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The case for smarter CUI inspections in the energy sector

Guest Column

A new generation of technology is making it faster, safer, and more cost-effective to identify CUI. Courtesy photo

Corrosion under insulation (CUI) accounts for roughly 60% of pipeline leaks in the U.S. oil and gas sector. Yet many operators still rely on outdated inspection methods that are slow, risky, and economically unsustainable.

This year, widespread budget cuts and layoffs across the sector are forcing refineries to do more with less. Efficiency is no longer a goal; it’s a mandate. The challenge: how to maintain safety and reliability without overextending resources?

Fortunately, a new generation of technologies is gaining traction in the oil and gas industry, offering operators faster, safer, and more cost-effective ways to identify and mitigate CUI.

Hidden cost of corrosion

Corrosion is a pervasive threat, with CUI posing the greatest risk to refinery operations. Insulation conceals damage until it becomes severe, making detection difficult and ultimately leading to failure. NACE International estimates the annual cost of corrosion in the U.S. at $276 billion.

Compounding the issue is aging infrastructure: roughly half of the nation’s 2.6 million miles of pipeline are over 50 years old. Aging infrastructure increases the urgency and the cost of inspections.

So, the question is: Are we at a breaking point or an inflection point? The answer depends largely on how quickly the industry can move beyond inspection methods that no longer match today's operational or economic realities.

Legacy methods such as insulation stripping, scaffolding, and manual NDT are slow, hazardous, and offer incomplete coverage. With maintenance budgets tightening, these methods are no longer viable.

Why traditional inspection falls short

Without question, what worked 50 years ago no longer works today. Traditional inspection methods are slow, siloed, and dangerously incomplete.

Insulation removal:

  • Disruptive and expensive.
  • Labor-intensive and time-consuming, with a high risk of process upsets and insulation damage.
  • Limited coverage. Often targets a small percentage of piping, leaving large areas unchecked.
  • Health risks: Exposes workers to hazardous materials such as asbestos or fiberglass.

Rope access and scaffolding:

  • Safety hazards. Falls from height remain a leading cause of injury.
  • Restricted time and access. Weather, fatigue, and complex layouts limit coverage and effectiveness.
  • High coordination costs. Multiple contractors, complex scheduling, and oversight, which require continuous monitoring, documentation, and compliance assurance across vendors and protocols drive up costs.

Spot checks:

  • Low detection probability. Random sampling often fails to detect localized corrosion.
  • Data gaps. Paper records and inconsistent methods hinder lifecycle asset planning.
  • Reactive, not proactive: Problems are often discovered late after damage has already occurred.

A smarter way forward

While traditional NDT methods for CUI like Pulsed Eddy Current (PEC) and Real-Time Radiography (RTR) remain valuable, the addition of robotic systems, sensors, and AI are transforming CUI inspection.

Robotic systems, sensors, and AI are reshaping how CUI inspections are conducted, reducing reliance on manual labor and enabling broader, data-rich asset visibility for better planning and decision-making.

ARIX Technologies, for example, introduced pipe-climbing robotic systems capable of full-coverage inspections of insulated pipes without the need for insulation removal. Venus, ARIX’s pipe-climbing robot, delivers full 360° CUI data across both vertical and horizontal pipe circuits — without magnets, scaffolding, or insulation removal. It captures high-resolution visuals and Pulsed Eddy Current (PEC) data simultaneously, allowing operators to review inspection video and analyze corrosion insights in one integrated workflow. This streamlines data collection, speeds up analysis, and keeps personnel out of hazardous zones — making inspections faster, safer, and far more actionable.

These integrated technology platforms are driving measurable gains:

  • Autonomous grid scanning: Delivers structured, repeatable coverage across pipe surfaces for greater inspection consistency.
  • Integrated inspection portal: Combines PEC, RTR, and video into a unified 3D visualization, streamlining analysis across inspection teams.
  • Actionable insights: Enables more confident planning and risk forecasting through digital, shareable data—not siloed or static.

Real-world results

Petromax Refining adopted ARIX’s robotic inspection systems to modernize its CUI inspections, and its results were substantial and measurable:

  • Inspection time dropped from nine months to 39 days.
  • Costs were cut by 63% compared to traditional methods.
  • Scaffolding was minimized 99%, reducing hazardous risks and labor demands.
  • Data accuracy improved, supporting more innovative maintenance planning.

Why the time is now

Energy operators face mounting pressure from all sides: aging infrastructure, constrained budgets, rising safety risks, and growing ESG expectations.

In the U.S., downstream operators are increasingly piloting drone and crawler solutions to automate inspection rounds in refineries, tank farms, and pipelines. Over 92% of oil and gas companies report that they are investing in AI or robotic technologies or have plans to invest soon to modernize operations.

The tools are here. The data is here. Smarter inspection is no longer aspirational — it’s operational. The case has been made. Petromax and others are showing what’s possible. Smarter inspection is no longer a leap but a step forward.

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Tyler Flanagan is director of service & operations at Houston-based ARIX Technologies.


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Under its deal with Occidental, pipeline company Enterprise Products Partners will create a carbon dioxide pipeline system for 1PointFive’s Bluebonnet Sequestration Hub. Photo via 1pointfive.com

Oxy, Enterprise Products Partners to collaborate on carbon dioxide pipeline system for Texas project

coming soon

Occidental Petroleum’s carbon capture, utilization, and sequestration (CCUS) subsidiary has tapped another Houston-based company to develop a carbon dioxide pipeline and transportation network for one of its CCUS hubs.

Under its deal with Occidental, pipeline company Enterprise Products Partners will create a carbon dioxide pipeline system for 1PointFive’s Bluebonnet Sequestration Hub, which will span more than 55,000 acres in Chambers, Liberty, and Jefferson counties. The hub will be able to hold about 1.2 billion metric tons of carbon dioxide. The new pipeline network will be co-located with existing pipelines.

Enterprise Products Partners also will supply fee-based services for transporting CO2 emissions from industrial facilities near the Houston Ship Channel to the Bluebonnet hub.

“This agreement pairs our expertise managing large volumes of CO2 with Enterprise’s decades of midstream experience to bring confidence to industrial customers seeking a decarbonization solution,” Jeff Alvarez, president of 1PointFive’s sequestration business, says in a news release.

The Bluebonnet Sequestration Hub recently received funding from the U.S. Department of Energy (DOE) to help cover development costs.

“This hub is located between two of the largest industrial corridors in Texas so captured CO2 can be efficiently transported and safely sequestered,” Alvarez said in 2023. “Rather than starting from scratch with individual capture and sequestration projects, companies can plug into this hub for access to shared carbon infrastructure.”

Here are some things to know about the situation with the pipeline fire burning just outside of Houston. Photo via Getty Images

What to know about the Houston pipeline fire — how it started, pollution impact, and more

latest update

A pipeline fire that forced hundreds of people to flee their homes in the Houston suburbs burned for a third day Wednesday, with officials saying they don't expect it to be extinguished until sometime Thursday evening.

Officials said residents who had to evacuate would be allowed to return to their homes starting Wednesday evening.

Authorities have offered few details about what prompted the driver of an SUV to hit an aboveground valve on the pipeline on Monday, sparking the blaze.

Here are some things to know about the situation with the pipeline fire:

What caused the fire?

Officials say the underground pipeline, which runs under high-voltage power lines in a grassy corridor between a Walmart and a residential neighborhood in Deer Park, was damaged when the SUV driver left the store's parking lot, entered the wide grassy area and went through a fence surrounding the valve equipment.

Authorities have offered few details on what caused the vehicle to hit the pipeline valve, the identity of the driver or what happened to them. The pipeline company on Wednesday called it an accident. Deer Park officials said preliminary investigations by police and FBI agents found no evidence of a terrorist attack.

Deer Park police won't be able to reach the burned-out vehicle until the flame has been extinguished. Once the area is safe, the department will be able to continue its investigation and confirm specifics, city spokesperson Kaitlyn Bluejacket said in an email Wednesday.

The valve equipment appears to have been protected by a chain-link fence topped with barbed wire. The pipeline's operator has not responded to questions about any other safety protections that were in place.

Who is responsible for the pipeline?

Energy Transfer is the Dallas-based owner of the pipeline, a 20-inch-wide (50-centemeter-wide) conduit that runs for miles through the Houston area.

It carries natural gas liquids through the suburbs of Deer Park and La Porte, both of which are southeast of Houston. Energy Transfer said the fire had diminished overnight and was continuing to “safely burn itself out” on Wednesday.

Energy Transfer also built the Dakota Access Pipeline, which has been at the center of protests and legal battles. The company’s executive chairman, Kelcy Warren, has given millions of dollars in campaign contributions to Republican Texas Gov. Greg Abbott.

What's being done to extinguish the fire?

Energy Transfer said its crews were working Wednesday to install specialized isolation equipment on both sides of the damaged section that will help extinguish the fire.

Once the equipment is installed, which could take several hours of welding, the isolated section of the pipeline will be purged with nitrogen, which will extinguish the fire, company and local officials said. After that, damaged components can be repaired.

“The safest way to manage this process is to let the products burn off,” Energy Transfer said.

Late Wednesday afternoon, Deer Park officials said repair work on the pipeline to help speed up the process to put out the fire wasn't expected to be completed until 6 p.m. on Thursday. Once finished, the fire was anticipated to be extinguished within two to three hours.

How have residents been impacted?

Authorities evacuated nearly 1,000 homes at one point and ordered people in nearby schools to shelter in place. Officials said that starting at 6 p.m. on Wednesday, residents in Deer Park and La Porte who had to evacuate would be allowed to return to their homes. A portion of a highway near the pipeline would remain closed, officials said.

Hundreds of customers lost power. Officials said Wednesday afternoon that only two customers remained without electricity in the Deer Park and La Porte area. Repairs to all of the power distribution lines affected by the fire had been completed.

Deer Park's statement said Energy Transfer was “prioritizing the safety of the community and environment as it implements its emergency response plan.”

“We appreciate the patience and understanding of all residents during this ongoing situation,” Deer Park officials said.

By late Tuesday, about 400 evacuees remained, and some expressed frustration over being forced to quickly flee and not being given any timeline for when they will be able to return.

“We literally walked out with the clothes on our backs, the pets, and just left the neighborhood with no idea where we were going,” said Kristina Reff, who lives near the fire. “That was frustrating.”

What about pollution from the fire?

Energy Transfer and Harris County officials have said that air quality monitoring shows no immediate risk to individuals, despite the huge tower of billowing flame that shot hundreds of feet into the air, creating thick black smoke that hovered over the area.

Houston is the nation’s petrochemical heartland and is home to a cluster of refineries and plants and thousands of miles of pipelines. Explosions and fires are a familiar sight, and some have been deadly, raising recurring questions about industry efforts to protect the public and the environment.

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ERCOT steps up grid innovation efforts to support growing power demand

grid boost

As AI data centers gobble up more electricity, the Electric Reliability Council of Texas (ERCOT) — whose grid supplies power to 90 percent of Texas — has launched an initiative to help meet challenges presented by an increasingly strained power grid.

ERCOT, based in the Austin suburb of Taylor, said its new Grid Research, Innovation, and Transformation (GRIT) initiative will tackle research and prototyping of emerging technology and concepts to “deeply understand the implications of rapid grid and technology evolution, positioning ERCOT to lead in the future energy landscape.”

“As the ERCOT grid continues to rapidly evolve, we are seeing greater interest from industry and academia to collaborate on new tools and innovative technologies to advance the reliability needs of tomorrow’s energy systems,” ERCOT President and CEO Pablo Vegas said in a news release. “These efforts will provide an opportunity to share ideas and bring new innovations forward, as we work together to lead the evolution and expansion of the electric power grid.”

In conjunction with the GRIT initiative, ERCOT launched the Research and Innovation Partnership Engagement (RIPE) program. The program enables partners to work with ERCOT on developing technology aimed at resolving grid challenges.

To capitalize on ideas for grid improvements, the organization will host its third annual ERCOT Innovation Summit on March 31 in Round Rock. The summit “brings together thought leaders across the energy research and innovation ecosystem to explore solutions that use innovation to impact grid transformation,” ERCOT said.

“As the depth of information and industry collaboration evolves, we will continue to enhance the GRIT webpages to create a dynamic and valuable resource for the broader industry to continue fostering strong collaboration and innovation with our stakeholders,” said Venkat Tirupati, ERCOT’s vice president of DevOps and grid transformation.

ERCOT’s GRIT initiative comes at a time when the U.S. is girding for heightened demand for power, due in large part to the rise of data centers catering to the AI boom.

A study released in 2024 by the Electric Power Research Institute (EPRI) predicted electricity for data centers could represent as much as 9.1 percent of total power usage in the U.S. by 2030. According to EPRI, the share of Texas electricity consumed by data centers could climb from 4.6 percent in 2023 to almost 11 percent by 2030.

A report issued in 2024 by the federal government’s Lawrence Berkeley National Laboratory envisions an even faster increase in data-center power usage. The report projected data centers will consume as much as 12 percent of U.S. electricity by 2028, up from 4.4 percent in 2023.

In 2023, the EPRI study estimated, 80 percent of the U.S. electrical load for data centers was concentrated in two states, led by Virginia and Texas. The University of Texas at Austin’s Center for Media Engagement reported in July that Texas is home to 350 data centers, second only to Virginia.

“The U.S. electricity sector is working hard to meet the growing demands of data centers, transportation electrification, crypto-mining, and industrial onshoring, while balancing decarbonization efforts,” David Porter, EPRI’s vice president of electrification and sustainable energy strategy, said. “The data center boom requires closer collaboration between large data center owners and developers, utilities, government, and other stakeholders to ensure that we can power the needs of AI while maintaining reliable, affordable power to all customers.”

Policy adviser tapped to lead ‘nuclear renaissance’ in Texas

going nuclear

As Texas places a $350 million bet on nuclear energy, a budget and policy adviser for Gov. Greg Abbott has been tapped to head the newly created Texas Advanced Nuclear Energy Office.

Jarred Shaffer is now director of the nuclear energy office, which administers the $350 million Texas Advanced Nuclear Development Fund. The fund will distribute grants earmarked for the development of more nuclear reactors in Texas.

Abbott said Shaffer’s expertise in energy will help Texas streamline nuclear regulations and guide “direct investments to spur a flourishing and competitive nuclear power industry in the Lone Star State. Texas will lead the nuclear renaissance.”

The Texas Nuclear Alliance says growth of nuclear power in the U.S. has stalled while China and Russia have made significant gains in the nuclear sector.

“As Texas considers its energy future, the time has come to invest in nuclear power — an energy source capable of ensuring grid reliability, economic opportunity, and energy and national security,” Reed Clay, president of the alliance, said.

“Texas is entering a pivotal moment and has a unique opportunity to lead. The rise of artificial intelligence and a rebounding manufacturing base will place unprecedented demands on our electricity infrastructure,” Clay added. “Meeting this moment will require consistent, dependable power, and with our business-friendly climate, streamlined regulatory processes, and energy-savvy workforce, we are well-positioned to become the hub for next-generation nuclear development.”

Abbott’s push for increased reliance on nuclear power in Texas comes as public support for the energy source grows. A 2024 survey commissioned by the Texas Public Policy Institute found 55 percent of Texans support nuclear energy. Nationwide support for nuclear power is even higher. A 2024 survey conducted by Bisconti Research showed a record-high 77 percent of Americans support nuclear energy.

Nuclear power accounted for 7.5 percent of Texas’ electricity as of 2024, according to the Nuclear Energy Institute, but made up a little over 20 percent of the state’s clean energy. Currently, four traditional reactors produce nuclear power at two plants in Texas. The total capacity of the four nuclear reactors is nearly 5,000 megawatts.

Because large nuclear plants take years to license and build, small factory-made modular reactors will meet much of the shorter-term demand for nuclear energy. A small modular reactor has a power capacity of up to 300 megawatts. That’s about one-third of the generating power of a traditional nuclear reactor, according to the International Atomic Energy Agency.

A report from BofA Global Research predicts the global market for small nuclear reactors could reach $1 trillion by 2050. These reactors are cheaper and safer than their larger counterparts, and take less time to build and produce fewer CO2 emissions, according to the report. Another report, this one from research company Bloomberg Intelligence, says soaring demand for electricity — driven mostly by AI data centers — will fuel a $350 billion boom in nuclear spending in the U.S., boosting output from reactors by 63 percent by 2050.

Global nuclear capacity must triple in size by 2050 to keep up with energy demand tied to the rise of power-gobbling AI data centers, and to accomplish decarbonization and energy security goals, the BofA report says. Data centers could account for nine percent of U.S. electricity demand by 2035, up from about four percent today, according to BloombergNEF.

As the Energy Capital of the World, Houston stands to play a pivotal role in the evolution of small and large nuclear reactors in Texas and around the world. Here are just three of the nuclear power advancements that are happening in and around Houston:

Houston is poised to grab a big chunk of the more than 100,000 jobs and more than $50 billion in economic benefits that Jimmy Glotfelty, a former member of the Texas Public Utility Commission, predicts Texas will gain from the state’s nuclear boom. He said nuclear energy legislation signed into law this year by Abbott will provide “a leg up on every other state” in the race to capitalize on the burgeoning nuclear economy.

“Everybody in the nuclear space would like to build plants here in Texas,” Inside Climate News quoted Glotfelty as saying. “We are the low-regulatory, low-cost state. We have the supply chain. We have the labor.”

6 must-attend Houston energy transition events in October 2025

Must-Attend Meetings

Editor's note: October is here, and there are many energy events to plug into in Houston this month. From summits and forums to global conferences, there are the energy events to put on your calendar. Learn more below, and register now.

Oct. 7-8: Annual Energy Summit — Resilience in Energy Supply Chains

The ninth annual energy summit is co-hosted by Baker Botts and the Center for Energy Studies at Rice University's Baker Institute. This year's theme, “Resilience in Energy Supply Chains,” will focus on what is shaping the future of energy, and how markets, innovation, and economic growth will define the evolution of global energy supply chains.

This two-day event begins Oct. 7 at Rice University's Baker Institute for Public Policy. The event will also be livestreamed. Get tickets here.

Oct. 14: Current Trends in the Energy Industry

Join SABA and Vinson & Elkins LLP for an evening filled with insightful discussions and networking opportunities for seasoned professionals and those new to the energy industry. Learn from experts about the latest developments in the energy industry, sustainability efforts, and new policies shaping the future.

This event takes place at 6 pm at Vinson & Elkins LLP headquarters. Get tickets here.

Oct. 14-16: SAF North America

The leading event for the sustainable aviation fuel ecosystem is taking place in Houston, America’s fuel and energy hub. SAF North America brings together the SAF value chain under one roof for three days of high-level discussion. Attendees of the conference will hear from leading experts, who will provide insights on the aviation industry and discuss SAF scale-up, energy security, and pathways to decarbonize aviation in North America. There will also be dynamic exhibitions and networking opportunities.

This event begins Oct. 14 at the Marriott Marquis. Register here.

Oct. 16: Future of Global Energy Conference

The Future of Global Energy Conference, presented by Shell USA, Inc., brings together leaders from across industry, academia, and government to explore the forces shaping the future of energy. Houston is leading the way in the energy sector, leveraging its deep industry expertise, unmatched energy ecosystem, and spirit of innovation. The 2025 conference will spotlight Houston’s ongoing leadership in policy, technology development, and project execution that position the region for long-term success.

This event begins at 8:30 am at Hilton Americas. Register here.

Oct. 21-23: Energy Independence Summit

At Infocast’s inaugural Energy Independence Summit, top leaders across energy, finance, and policy will convene to evaluate where the energy market is headed next. Attendees will gain critical insights into how capital is being deployed, which technologies are emerging as the most viable under OBBBA, how domestic supply chains are affecting costs and timelines, and what regulatory levers may help stabilize the sector. The summit will feature 100 speakers, 24 sessions, networking opportunities, and more.

This event takes place Oct. 21 at the C. Baldwin, Curio Collection by Hilton. Register here.

Oct. 29: 2025 Global Energy Summit

Hosted by the World Affairs Council of Greater Houston, the Global Energy Summit examines the dynamic forces shaping today’s energy landscape. Attendees will engage with a diverse set of industry experts and global thought leaders on the future of energy security, access, and technological advancement. Opening remarks will be made by Cristina Saenz de Santa Maria, COO Maritime of DNV, followed by panel discussions featuring speakers from DNV, Accenture, Amazon Web Services, Center for Houston’s Future, Siemens, SLB, and NRG.

This event begins at 5 pm on Oct. 29 at the Omni Houston. Get tickets here.

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