[CAT® OIL & GAS] Filter & Fluid Choices That Pay Off — Literally

Chris Berrie: Hi, I'm Chris Berrie, a sales manager here at Caterpillar. Welcome to Cat® Power Podcast, a series of podcasts focused on various subjects within oil and gas. We're here today to talk about something that you may not have given much thought to, but that may have a big effect on your costs and downtime. I'm talking about filters and fluids. Caterpillar's filtration expert, Tim Styfhoorn is joining me here to share his insights into why it pays, literally, to pay more attention to these often overlooked consumables. Tim, welcome to the call.

Tim Styfhoorn: Thank you, Chris.

Chris: Tim, let's start with a question we hear from our customers very often. Caterpillar makes filters and fluids, but so do a lot of other companies. Why shouldn't I buy just the cheapest one?

Tim Styfhoorn: That's a great question. I get that asked a lot to me by customers, and dealers, and even competitive customers. You know, they're running competitive equipment. Why is it important for Caterpillar, especially Caterpillar equipment to use a cat filters and fluids? Answer is, we call it the Caterpillar System. We start developing those filters and fluids when we start developing the new engine, or transmission, or components. We start right at the very beginning, when they start figuring out what the engines are going to be. We've got the engineers working on new capability. We've got tighter tolerances. At same time, they're like, "Okay, we really need to develop a new filter." So we start that at the very beginning. Looking at what oil, if we need to develop a new oil, or if current product is capable of really protecting that Caterpillar equipment for your oil and gas systems. We're the only filter and fluid manufacturer that can produce this to our Cat specs. We talk about starting at the beginning, developing that engine, we're developing those filters and fluids at the same time. Only we know what those new systems are going to be, and what needs to be done in the filters and fluids space to protect those new systems. Tolerances are getting much tighter, so we're working with that in mind to develop those new filters. Always get asked the question too, along with that, when we talk about these Cat systems, Donaldson makes the Caterpillar filters. Or, other cases in different areas of the world, we hear this company makes Caterpillar filters. Caterpillar manufacturers its own filters through AFSI, Advanced Filtration Systems Incorporated, or our fuel and lube. We do have, in the case of Donaldson, does make a few filters for Caterpillar. Again, those are two Caterpillars specs. The Cat filters and engineers, working with the engine and transmission engineers, the only ones that know what those filter specs need to be, in order to optimize that capability for that customer. That's how we know our filters are correct, and they're going to maximize that value for the customer, and get his total cost of ownership as low as it can be. That is across the board with Caterpillar. Anytime we come out with a filter, it's our specifications, our design behind it. Even if we do have somebody manufacture for us, by contract, that is our product.

Chris: Tim are all filters created equal? Why do the specs matter so much?

Tim Styfhoorn: The specs definitely matter, because always working to get more horsepower, more torque, more capability out of the engines and transmissions. Those features that are designed in those filters, to optimize a capability, is what gets that value for that customer, gets that most horsepower that they're looking for, or it gets the most torque in the system that they need. Also, at the same time, it's maintaining the cleanliness of that, to continue to provide that capability of that engine to them, for the life that they're looking for. With our filters, the media pack that we designed for it is very specific to that system. As I mentioned before, when we're developing a system that media pack is one of the main pieces of it. What is the rating of that media pack? How good does it need to be at a specific micron, or we call it level with efficiency? We always talk about how efficient, or how good, is the filter at pulling out the contaminants. When we're working through that, that's the main point of protecting that system and those components. If you've got a different brand, you may have a different design than the Caterpillar filter. They, again, are always making a filter to sell filters. At Caterpillar, we're making the filters to protect that customer's investment.

Chris: Are all filter, and filter brands, really that different? From the outside, one filter might look just like another. Can you help take us inside the casing? How are they different?

Tim Styfhoorn: One of the big things we do differently at Caterpillar, is always going into our spiral roving, and our nylon reinforced center tubes. Let's talk about that a little bit more. We use nylon reinforced center tubes, because it eliminates metal that's part of the filter itself. One of the things we're trying to protect is the engine from metal components. We want to pull those out and keep them. To minimize the amount of metal in the filter design is just another piece of that. We use a non-metallic sinner tubes, in order to protect that system. Plus, are actually about 30% stronger than the metal center tubes for testing that we've done. Again, helps with pressure spikes or cold starts. We're always trying to protect that system. When we talk about those metal center tubes, they can have contaminants from just the manufacturing itself, which can lead to premature wear, or worst case scenario, could cause a failure itself. If it gets caught, or really damages an injector in the case of the fuel systems, or potentially causes damage to a turbo, in the case of the loop systems. It's very difficult to see that unless you filter apart, in the case of Cat filters, versus a competitor. In the oil side, that's really difficult at that point in time, because Cat oil, looking at another oil, it's hard to see. You can see the color difference, maybe, or color difference between types of fluids. But, until you really get into how that fluid is working in that system that it's in, we talk about diesel engine oil, or transmission. It's how well it works and how well protects the system. That's that thousands of hours of testing we put into each engine, let alone the hundreds of thousands of hours, every time, of Cat fluids on different systems. Each engine is actually tested to optimize that capability.

Chris: Thanks Tim. There's clearly a lot of difference in the design and construction of these filters, but what does that translate to in the real world?So the big difference in the real world is, "How well does that system maintain this capability, and how well can we protect those components?" One of the big things Caterpillar has done, in the last few years, is really test the filters against competitive products. I'm talking to premium competitors, your Baldwin, Donaldson, Fleetguard, and Wix. We did the initial test in the fuel filters, looking at the advanced efficiency fuel filters. The part number is 1R-0749, which most people that have been around Caterpillar, and Caterpillar engines, that is one of the number one fuel filters. It's been around for many years, that part number has. We tested the competitive products against that. The only one that completed the test at the end, was the Caterpillar. That test was actually very difficult, because we were trying to simulate a harsh environment, at an accelerated test, but more what happens to the filters in the field. If you compare normal lab tests, fluids the same temperature, the flow's the same, nothing's really different. When you look at a Caterpillar engine or transmission in the field, there's always things going on. The temperature is not always the same inside the enclosure, or outside ambient temperature. It has a huge variations. Especially with Caterpillar being all over the world, we know we have to protect that no matter where it's at in the world, and what conditions that are running in. This test really showed what happens when you put a Caterpillar against the competitors. Again, I said the Caterpillar was the only one that reached the end of the test, at 50 hours. What that translates to is 45 to 83% longer than the competitors. In the end, for the customer, early hour injector failure can cost them quite a bit in not only downtime, but the components. Does that system or engine, is it working in conjunction with other engines, or components in the field, that if it goes down, the whole work site stops. That can cost a lot of money for a customer. That's why we're really looking at how do we make sure we keep those operating costs down, but also protect that system the best way that it can be. One of the things we did too was, when we came out with our new Ultra High Efficiency Plus Fuel Filter, was we ran that same test. When we said how good the Cat filter was on the advanced side efficiency, that Ultra High Efficiency Plus was another 34% better than Advanced High Efficiency. We're always working to optimize, "How can we improve in the filters and fluids space," to get that customer value they're looking for, and expect from Caterpillar.

Chris: Let's change gear a little, and talk change intervals. Can you comment on change intervals with Cat fluids and filters? I know a lot of oil and gas operations are pressed for time and resources, and they'd love to find new ways to extend these intervals, without running into performance issues.

Tim Styfhoorn: We hear that a lot in the filters and fluids team. I talked to a lot of customers, different areas of the world, and that's one of the big things that I've been focusing on is optimizing the change intervals for customer. We always make sure that you follow the recommendations on the OMM. With that being said, if you want to really optimize and get that capability out of extended drains, or extended preventative maintenance, work with the Caterpillar dealer or your rep. With the Cat system, is what we always call it, is that filters, fluids, and SOS. The SOS is the Scheduled Oil Sampling, which is our Caterpillar fluid analysis program. That's been around for about 50 years, and we have a lot of information, and a lot of data collected over those 50 years, to really know what these engines are capable of. We always say, "You got to use Cat filters, and fluids, and SOS." We really do this, and we built in that capability, knowing that we can increase the drain, but still protect that system, and get the capability out of those engines and transmissions, without putting extra risk into running those extended drains. The process we do with it is, working with the dealer, or with your rep, run an SOS with the Caterpillar oil, and continue to monitor that until we get to the point of what we try to accomplish. In this case, we're going from 250 to 500 hours, or 500 hours to 1, 000 hours. We have systems that have gone even well above 1, 000 hour drains. We still run that same process. Caterpillar fluids, Caterpillar filters, and then we keep running an SOS sampling, in order to show that system is still being protected, and we continue to optimize that drain interval. When we look at those SOS samples, what we're really looking for is to make sure that we catch any premature failure, and get that corrected before it becomes a larger deal. I always say, "With the Ca oil, I'm really not looking to see if the Caterpillar oil is breaking down, especially at 250, 500 hours, 1,000 hours. I'm really looking to see what else is going on that engine, to make sure that if there's something that needs to be repaired, it can be repaired before there is a major problem. Potentially a turbo wearing out, or as we were talking earlier, the injectors, to make sure that we're seeing something, we get it repaired quickly, so we still get that best value out of that system that they're working with. Also, when you're able to extend the drains, one of the big things is, less downtime, less waste, because your used oil goes down, and translates into much lower cost and better capability.

Chris: Let's dial into the SOS topic. How does someone get started with the SOS service program and figure out which are the right fluids, and the right filters for their cat equipment?

Tim Styfhoorn: The best way to start is through your operation and maintenance manual. It talks about what the fluids and filters that you need for your system are. Again, there's always potential to upgrade. When we talk about Advanced Filtration Filters, versus Ultra High Efficiency Filters. They are easy ability to upgrade, when needed, if we're trying to really maximize a drain interval, and we're trying to get to 2,000 hour drain intervals on a specific system. There's upgrades that can help with that. It comes with the filters and fluids program, but contact your Cat dealer. They're going to be a great resource in getting you that first sample bottle. Walking you through how to take that sample. Most of the new equipment and engines have what we call an SOS port on them, makes it really easy to take a really good, proper fluid sample. That way you're going to get your best readings, and get the best information that you can for your specific engine or transmission. We always talk about Customer Value Agreements, or CVAs; filters, fluids, and SOS can be part of that. By being part of that, we can work with you to protect that system. Optimize the drains. Get the best capability, and really show value of that Caterpillar system solution, which is that filters, fluids and SOS.

Chris: Tim, what if I'm a customer with a mixed fleet? Can SOS support non-Cat iron?

Tim Styfhoorn: Yeah, that is a great question. Caterpillar SOS will support any mixed fleet equipment. It doesn't matter the manufacturer. We can work with them to pull the oil samples on them, run the analysis, and they'll provide that same great feedback they would provide for a Caterpillar piece of equipment, for a non- Caterpillar piece of equipment. There again, we're helping the customer, and developing that relationship, which gives that best capability there possibly can be. The fluids are the same way. The fluids can go into mixed fleet. Whatever you have, we have a fluid that is capable of going into there. We always talk about Caterpillar fluids going above and beyond the basic specifications. We meet those specifications that can go into mixed fleet equipment, but we've gone above and beyond that, in order to really optimize the capability.

Chris: Tim, thanks for joining today, and taking the listers and I'm myself through Cat filtration.

Tim Styfhoorn: Thank you for having me.

Chris: For more information about Cat filtration, please visit cat.com/oilandgas, and follow us on LinkedIn or Facebook, at Cat Oil & Gas. Thanks again, and see you soon.