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The API Monogram Program

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API Monogram Program. Currently covers over 50 API Exploration & Production standards ... Oil companies order API-Monogrammed equipment ... – PowerPoint PPT presentation

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Title: The API Monogram Program


1
The APIMonogram Program
2
API Monogram Program
- Beginning
  • Established by APIs Board of Directors on
    October 24, 1924
  • Originally created to facilitate the availability
    of safe, interchangeable, off-the-shelf equipment
    for use in the petroleum industry
  • Identifies companies capable of manufacturing
    petroleum equipment, materials and services in
    accordance with API quality and product standards

3
API Monogram Program
- Beginning
- Scope
  • Currently covers over 50 API Exploration
    Production standards
  • Designed to address business need of equipment
    interchangeability, reliability and increased
    quality
  • As needs have changed, program has changed
  • From self-certification to on-site
    verification
  • Establishes a warranty between the equipment
    manufacturer, the equipment purchaser and API

4
API Monogram Program
- Beginning
- Scope
  • API product standards describe the equipment
    manufacturing requirements
  • API Spec Q1 describes the quality system
    requirements
  • License Agreement defines the relationship and
    responsibilities between API and the manufacturer
  • Oil companies order API-Monogrammed equipment
  • Oil companies report product non-conformances to
    API

5
API Monogram Program
- Beginning
- Scope
- Audits
  • Quality system is audited
  • must meet API Spec Q1
  • Manufacturing capability is audited
  • must meet API product standards
  • License has 3-year term with interim audits
  • Initial Audit
  • Unscheduled Periodic Audit
  • Renewal Audit
  • Licensees signify quality and conforming products
    with the API Monogram

6
The Licensing Process
- Beginning
- Scope
- Audits
- Process
Oil Company Purchases API-Monogrammed Equipment
License Issued
7
API Monogram Program
- Beginning
- Scope
- Audits
  • Directory of approved companies distributed every
    quarter
  • Sent to over 2000 purchasers
  • worldwide distribution
  • list available on the Web at www.api.org
  • Current program has
  • 1300 Licensees, 2000 Licenses
  • over 60 Countries, with over 65 international

- Process
8
Benefits
- Beginning
- Scope
- Audits
  • Helps users readily identify suppliers capable of
    producing API products and committed to quality
  • Reduces/eliminates the users on-site supplier
    audit burden
  • Provides third-party objective review and
    monitoring system
  • International scope allows for broad purchasing
    options

- Process
- Benefits
9
Benefits
- Beginning
- Scope
  • Addresses free-rider issue and defrays costs of
    standard development and maintenance
  • Increased revenue stream from standard sales
    results in increased research funding
  • Petroleum industry-directed and regulated
  • Is self-supporting and generates additional
    revenue to reduce API membership dues burden

- Audits
- Process
- Benefits
10
Program Expansion
- Beginning
- Scope
- Audits
- Process
  • Working with API Aviation Committee to offer
    licensing for API 1581 - aviation fuel filters
  • Plans to include aviation fuel hoses, monitors
    and related products
  • Downstream standards licensing demand is building

- Benefits
- Downstream
11
Program Expansion
- Beginning
- Scope
  • Over the last 18 months
  • 33 requests from 12 different countries for
    downstream licenses
  • Demand estimated by local product experts

- Audits
- Process
- Benefits
- Downstream
12
Program Expansion
- Beginning
- Scope
- Audits
- Process
  • Proposal Extend licensing to API 610 centrifugal
    pump manufactures
  • Action Item Implement pilot program for API 610
    licensing and report on the results next Fall
    Meeting

- Benefits
- Downstream
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