A multilayered approach to pipeline theft: social & economic, law & order and technology

A multilayered approach to pipeline theft: social & economic, law & order and technology

Harry Smith , Sales and Senior Research Engineer


The growing challenge of pipeline theft

Pipeline theft has always been a global problem, but as pipeline thieves become more experienced, the equipment they use is becoming more sophisticated and their methods more complex.

Because the cause of pipeline theft differs across the world, each region is impacted by the crime in a different way and some are more heavily impacted than others. For example:

  • Africa estimates losses of around 115,000 oil barrels per day (1)
  • In Asia, three million liters of fuel is smuggled daily from Malaysia to Thailand (2)
  • A Mexican drug cartel can make around 90,000 USD in minutes just from pipeline tapping (3)

Atmos has detected over 2,000 pipeline thefts globally and as leaders in both leak and theft detection, we believe that a multilayered approach can effectively reduce theft activity, anywhere in the world.

Image of a wheel containing Atmos' multilayered approach to pipeline theft, which includes social & economic, law & order and technology

But what do each of these layers mean? Here we’ll take a further look at the three point approach to reducing pipeline theft, including:

  • Social & economic
  • Law & order
  • Technology

Social & economic

“Social change initiatives can deter members of local communities from joining pipeline theft operations in the future”
Image of a wheel segment containing Atmos' social & economic approach to pipeline theft, which includes understanding the people stealing and why, introducing social change and education on the pipeline

To successfully adopt a multilayered approach to pipeline theft detection, it’s vital to understand not only how thieves are stealing, but why they are stealing too.

Pipeline theft in Latin American and African countries is driven by socioeconomic factors such as high unemployment rates and poverty. To add to this, pipelines can run through remote areas and have a weak infrastructure, which makes theft easier for opportunists.

In Asia and the Middle East, pipeline theft remains a popular organized crime due to fuel price in some countries being much higher than in others. This type of economic strain presents an opportunity for organized crime groups to smuggle fuel in and sell it at a reduced price.

Organised crime groups are also known for corrupting people who live or work close to pipelines. For example, Mexican drug cartels often use violence and threats to pressurize pipeline company workers to give them information that will help them steal the oil.

Social change initiatives can deter members of local communities from joining pipeline theft operations in the future. We often see pipeline operators in these countries investing in education for the local communities and funding school activities. Additionally, educating communities on the subject of pipeline theft is another approach to reducing it.

Law & Order

“The legal impact of pipeline theft can lead to the loss of millions of dollars in revenue each year due to safety breaches such as spills and explosions”
Image of a wheel segment containing Atmos' legal approach to pipeline theft, which includes government police backing, strict punishment (eg jail time) and environmental law

Pipeline theft is criminal by nature, but it can expose pipeline operators to strict punishment too. Illegal tapping points are often poorly crafted, leak product and present a risk of rupture.

The legal impact of pipeline theft can lead to the loss of millions of dollars in revenue each year due to safety breaches such as spills and explosions, resulting in fines and clean-up costs which can cost more than the product stolen by thieves.

For this reason, an approach that considers strict punishment for criminals, government police backing and environmental law should form part of a multilayered approach to pipeline theft, so that pipeline operators can mitigate the legal risk to themselves while ensuring criminals face the full extent of the law.

Technology

“It’s common for product thieves to change their methods and locations to avoid detection”
Image of a wheel segment containing Atmos' technology to pipeline theft, which includes continuous improvement, external methods and internal methods

Technology is key for the success of a multilayered approach to theft detection to provide pipeline operators with the data they need and alerts when thefts occur.

Because the size and duration of each theft can be below the flow meter detection limit, it’s important to use internal methods for detection that include elements from both volume balance and negative pressure wave (NPW). Solutions such as Atmos Wave Flow use both to reduce uncertainty and improve performance.

Internal methods can be supported by external methods of detection including physical line walks, sniffer dogs to smell out the chemicals leaking into the soil and terrain and the use of drones, helicopters, satellites and visual technology to survey pipelines quickly, particularly those in remote areas.

It’s common for product thieves to change their methods and locations to avoid detection. To evolve faster than thieves’ techniques, a technological approach to pipeline theft detection systems should be in a state of continuous improvement.

How to take action now

Ultimately, to tackle pipeline theft detection systematically all parts of the multilayered approach need to be addressed. One aspect that pipeline operators can take immediate and proactive action with is the implementation of theft detection technology that is effective in detecting every theft event, providing an accurate leak location and responding quickly.

Learn more about Atmos’ theft detection solutions

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References

(1) https://www.tandfonline.com/doi/full/10.1080/17440572.2021.1925552

(2) https://www.atmosi.com/en/resources/ebooks/global-pipeline-theft-detection-ebook/

(3) https://oilmanmagazine.com/article/oil-theft-a-frightening-international-perspective/

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