Early Failure Detection is Transforming Asset Integrity Economics

This use case centers on the midstream oil and gas sectors. However, the economics are valid for downstream sectors, water and rail operators too.   

Everyone knows that Failures are expensive and unacceptable. Failures result in critical and ongoing repairs, with lost production, regulatory exposure, and reputational damage. This is where KartaSoft risk intelligence supports better outcomes.  

To put this in context, some of the largest companies in the world have discovered that IoT, SCADA and/or traditional survey inspections will raise an alarm as to what might happen, but by then the cost curve is already steep and the impact potentially catastrophic. 

The Cost of Waiting Too Long 

A single unplanned pipeline rupture or compressor failure can easily run into $10M–$50M+. These costs come from: 

• Emergency mobilization of crews and equipment. 

• Days of lost throughput worth $0.5M–$2M per day. 

• Environmental cleanup and regulatory fines in the millions. 

• Insurance premiums increase and the cost of reputational damage. 

The Value of Insights Six Months Ahead 

KartaSoft customers benefit from the ability to understand what will fail six months ahead of today’s IoT and SCADA alerts.  

By reducing the number of leaks with several times LESS capital expenditure, we provide a lead time that unlocks enormous value. Independent studies show that catching the same defects and rectifying them within BaU can return an estimated 80–90% back to the budget. IoT did promise similar outcomes; however, in practice, at best, organisations have a better rear-view mirror of what has happened.  

A word of warning, companies that are looking towards a risk intelligence tool should demand that the provider can validate their claims under an unbiased and blind data testing regime. Our approach provides a level of confidence that enables workflows to capitalize on: 

• Budget control: Maintenance shifts from reactive firefighting to predictable planning. 

• Zero unplanned downtime: Repairs align with scheduled outages, avoiding lost throughput. 

• CapEx deferral: Early treatment and preventative solutions can slow degradation and extend asset life by 5–10 years. 

• Risk reduction: our primary focus is de-risking networks. Everything follows from this. Spills or environmental incidents equate to tens of millions of dollars in lost product, material waste and fines. 

• Insurance and financing advantage: A lower risk profile translates directly into reduced premiums and stronger investor confidence. 

Within large sector operators, these impacts are even more stark and are estimated at: 

• $50M–$150M in direct annual savings. 

• $200M–$500M in deferred capital expenditure. 

• Tens of millions in insurance and operational efficiency gains. 

• Protection from $100M+ catastrophic events that never hit the balance sheet. 

Risk Intelligence is about Prescriptive Maintenance and the Enterprise Value Chain  

Beyond the monetary returns, there are also positive impacts, such as decarbonization objectives, which are achieved by default. This, in turn, impacts stakeholder trust and unlocks long-term enterprise value. 

Every dollar spent on early detection and proactive integrity management returns multiple dollars in avoided costs. This is why strategic thinking asset managers are now moving beyond the numbers, addressing failures earlier with flow-through savings.  

Get the basics right, and the value chain will follow.