On Friday, STWA announced that the company's new oil efficiency system, called Applied Oil Technology (AOT), is readying for Phase II trials of a three-phase process. The process, taking place in China, is required by the China Petroleum Pipeline Administration (NYSE:CPP).
STWA is focused on developing and monetizing technology that improves the energy efficiency of oil extraction and transport, while reducing greenhouse gas emissions. STWA's portfolio includes 24 patents and patents pending, which range from the aforementioned Applied Oil Technology to its ELEKTRA system, designed to improve the efficiency of diesel-powered engines and machinery.
The AOT system, after having arrived in Tianjin, China, will be tested to determine its value to the Chinese domestic energy production and transport markets. The unit was previously tested successfully with the U.S. Department of Energy at the Rocky Mountain Oilfield Testing Center, located on the U.S. Naval Petroleum Reserve #3 near Casper, Wyoming. The new tech is of interest to China for its ability to improve the maximum flow rates in the existing 13,000 miles of pipeline that currently network through the country.
Cecil Bond Kyte, STWA CEO, said, "China needs flow improvement technology such as AOT now more than ever. The nation's oil and energy needs are growing at over a million barrels per day, per year, according to U.S. government figures. By installing AOT systems into their existing networks of pipelines, in addition to the new lines that are being built over the next two decades, they could save billions of kilowatt-hours of electricity, while increasing the transport rates of their pipeline networks to alleviate bottleneck concerns. We together feel that on-demand viscosity reduction will be a must-have for every pipeline throughout the country, and this testing is to support those efforts."
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