How LACT Skids Work in Oil Production

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Have you been asking questions like “What does LACT stand for in the oil field?” Need high-quality equipment to transport crude oil from your production sites to storage facilities, pipelines, or other operational destinations? Not sure what exactly a crude oil LACT unit is or what benefits it provides?

This guide to LACT oil skids will clear up any uncertainty and break down everything you need to know about these sophisticated pieces of oil production equipment.

LACT Meaning in Crude Oil — What Are LACT Skids?

The acronym “LACT” stands for “lease automatic custody transfer.” Each word that makes up the acronym describes a facet of the relationship between the two parties or a part of the process. But what is a LACT unit, and how does it work?

lact skid

The entity pumping the oil has a lease with the entity receiving the oil. The phrase “automatic” explains that the process of transferring the oil occurs without any manual intervention. The term “custody transfer” simply demonstrates that the recipient takes custody of the oil via a certified measurement and transfer process.

Once installed, a crude oil LACT unit will not only transport the oil but also measure the volume. LACT units will document precisely how much crude oil is being transferred to the recipient. This documentation process verifies how much crude oil the recipient is taking custody of so they can be billed appropriately.

The automatic transfer capabilities of LACT units significantly improve harvesting efficiency in crude oil operations.

Factors Affecting Crude Oil Operations

Without LACT units, measuring the quality and volume of oil delivered to recipients can be incredibly difficult. Several different factors can impact crude oil quality and volume. A few of these factors include:

  • API gravity
  • Temperature
  • BS&W

Basic sediment and water (BS&W) refers to the amount of other substances in the stream of crude oil.. Top-end LACT units can effectively measure these substances and correct calculations to accurately reflect the amount of oil transported in a given period.

Benefits of LACT Units

LACT skids offer many benefits compared to antiquated transportation methods. The most notable of these benefits include the following:

  • Dramatically improving accountability and transaction accuracy
  • Accounting for BS&W, temperature changes, and other variables
  • Ensuring total compliance with relevant governing entities
  • Decreasing the risk of production delays or transportation disruptions
  • Reducing the cost of transporting oil to recipients

To experience the above benefits, organizations must partner with reputable LACT skid fabricators. The best manufacturers not only produce world-class LACT units but also make them available via straightforward leasing and purchasing programs.

LACT Skid Industry Standards

When searching for LACT skids, prospective purchasers should ensure that the machinery is constructed following the latest industry standards. A few things to look for include:

LACT skids produced following these standards will not only perform more reliably but will also facilitate fair and accurate accounting of all oil or gas transportation. In addition, this setup ensures that landowners are paid appropriately and buyers do not overpay for the oil they take custody of.

DXP Manufactures LACT Skids for Crude Oil

Does your operation call for high-quality crude oil LACT units? Want to partner with an experienced manufacturer that can provide you with LACT skids and the support to keep them operating at peak performance thresholds? Interested in partnering with a fabricator that can provide you with expert consulting services?

If so, then DXP is precisely the team for the job. Our talented staff manufactures top-end LACT skids that are seamless to deploy and ultra-reliable. To recap, some of the other benefits of our LACT skids include:

  • Compliance with industry standards
  • A simple leasing program
  • Condensed delivery timeline
  • Quick installation
  • Superior accuracy

Our crude oil LACT units are available for short- and long-term leases and purchases. This flexibility allows you to get the equipment you need for the desired term without the hassle. To learn more, contact DXP, the industrial distribution experts.