Research & Development Tax Credits: More Accessible Than You Thought

Research and development tax credits provide golden, yet often overlooked, opportunities for manufacturers to recoup expenses of new product development, product changes or manufacturing process improvements. Recent changes to tax regulations and legislation have expanded these credits, making it easier for businesses to take advantage of the savings.

This week, I had the pleasure of speaking with Cedar Robinson, a corporate tax consultant with more than 18 years of specialized R&D Tax credit experience. Robinson explained that businesses do not have to be  a high-tech research type company to qualify for tax benefits. In fact, qualified research activities often include all phases of product upgrades, new product research and development,  and product & manufacturing process  upgrades  to improve quality, reliability or efficiency. Most manufacturers are continuously improving production processes and efficiency as part of everyday operations and virtually all manufacturers develop new or improved products. As a result, Robinson indicated that nearly all manufacturers are eligible for the R&D Tax credit.  [Read more...]

The Secrets to Keeping the Workplace Safe

Thanks to James Yount of Spill 911 for his contribution to the UniTherm blog. Spill 911 offers a complete line of industrial absorbents and spill response kits as well as spill containment, material handling, janitorial, stormwater control, facility protection and safety products. Our line is diverse, encompassing the top manufacturers and the highest quality products.

What are your workplace safety policies? How do you determine what those policies are? Do you understand where the common hazards are in the workplace? [Read more...]

Petroleum Industry 1901-2011: A Timeline


The history of American oil and gas industry tells a sometimes forgotten story of innovation and progress. It not only serves as a reminder of how far we’ve come in the last century but also highlights our capacity for improving energy technology for the future.

spindletop filed, oil and gas, petroleum, history, fire protection1901 North American Oil Boom
The first oil “gusher” blows in Texas at the Spindletop field, boosting annual American oil production from thousands to millions of barrels per year. Interest in oil surges, ushering in the modern age of petroleum.

1913 New Methods of Refining Oil
In Germany, chemist Freidrich Bergius introduces a process known as high-pressure hydrogenation, significantly improving gasoline output from the refining process.

1930-1940 Nylon and Polyester Invented and Commercialized
Led by research at American DuPont Chemical, chemists develop groundbreaking synthetic materials from oil-refining byproducts. Within a few years, nylon, and polyester are used to produce clothing, parachutes and a variety of industrial materials.

refinery, FCC, fluid catalytic cracking, petroleum1942 Fluid Catalytic Cracking
Exxon implements the world’s first commercial Fluid Catalytic Cracking system. FCC revolutionizes oil refining by creating a lighter, more usable product. FCC remains an important part of the oil refining business and is still used in refineries today.

1950-1970 Synthetic Oil
AMSOIL and Mobil Oil lead development of synthetic oils designed for high-performance military jets. In response to the success in military applications and a worldwide oil crisis, petrochemical companies introduce synthetic oils for automobiles in the 1970’s.

1970 Wave and Pulse Technology
US Department of Energy’s, National Energy Technology Laboratory aids in introducing seismic technology and mud pulse telemetry to the industry. Using seismic wave to locate oil and mud pulse telemetry to measure while drilling, oil companies save millions while locating and drilling for oil.

1990-2011
Fueled by the US Energy Policy Act of 1992, companies implement more efficient methods for producing and using alternative energy sources. These new energy efficiency standards lead to a surge in research and development and investments in alternative fuels and natural gas production.

 

Intumescent Coatings: The Nitty Gritty Details

If you’ve searched for any type of passive fire protection or petroleum facility fireproofing lately, you likely found a good amount of information about fire-retardant intumescent coating systems, but very few sites actually answer three common questions:

  • What are intumescent coatings and how do they work?
  • What are the benefits and drawbacks of using intumescent systems?
  • How do intumescent coatings compare to other fire protection options?

firepro, fire protection, intumescent coating, intumescent fire protection, ul1709Intumescent Coating Basics

As with any fireproof system, intumescent coatings are designed to delay the failure point of steel equipment or structures during a rapid temperature rise, or UL 1709 rated, fire. Applied as a spray coating or a molded on epoxy coating, intumescent systems chemically react and expand when exposed to a fire and to create a carbon-based layer of char.

Design installation of an intumescent coating system differs slightly based on the type of system purchased. In petroleum and petrochemical applications, most coating systems involve shipping equipment to the vendor for measurement and design purposes. Vendors create fitted, epoxy coating molds, prepare equipment surfaces and then permanently apply the systems to equipment.

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Safety Checklists for Manufacturers

safety, checklists, manufacturing safety, industrial safetyEven in the safest of facilities, failure to implement safety planning measures can lead to major injuries and in some cases, fatalities in the workplace. One of the most important planning tools is a clear safety checklist that lists the necessary conditions to ensure safety for all facility personnel.

Listing OSHA requirements and applicable safety laws that apply to your plan offers a solid starting point for creating a detailed safety checklist. Most likely, your company has already researched these requirements and taken steps to ensure compliance. Locate previous OSHA inspection reports to pinpoint any previous safety concerns.

Various industrial societies and safety research organizations offer safety knowledge and recommendations beyond minimum standard requirements. In addition to a wealth of free online information, both the American Society for Testing Materials and Underwriter’s Laboratories offer safety research, recommendations for testing safety products – think expert recommendations for building materials or fire protection products. Additionally, both organizations offer safety consultants and in depth training courses for plant managers, safety personnel or equipment operators.

When compiling a safety checklist, consider six main topics or sections to address:

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Recession and Refineries: The Environmental Impact

refinery, environmental, green, oil and gas, petroleumIn today’s tough economy many manufacturers, including refineries, search for ways to reduce overhead costs. This desire to operate facilities more efficiently has prompted petroleum refineries to increase research efforts, leading to an overall reduction in waste and more environmentally friendly policies.

Recycling Energy and Gas
Oil and gas companies have researched ways to reduce the amount of wasted energy released into the environment during processing for decades. More than ever before, petroleum refineries are investing in systems to recapture or recycle this released steam or gas.

Partnering with neighboring energy recovery experts or installing on-site systems allows facilities to recapture and reuse formerly wasted energy and gas resources. One such system, called a hot gas expander, enables refiners to recover heat energy from the fluid catalytic cracking process commonly used in gasoline manufacturing.

The environmental benefit of hot gas expander technology, according to a report by a GE Oil & Gas employee, stem from a reduction in the amount of energy and electricity required to operator machinery. This significantly lowers the carbon dioxide and nitrogen emissions of refineries that generally use large amounts of electricity.

[Read more...]

Failsafe Doesn’t Guarantee Safety

Many unfortunate disasters in the last few years have led to an increase in scrutiny of safety measures in oil, gas or petrochemical facility throughout the US and worldwide.

When discussing risk management efforts, many in the industry reference failsafe systems. While these systems can prove invaluable, they can also provide a false sense of security and allow facilities to overlook major safety concerns.

Failsafe equipment, defined by dictionary.com as “a secondary system that ensures continued operation even if the primary system fails,” may function as a backup solution, but does not necessarily ensure proper function of vital process controls during a fire. In any plant or refinery emergency, control is most important factor and often failsafe equipment lacks the technological sophistication to make critical decisions about when to initiate shutoff. Tripped prematurely, failsafe shutdowns might lead to even more unsafe conditions or costly facility issues.

Safety: Beyond Minimum Standards

With human life at stake, companies must consider safety concerns beyond the minimum requirements of OSHA, EPA or local industry standards. Failsafe equipment, which rarely includes a sufficient level of fireproofing, is often susceptible to damage and failure in the event of a high-temperature-rise fire.

[Read more...]

What’s New at UniTherm International?

2011 has been an exciting year at UniTherm International! Over the last year, we’ve taken major strides in improving our facility and R&D capabilities, strengthening marketing efforts, and broadening our representative base. We’re pleased share a sneak peak inside UniTherm HQ to show you changes we’re making to improve our products and services.

Research and Development Updates

Using state-of-the art technology and equipment, UniTherm engineers are more focused on research and development than ever before. This year we’ve rigorously tested our products’ performance which has led to the release of new and improved models of FirePro, discovered new applications for UniVest and FlexWatt and even launched a new product, SolarShell.

SolarShell is a glass-reinforced, plastic laminate that cures and hardens when exposed to UV rays. Be sure to stay tuned for future SolarShell updates, as we’ll release a series of test videos for this multipurpose product later this summer. [Read more...]

NASA’s Contributions to Fire Protection

The completion of NASA’s final space shuttle mission last month left some Americans feeling mixed emotions. For those of us in the petroleum or fire protection industry, the impact of the space program reachers much further than our nostalgic memories of shuttle launches.

Armed with some of the nation’s top scientists, engineers and researchers, NASA possessed capabilities to complete highly detailed material science experiments to aid in shuttle design. This invaluable knowledge revolutionized industrial fire protection worldwide.

NASA’s Glenn Research Center, which is still in operation today, often worked in unison with college and university scientists to test and analyze the effects of high temperature fires. Between 1995 and 2003, NASA partnered with universities to complete intensive flame spread research. The findings influenced recent standards and recommendations for building and construction materials published by the American Society for Testing Materials®, Underwriter’s Laboratories® and the National Fire Protection Association®.

Throughout the era of the shuttle program, NASA designed, engineered and tested several variations of their Thermal Protection System, which protected shuttles from severe temperatures during reentry to earth. A key component in the construction of these fire resistant systems, the shuttle tiles, have represented leading fire resistant technology for decades.

These “tile[s] performed wonderfully,” said former NASA shuttle program manager Ron Dittemore in a discussion about shuttle fire resistance. Over their many years of use, shuttle tiles evolved from low-temperature ceramic based tiles to high-temperature insulation tiles made from a fibrous, silica material.

[Read more...]

UL1709 Standards in Refineries and Chemical Plants

When planning updates for gas refineries, chemical plants or any other facility with hazardous materials, engineers often require that equipment meet specific fire codes and standards. In today’s post we’ll discuss the most common standard for equipment fire protection, UL1709.

About the UL 1709 Standard

The most common fire standard for equipment fire protection in the oil, gas and petrochemical industry is UL 1709. This Underwriter’s Laboratories® standard applies to the “Rapid Rise Fire Tests of Protection Materials for Structural Steel.” In layman’s terms, UL 1709 is a high temperature fire test to prove that fire protection materials can withstand exposure to high rise temperature fires.

A UL1709 test evaluates the performance of protective material through a test in a furnace capable of reaching 2,000°F (1103°C) within 5 minutes of operation. The materials must provide sufficient fire protection so that equipment maintains structural integrity for 30 minutes in a 2,000°F fire.

Sample test results from a UL1709 test of fire protection equipment.

[Read more...]