STWA's Oil Pipeline Efficiency Technology Could Materially Impact Transportation of Oil in the United States
SANTA BARBARA, CA--(Marketwire -04/05/12)- STWA, Inc. (OTC.BB: ZERO.OB - News) ("STWA" or the "Company"), a developer of energy efficiency technologies in the multi-billion dollar oil pipeline and diesel engine markets, provided further guidance on how its Applied Oil Technology™ (AOT™) oil pipeline efficiency technology can deliver economic and environmental benefits in the U.S. energy markets.
According to the Association of Oil Pipelines (AOPL), pipelines accounted for 71% of all petroleum transportation in the U.S. in 2008; this is up 66% from 2007 and 54% from 1990. The AOPL provides further data on the superior cost efficiency and safety of pipelines, as compared to alternative forms of transporting oil.
The Company issued a report from the United States Department of Energy earlier today that showed their AOT™ achieved a 40% Pressure Drop Reduction in recent tests done at the Department of Energy's Rocky Mountain Oilfield Testing Center in Casper Wyoming. Last October, the U.S. Department of Energy published tests showing that STWA's AOT could potentially reduce the amount of energy used in transporting oil per mile by as much as 13%.
The U.S. consumes an estimated 19 million barrels of oil per day, with 71%, or 13.5 million barrels flowing through pipelines. At $100 per barrel, this translates into $1.35 billion worth of oil flowing through U.S. pipelines each day.
STWA Chairman and CEO Mr. Cecil Bond Kyte stated, "The test results released today showed that our technology could deliver a 40% pressure drop reduction in oil pipelines. This pressure drop reduction could result in more oil flowing through pipelines. This alone could dramatically impact the industry. The Company has not yet translated the financial impact of how this 40% reduction could impact the industry. Up to this point we have only calculated the financial impact of the 13% energy reduction from results last October." He added, "The cost of transporting $1.35 billion worth of oil per day is significant. AOT™ has been proven to reduce the amount of energy required to move oil by as much as 13%. This potentially means 13% lower oil transportation costs and a corresponding decrease of 13% less greenhouse gas emissions every day in the U.S. We are now in the process of moving towards commercializing of AOT™. Our goal is to advance AOT™ for deployment in the United States and impact up to 71% of the oil that flows through this country."
The Company recently announced agreements towards international commercialization of their technology. In December of 2011, they executed a Letter of Intent to Commercialize AOT™ in China, followed by a Collaboration Framework Agreement with its Chinese commercialization partner in March of 2012. Additionally, in March of 2012, the Company signed Letter of Intent with LG Partners to deploy AOT™ in a multi-national, $2.5 billion, 900-mile oil pipeline.
STWA's Applied Oil Technology™ (AOT™) is designed to allow pipeline operators to temporarily reduce the viscosity of the crude oil within their pipeline(s) to reduce the fluid-drag (also known as friction-loss) between the fluid and the pipeline. By reducing the friction loss, pipeline operators' pump systems require less energy to maintain a constant flow rate, thereby directly reducing daily operation costs.
About STWA, Inc.
STWA, Inc. (OTC.BB: ZERO.OB - News) develops and commercializes energy efficiency technologies that assist in meeting increasing global energy demands, improving the economics of oil extraction and transport, and reducing greenhouse gas emissions. The Company's intellectual property portfolio includes 24 domestic and international patents and patents pending, which have been developed in conjunction with and exclusively licensed from Temple University. STWA's technologies include Applied Oil Technology (AOT™) which improves oil flow through pipelines. AOT™ has been proven in U.S. Department of Energy tests to increase the energy efficiency of oil pipeline pump stations by over 13%. ELEKTRA™ improves diesel engine efficiency for industrial diesel engines, as well as diesel-powered trucks, trains, marine vessels, military fleets and jet turbines. More information including a company Fact Sheet, logos and media articles are available at: http://www.stwa.com.
Safe Harbor Statement
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.