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    Profire Energy, Inc.

    Training

    Handbook 1Handbook 1.1

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    Profire Energy, Inc.

    Name

    Hire Date

    Position

    Office Location

    Contact Number

    Profire Energy, Inc.

    321 South 1250 West

    Lindon, UT 84042

    Phone 801-796-5127 Fax 801.785.5455www.ProfireEnergy.com

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    Table of Contents

    Table of Contents..................................................................................... .......................................2

    Introduction & Training Modules Overview ................................ ......................................... .............3

    Training Modules ............................................................... ......................................... ....................3

    Modules Progress .............................................................. ......................................... ....................4

    COMPANY INTRODUCTION 5

    Profires History..............................................................................................................................5

    Profire Today ........................................... ................................................. ......................................6

    INDUSTRY INTRODUCTION 7

    General Information ................................................. ............................................... .......................7

    Widespread Use of Oil & Natural Gas .......................................... ............................................... ..7

    Supply & Demand of Energy......................................... ............................................... .................8

    The Burner Management Industry: Wellsites ................................................................................9

    The Burner Management Industry: Pipelines.................................................................................9

    How the Industry Processes Oil/Natural Gas ................................................................................... 10

    Major Industry Processes .................................................................................... ....................... 11

    Fuel Trains........................................ ............................................... ......................................... .... 13

    Electric vs. Pneumatic .......................................... ............................................... ....................... 14

    The Role of a Burner Management System (BMS) ........................................................................... 16

    Pilot & Burner Setup ................................ .............................................. ....................................... 17

    Flame Ionization/Rectification................................................................... ................................. 19

    Sensing Temperature in an Application ............ .................................................. ............................ 21

    Electric vs. Pneumatic .......................................... ............................................... ....................... 21

    Piping & Instrumentation Diagrams ......................................... ............................................... ....... 22

    Current Issues & Alternative Energies ............................................. ............................................... 23

    Energy Independence .......................................... ............................................... ....................... 23

    Potential Legislation ............................................ ................................................. ..................... 24

    Alternative Fuels ....................... ......................................... .............................................. ......... 25

    Summary of Module 1................................................................ ........................................ ........... 26

    BIBLIOGRAPHY 27

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    Introduction & Training Modules Overview

    Welcome to Profire Energy! Profire Energy is a public company that creates burner management

    technologies for the oil/natural gas sectors.

    One of the primary reasons we have experienced such incredible growth is our extensive industry

    expertise. Years ago, our founders--Brenton Hatch and Harold Albertidentified a void in the industrythat was in need of modernization: burner management in the oi l/natural gas sectors. Workers in this

    industry were reigniting extinguished flames with sticks that had flaming rags on the end (most still do).

    After designing a simple system that would ignite these burners, Profire Energy was born (although it

    was first called Profire Combustion).

    Because our expertise is so critical to our continued success, we help each employee understand the

    industry and our products. Whether youre a senior engineer or a business intern, weve found that

    those who learn about our productsand the industryare able to do much more than those who

    dont.

    You dont have to learn everything (well, unless youre a service tech), but everyone has to learn some

    things. Just see the Training Progress sheet (in the next section) to see which training modules youll be

    mastering in the coming weeks.

    We want to help you become an exceptional Profire Energy employee, so dive right in--and ask us

    questions as you go!

    Training Modules

    There are three modules in our training program. Each is more comprehensive than the previous, and

    you must pass the previous module before advancing. The employees that must pass each respective

    module are illustrated below:

    Module 3Service Techs

    Module 2Sales staff

    Engineering staff

    Management staff

    Module 1All Profire employees

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    Modules Progress

    Note: Topics with an application box must be passed off by a corporate trainer. A list of corporate

    trainers can be obtained from your supervisor.

    MODULE1 Read? Application

    Company Introduction history todayIndustry Introduction

    general information how the industry processes oil/natural gas fuel trains the role of a BMS pilot & burner setup sensing temperature in an application piping & instrumentation diagrams current issues & alternative energiesMODULE 1 ONLINE TEST PASSED (date):

    MODULE 1 APPLICATION TEST PASSED (date & initials):

    MODULE 1 COMPLETED (date):

    To begin Module 1, go to the next page!

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    Company Introduction

    Profires History

    Over 10 years ago, in 2002, Brenton Hatch and Harold Albert saw a need in the oil & natural gas

    industry, and set out to fix it. The industry was spending a lot of manpower, time, and money to manage

    the burner [flame] that was used to process oil/natural gas in the oilfields1. The remote Canadian

    oilfields where these burners were located required significant travel time to reach, and the methods

    used to service the burners were archaic and antiquated. For example, when a burner went out, a

    serviceperson would need to discover it, and then reignite it manually. This was done using a stick with a

    flaming rag at the end of it (the rag would be soaked in WD-40, lit on fire, and then extended into the

    application). This method was extraordinarily dangerous because without the burner flame to burn the

    fuel , the fuel would just fill the area enclosing

    burner, creating a very dangerous

    environment for anyone trying to reignite the

    burner. Industry workers have been injured

    and even killed while trying to reignite a

    burner in this way.

    So Brenton and Harold decided to change that.

    They created a system that would monitor the

    flame inside these applications, detect when

    the burner flame went out, and reignite it

    automatically. Not only did their system

    prevent workers from doing something

    dangerous, but it also prevented the raw gas

    from spilling needlessly inside the vessel whenthe flame went out, since it was reignited almost instantly by Brenton and Harolds system. They started

    Profire Combustion in 2002 and had great success. In 2008, the company became public, and was

    renamed Profire Energy. We continue to make burner management systems (BMS) todayand much

    more!

    1Dont worrya detail ed descri ption of burners and their purpose i s provided la ter in this module.

    Figure 1-Pumpjacks Pumping Oil

    Image drawn from: byfieldconsultancy.com

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    The 2010 BP oilspil l spewed 200million gallons of

    crude oil into theGulf of Mexico.

    Did youknow?

    Profire Today

    Today, our products help the industry by increasing operational efficiency, reducing costs, reducing

    emissions/waste, and improving safety, all of which are very valuable for our customers. We have

    received numerous awards for our strong growth and financial management, and are a debt-free

    company. We have offices in Edmonton, Alberta; Lindon, Utah; and Houston, Texas. Our products are

    used around the world, and we expect to continue our pattern of significant company growth.

    Our key business drivers (i.e. the reasons why people buy our products) are simple, but significant:

    1. Environmental regulation: our products help reduce wasteful emissions, by controlling fuel flowand temperature setpointsand even air mixture.

    2. Financial efficiencies and lower costs: a more efficient system is cheaperto operate. This saves money for the customer.

    3. Employee safety: our system automates many tasks that have typicallybeen done by workers, including the dangerous rag and stick method.

    Because our products help companies in these areas, they provide significant

    value to the industry.

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    Data drawn from the US EIA

    Figure 2-The Uses of Petroleum

    Industry Introduction

    General Information

    Widespread Use of Oil & Natural Gas

    Oil and natural gas are valuable resources in our world today. Both are widely used for a variety ofpurposes, like fueling engines, heating homes, making asphalt, creating lubricants, and much more. In

    fact, most of the worlds largest

    companies are oil/natural gas companies,

    and the company that is leading the way

    for this industrys burner management is

    Profire Energy.

    Oil/natural gas provide a significant

    amount of energy to the world. In the

    United States, about 65% of all energy is

    from oil/natural gas (EPA, 2012). In total,

    oil refineries in the United States process

    more than 18 million barrels of oil per day

    (EPA, 2012) and there are 4,000

    oil/natural gas platforms operating in U.S.

    waters alone.

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    Supply & Demand of Energy

    The world demands a lot of oil --so who produces it? Currently, there are three major oil producers in the

    world: Saudi Arabia, Russia, and the US. These countries produce, respectively; 11.1 mill ion, 10.2 mil lion,

    and 10.1 mill ion barrelsper day! Behind these major producers are countries l ike China, Iran, and

    Canada, which produce 3-4 million barrels per day.

    So how is oil/natural gas used in the industry? Figure 3 (at left) shows the distribution of energy in the

    US. Canada has a very similar distribution (except for Canada uses much more hydroelectric power):

    As you can see, oil/natural gas play a big part in providing energy for the U.S. and the worldthats why

    Profire Energys potential for growth and profitability is so immense. In fact, weve already grown so

    quickly that the International Business Times recognized us as one of the 1000 fastest -growing

    companies in the world (#380)2.

    2See Profire Energy press release January 23, 2012.

    Image drawn from the US EIA

    Figure 3-Energy Sources for Sector Use in the US

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    Figure 4-An Oil Well Site

    Image drawn from www.us.123rf.com

    The Burner Management Industry: Wellsites

    One of the areas our products are used is at wellsites, which is the general area where the oil/natural

    gas surfaces from the earth. Because of this, we are very interested in how many wells there are in

    North America. The most recent official data on the number of wells is below:

    Number of gas-producing wells in US is about 490,000 (EIA, Producing Gas Wells, 2011) Number of oil-producing wells in the US is about 530,000 (EIA, Total Energy, 2011) Number of gas-producing wells in Canada is about 115,000 (Provincial data, 2012) Number of oi l-producing wells in Canada is about 185,000 (Provincial data, 2012)So, in total, there are about 1.3 million oil/natural gas wells in North America. This data is important for

    us because it gives us a general idea of how large the market is for our products.

    The Burner Management Industry: Pipelines

    Our products can also be used to manage burners for applications used in the transportation

    (midstream) processes. One example of a midstream application is a line heater (see Figure 8), which

    heats the oil/natural gas that is being

    transported through pipes (for an

    illustration of industry processes, see

    Figure 7).

    Although some pipelines are used for

    transporting oil, most of the industry

    pipeline in North America is used for

    transporting natural gas (unl ike natural

    gas, oil can also be transported in

    trucks). Most often, the purpose of heat(and therefore, burners) in the

    midstream processes is simply to keep

    the oil/natural gas warm so it can flow

    easily through the pipeline. Without such

    heat, the oil in the pipes can become too

    thick to flow properly--and the natural gas can freeze. This is why burnersand good burner

    managementis so important.

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    How the Industry Processes Oil/Natural Gas

    When oil/natural gas is extracted from the earth, it has a long way to go before it can be used to power

    a car or heat a home. The first thing that often happens when the oil/natural gas is extracted is the

    separation of the oil from the natural gas. For

    example, oil that is found in the rocky mountain

    region of the US often contains paraffin (i.e. wax),

    and oil in the southern US is often very watery. Such

    elements must be removed before the oil/natural gas

    can be sold. After these elements are removed, heat

    can also be used to help transport and store the

    oil/natural gas.

    After a well is drilled, it will either produce oil and

    natural gas, or just natural gas alone. A helpful

    illustration is shown in Figure 5, at right, where you

    can notice that the natural gas rests on top of the oilreserve. The reason for this is very simple: the gas is

    lighter than the oil, and thus settles on top of it. So

    when a new well is drilled, they can extract the

    natural gas right off the top of the well, orthey can go

    deeper into the earth to extract the oilpicking up some natural gas with it.

    Want to learn more about the drilling process?Click here.

    Image drawn from: Geology.com 1

    Figure 5-Natural Gas & Oil Layering

    http://www.youtube.com/watch?v=DniNIvE69SEhttp://www.youtube.com/watch?v=DniNIvE69SEhttp://www.youtube.com/watch?v=DniNIvE69SE
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    Figure 7-An Illustration of Profire-relevant Processes

    Image drawn from: http://www.tonylinka.com

    b

    a

    d

    d

    a

    A visual i llustration of the production, transportation, and refinement processes is shown below:

    a) After a well is drilled, crude oil/natural gas is extracted from the earth and surfaces at the wellhead. The area around the well itself is typically called a well -site, or apad (see Figure 4). An

    alternative extraction site is shown at-sea.

    b) When the crude oil surfaces, it (often) first goes through a separator, which uses gravity andheat to separate the oil from the natural gasand water. At this point, a different company

    will deal with each product: one will manage

    the oil from the wellhead (i.e. drive it to a

    refinery), one wil l manage the natural gas (i.e.

    pipe it to a refinery), and one will manage the

    water (i.e. drive it to a processing site for

    evaporation).

    c) Transportation to Refinery: The oil/natural gasis transported to a refinery. Oil is usually

    transported via truck, while natural gas istransported via pipe. Appl ications (e.g. line

    heaters) are installed along the pipeline to help facilitate efficient transportation of the

    oil/natural gas (see Figure 8).

    d) Delivery to End-Users: The finished oil is transported to local areas for use, and the natural gas ispiped to local areas for use.

    c

    Figure 8-A Line Heater

    Image owned by Profire

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    Photo owned by Profire

    Figure 9-A Profire Burner Management System Monitors a Fuel Train & Application

    12

    3

    4

    Fuel Trains

    In order to process

    oil/natural gas, a

    flame is needed to

    provide heatbut in

    order for that flame

    to be li t (and stay

    burning), a supply of

    fuel is needed.

    However, the piping

    that supplies these

    applications with fuel

    isnt just a simple

    pipeits actually an

    arrangement of pipes

    that has valves,

    gauges, and

    mechanisms that

    measures and

    controls the amount

    of gas flowing into

    the application. Such an arrangement of pipes is called a fuel train, and is a critical part of a safe

    combustion system.

    Figure 9 shows a fuel train that is being managed by a Profire 2100 Burner Management System (BMS).

    In this case, the flow of fuel through the fuel train would be from right-to-left. The main fuel train

    components are described below:

    1. Two solenoid valves (the green valves) stand ready to choke off the gas to the application, incase of a problem. These are also called safety shutoff valves, and will shut off the flow of gas

    through the train if a major problem is detected. When this fuel flow is stopped, fuel no longer

    enters the combustion application, and the burner flame goes out.

    2. A PF2100 BMS (the grey box) monitors and manages the fuel train, as well as the combustioninside the application. The PF2100 BMS uses the information it receives from the fuel train and

    the applications combustion (e.g. flame status) to create optimal conditions for combustion,

    restart the system in case of burner failure, as well as shut off the system entirely if a majorproblem is detected.

    3. Flame arrestor housing (the aluminum cylinder) houses the mixer (where fuel from the fuel trainis mixed with air). The housing is attached to the fire tube (5). See Figure 10 for a look inside a

    flame arrestor.

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    Figure 10-Looking Through a Flame Cell into a Firetube

    Photo owned by Profire.

    Flame Arrestor

    4. The firetube (the tube entering the application) is where the actual burner itself is housed (i .e.where the flame comes from). After being heated by the burner, the firetube provides the heat

    for the application (to learn more about specific applications, see Module 2).

    Often, another type of valve (called a modulating valve, or motor valve) helps regulate the amount of

    gas flowing through the system, and is controlled by a PF2100 BMS. When the BMS senses that theapplication has become too hot, too cold, or has a problem, it can alert the control valve and modify the

    gas flow accordingly. This is different

    than a solenoid valve (#1 in Figure 9)

    because a control valve is intended to

    gradually modify the fuel flow, rather

    than open or stop it altogether.

    Conceptually, its somewhat similar to

    using a footbrake to slow your car (i.e.

    a control valve) rather than a parking

    brake to completely stop it altogether(i.e. a solenoid valve).

    Once the fueltrain pipes the fuel

    through the flame arrestor housing

    (see Figure 10 above), the fuel train

    is ultimately piped into a burner. The

    burner is you guessed itwhere the

    fuel is burned. Above, you can see the

    fuel train meeting the mixer (which mixes primary air with the fuel itself). This fuel/air mixture is then

    piped to the burner. An airplate (shown in Figure 13 below) is a product that helps control the finalatmospheric airflow that enters the firetube before the fuel is burned, and is an important part of an

    efficient combustion system.

    Fuel trains are an integral part of combustion systems, as they prevent a constant, uncontrolled flow of

    gas from entering an application. This is why they are required in the industrycan you imagine how

    dangerous it would be to have a constant, steady stream of fuel entering into a firetube vessel?4

    With a

    fuel train, a user can effectively control how much fuel is flowing into the vessel, how much heat is

    created in the application, and even how efficient the combustion is (to a degree) . When a fuel train is

    coupled with a burner management system (like the PF2100 BMS), enhanced combustion conditions can

    be createdmaking the users process more efficient and profitable.

    Electric vs. Pneumatic

    Not all fuel trains are created equal. Fuel trains differ greatly in how they actuate, or operate, their

    components. A fuel train can either use electricity to move the valves in the fuel train, or it can use air

    4Surprisi ngly, many vessels i n the industry do not use a code-compli ant fuel trai n.

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    (e.g. instrument air or gas pressure) . If electricity is used, the fuel train is referred to as an electric fuel

    train, whereas an air-driven fuel train is called a pneumatic fuel train. The various components in the

    fuel train itself usually differ between electric and pneumatic systems. And whi le most fuel trains are

    either all-electric or all-pneumatic, some hybrids (referred to as an electric-pneumatic system) do

    exist.

    If a burner management system is to be used with the fuel train, then an electric fuel train must be used

    (or at least have some electrically controlled components). Thus, when a Profire technician installs a

    BMS, they (often) must make modif ications to the fuel train (i.e. replacing some pneumatic parts with

    electric parts) before the BMS can be effective in managing it.

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    The Role of a Burner Management System (BMS)

    In reading about the industrys processes and the equipment in it, you have probably (somewhat)

    ascertained the role of a burner management system. In case its still fuzzy, here are the basics of what a

    burner management system does:

    Monitors the burner/pilot flame of an application andensures it is li t (and thus heating the application)

    Automatically reignites the burner flame in the eventthat it has been extinguished

    Dictates to the fuel train whether to increase,decrease, or shut off fuel f low (and thus flame

    intensity) based on the temperature setpoints that are

    programmed by the user. If the application is getting

    too hot, the BMS wil l restrict fuel flow and thus cool

    the vessel to the temperature desired by the user. If

    the vessel is getting too cool, the BMS wil l increase fuel

    flow and thus heat the vessel to the temperature

    desired by the user.

    Allows a user to monitor flame status, changetemperature setpoints, and even shut-down the

    system remotely

    Without a burner management system, a worker will manually

    ignite the burner manually by using a long stick, with a burning rag at the end, and extending it near the

    burner. This is not only dangerous, but requires a worker to manually discover that the burner flame is

    extinguished, often resulting in unnecessary downtime of the application. When the burner is reignitedby a worker, it will typically run continuouslyoften needlesslyuntil the flame is again extinguished,

    and the process is repeated.

    Thus, a burner management system allows for more eff icient burner operation/re-ignition, improved

    safety, and improved compliance with regulatory bodies.

    Photo owned by Profire

    Figure 11-A Profire 2100 BMS

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    4. When the desired temperature has been exceeded, the BMS will shut off the high-fire, thusreducing the total heat to the tank (since there is less flame intensity with less fuel), and the

    process can be repeated with the low-fire and even the pilot, if necessary.

    In Figure 12, a sl ipstream system uses a flame inside a vessel to provide heat for an application. The

    flame may be used to heat a firetube for a number of reasons, such as thinning the oil so that it can flowthrough the pipes in cold conditions. The following parts are shown in the picture:

    a) A main burner provides flame within an application.b) An airplate (i.e. the circular plate to the left

    of the flame) controls the airflow entering the

    application. On new Profire airplates (see

    Figure X), the holes around the plate can

    actually be shuttered to gradually open or

    close the holes, and thus adjust the amount of

    air entering the application. This is done by

    twisting the airplate, which opens (or closes)

    the holes and changes the airflow.

    c) An igniter rod sits above the main burner (itrests within the airplate). The igniter rod senses

    flame presence and provides spark to the main

    burner. When the spark meets the gas flowing through the main burner, it combusts and

    creates a flame which is maintained by the gas flow from the fuel train.

    Figure 13-Profire Airplates

    Image owned by Profire

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    1An AC

    signal is

    created in

    the BMS

    2and the

    signal

    travels to

    the igniterrod

    2100

    BMS

    Figure 14-Flame Rectification

    Igniter Rod

    Ground(nozzle)

    3that

    signal

    creates a

    circui t with

    the flame

    4however,

    with a fla me,

    part of the

    si gnal is offset

    to round5but most of that si gnal

    is returned via the ci rcui t.The BMS detects that

    some s ignal was l ost, and

    thus detects flame

    presence

    Graphic owned by Profire

    Flame Ionization/Rectification

    As we mentioned, one of the purposes of the BMS is to simply reignite the flame if it is extinguished

    accidently. To do that, the BMS must know when flame exists in the application, and when it does not.

    So you may be wondering: how exactly does Profires system sense flame in the application and know

    when to reignite it?

    Thats where the terms flame rectificationand ionizationcome in. Although the details of this

    process require a more thorough understanding of physics and electric currents (discussed in module 2),

    a general overview is provided below:

    The PF2100 BMS interprets electrical inputs to manage the fuel train and burner of an application. To

    create an electrical input that the BMS can use, a process called flame rectification is used.

    To start the process, our PF2100 BMS wil l create an AC signal which reaches the igniter rod. If no flame

    is present, then the igniter rod wil l simply act as part of a normal circuit, and no useful feedback is given

    to the BMS (the AC signal doesnt leave the igniter rod because the air around it is an insulator). If,

    however, a flame exists, then the circuit will reach beyond the igniter rod and include the flame, which is

    electrically conductive because of ionization. Ionization is the process of becoming electrically

    conductive, and occurs naturally in flames when they burn.

    However, a flame is not perfectly conductive, and so some of the current is offsetthrough the pilot

    nozzle (i.e. the current jumps to the ground and isnt returned via the circuit). A technical person would

    say there was a direct current offset to the ground. The PF2100 BMS can sense how much offset

    current there is when a flame is present, and will reignite the burner flame if no flame exists. An

    illustration of this phenomenon is illustrated in Figure 14 below:

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    Thus, because the flame has ionized (i.e. become conductive), a circuit can be rectified through it, and

    the BMS can sense f lame presence. Flame rectification is an important technology in our products, and

    allows our burner management systems to sense flame and then manage an application with great

    sophistication. NOTE: This section is an application section. Have a corporate trainer demonstrate

    this principle with a live unit, then mark the application box in your Modules Progress in this

    manual.

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    Sensing Temperature in an Application

    The temperature of an application is an important metric in burner managementafter all, a BMS is

    supposed to know when to turn up the heat, and when to let things cool down.

    Electric vs. Pneumatic

    The means of temperature measurement depends on whether electric or pneumatic components arebeing used to measure temperature. Often, an electric device (called a thermocouple) will measure

    temperature of the application, and sends temperature readings to the BMS. The BMS then uses these

    readings to manage the fuel train and the burner(s). An older, pneumatic component (called a T-12)

    can also be used to open or close the fuel f low based on the temperature of the vessel.

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    Graphic owned by Profire

    Figure 15-An Example P&ID

    The world'slongest-producingwell was drilled in

    1861--and is stil lgoing today.

    Did youknow?

    Piping & Instrumentation Diagrams

    A lot of engineering and design time goes into each Profire product. Teams of our most innovative and

    talented employees will spend thousands of hours each year designing and improving our products.

    When these products are discussed (or designed), i llustrations are often needed to explain a design

    concept.

    Rather than each engineer devising their own way to depict products, a piping & instrumentation

    diagram, or P&ID is used. A P&ID is a universal way of drawing products, and is used to quickly

    demonstrate the parts and layout of a product. A sample P&ID is shown in Figure 15:

    At first glance, this diagram may be intimidating or confusing. However, with some knowledge of the

    symbols meanings (described in Module2), a P&ID becomes a very

    manageable and simple tool to il lustrate a systems setup. The P&ID in Figure

    15 shows the piping, valves, and arrangement needed to provide fuel to a

    combustion system.

    P&IDs are used frequently by our engineers, designers, and others who work

    closely with our products. Regardless of your role at Profire, you will find that

    a general understanding of these diagrams can serve you we llif you want to

    learn more about them, go on to Module 2.

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    Figure 16-Price of Oil/Natural Gas

    Image drawn from the US EIA

    Current Issues & Alternative Energies

    You wil l find it is helpful to know a bit about the industry trends and potential legislation, etc. so you can

    field others questions competently. To that end, a brief snapshot of some current issues in the energy

    industry is provided:

    Energy IndependenceAs mentioned earlier, the

    United States is the worlds

    largest consumer of oilbut

    it certainly isnt producing

    enough to fuel its own

    consumption (pun intended).

    In fact, it barely produces

    half of what it consumes

    and imports the rest (see

    Figure 17 below).

    The EIA estimates that the

    worlds supply of crude oil

    will be sufficient for decades

    to come. But while the use of

    oil has provided fuel to the

    world for many years, the resource is ultimately limited, helping fuel a widespread interest in finding

    alternative sources of energy, both in North America and abroad.

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    Figure 17-An Oil Well Site 1

    Image drawn from the US EIA

    Potential Legislation

    A number of legislative measures have been proposed to help combat the worldwide reliance on oil,

    one of which is the Open Source Fuel

    Standard, which is a piece of legislation

    that was introduced to congress last

    year. While unlikely to be passed soon,

    the bill represents a new focus on

    expanding the fuel capabilities of vehicles

    on the road. The bill would require that

    all vehicles be capable of driving not just

    on gasoline, but some other fuel(s) as

    well, such as methanol (which is made

    from natural gas). This legislation could

    potentially catalyze an increased use of

    natural gas, at least in the US. Since

    Profires burner management products

    can be used in producing both oil/natural

    gas, Profires sales can continue to grow

    regardless of whether the economy

    favors oil, natural gas, or bothour

    products can be used either way.

    Other potential legislation could have a significant impact on the demand for Profire systems such as

    environmental regulation imposed by an agency such as the Environmental Protection Agency (EPA).

    Environmental regulation would likely have an extraordinary impact on Profire sales, by requiring

    environmental-friendly technologies (like a BMS) to be used by oil/natural gas producers . While Profiredoesnt actively lobby for such legislation, it could have a meteoric effect on our sales.

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    Alternative Fuels

    A number of alternative energies have been proposed, specifically for vehicles. Some major alternative

    fuels are listed below:

    Alcohol fuels such as methanol or ethanol are proven to be a cheap, viable alternative togasoline, and vehicles can be easily (and cheaply) modified to use them.

    Methanol is produced from gases, and can be made from natural gas, C02 emissions, coal, andeven agricultural waste.

    Ethanol is made from crops andplants with high sugar content (e.g.

    corn). The widespread concern with

    ethanol is that its use for fuel would

    drive up food prices, since the

    ethanol used for fuel would not be

    able to be used for food.

    Biodiesel is any fuel made fromcombining an alcohol with a

    vegetable oil (e.g. soybean,

    sunflowers, corn, olive, peanut,

    palm, coconut, safflower, canola,

    sesame, cottonseed). Animal fat

    can also be used. Biodiesel emits

    less pollution than traditional

    diesel.

    Hydrogen has been used to fuelexperimental cars, and even taxis in

    London. A number of car producers

    have been developing hydrogen

    vehicles, and some (e.g. Honda) have pledged a mass-production vehicle as early as 2020.

    While other alternative fuels exist (e.g. algae, ammonia, HCNG), these represent the primary alternative

    fuels being proposed by legislators, activists, and researchers. As the price of natural gas has fallen in

    recent years (see figure 9 at left), its use (e.g. in Methanol) has become increasingly attractive to those

    considering alternative fuels. The rising price of crude oilcoupled with its eco-unfriendly emissions--

    has enhanced the resolve of those looking for an alternative fuel source.

    Figure 18-Allocation of Alternative Energy in the US

    Image drawn from the US EIA

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    Summary of Module 1

    Congratulations! Youve completed the readings for Module 1! Youre almost done, and you have

    (hopefully) learned a lot about the oil & gas industry, burner management, and Profire. This point, we

    invite you to review what youve learned, quiz yourself, and then take the Module 1 test. The test is

    administered online, and your supervisor can give you the link when you feel ready. If you read the

    material closely and took the time to understand it, the test wil l be pretty fun. Remember, you must

    pass the Module 1 test before you can advance to Module 2. If you have any further questions about

    products, refer to the Product Manual.

    Otherwise, good luck reviewing for the test, and we will see you at Module 2!

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    BibliographyEIA. (2009). Oil Producers. Retrieved from http://www.eia.gov/countries/index.cfm

    EIA. (2011). Oil Consumers. Retrieved from

    http://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=5&pid=5&aid=2

    EIA. (2011). Producing Gas Wells. Retrieved 8/24/2012, from

    http://www.eia.gov/dnav/ng/ng_prod_wells_s1_a.htm

    EIA. (2011). Total Energy. Retrieved from

    http://www.eia.gov/totalenergy/data/annual/showtext.cfm?t=ptb0502

    EPA. (2012). Oil & Gas Sector. Retrieved from

    http://www.epa.gov/sectors/sectorinfo/sectorprofiles/oilandgas.html

    Institute, A. P. (2012). The State of American Energy. Retrieved 2012, from

    http://www.api.org/newsroom/upload/soae-2012-report-layout-mechanical.pdf

    Times, N. Y. (2012). Energy Independence. Retrieved from

    http://www.nytimes.com/2012/03/23/business/energy-environment/inching-toward-energy-

    independence-in-america.html?pagewanted=all

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    2012 Profi re Energy, Inc.