins

31 Coefficient of Dynamic Friction System Efficiency Benefit from outstanding efficiency lubricity for control of stick slip Smooth performance in systems with Shell Tellus S2 MX with excellent stick slip* control 0.50 High friction reference fluid Screening the friction behaviour of a typical hydraulic cylinder (in-house modification of ASTM D1894) Urethane rubber seal in contact with chrome plate steel Shell Tellus S2 M 46 Shell Tellus S2 MX 46 Shell Tellus S2 VA 46 (Detergent hydraulic) Shell Tellus S2 V 46 Shell Tellus S2 VX kg test load (0.18 MPa) Sliding speed 0.21 mm/s Coefficient of Static Friction *compared with Shell Tellus S2 M relatively in lab screener test- ASTM D1894 stick slip test, in-house friction rig

32 Already out in the field today ( 5 countries- 8 applications ) All field trials (8 applications in 5 countries) are running smoothly as of end June 2016 Two industrial and 6 mobile applications in China/India/Germany/UK/Turkey Injection molding applications in Germany and Turkey already exceed 3000 hr All mobile apllications exceeded 1500 hr. In mobile applications the operating conditions are demanding Tata Hitachi excavator India in a quarry Two identical XCMG excavators in China Three applications in UK, two JCB telehandlers and a log grader at timber merchants North Wales

33 Shell Tellus leader since

34 The Year 1947 important to Shell and the world What happened in the world India became independent IMF becomes operational Marshall Plan launched World s first video game First man in a supersonic flight Camilla (Duchess of Cornwall), Elton John, Paulo Coelho, Dick Fosbury born What happened in the world of hydraulics Shell Tellus registered as oxidation & rust inhibited hydraulic oil Using the name of seashell Ensiculus Cultellus

35 Some Shell Tellus History 1947 Introduced as Rust and Oxidation inhibited hydraulic lubricant 1960 Enhanced with wear protection 1960 s Formulation was branded as Shell Tellus C, now sold as Shell Morlina 1983 Formulation improved in parallel with Industry requirements 1988 Formulation upgraded, having better filterability and thermal stability 2004 Shell patented new formulation meeting the demands of high tech equip t 2010 Former Shell Tellus/ Tellus T become Shell Tellus S2 M/ S2 V resp launch of new generation Shell Tellus S2 MX and Shell Tellus S2 VX 2017 TODAY

36 Summary Hydraulic equipment lubrication provides unique challenges OEMs have increased demands in ever shorter cycles Continuous innovation in hydraulic oils, coupled with effective service elements such as oil condition monitoring and staff training can help in reducing Operating and Maintenance costs and improve equipment component reliability Shell is well placed to address these challenges with product and service offers

37 Questions and Answers Photo courtesy of Steve Greenall, UK

38 Contact Us All feedback to: Hans Gerdes Technical Support: Thank You

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