Skip to main content

May 19th, 2025 | Blog | Uncategorized

Protecting Oil & Gas Production is Only Getting Tougher

As production environments grow more extreme and operations increasingly rely on digital systems, protecting critical electronics in the field has never been more essential. Heat, dust, corrosion, and harsh conditions continue to drive equipment failures across top-producing oil and gas regions. Meanwhile, supply chain pressures and tighter safety regulations have raised the cost of failure – both financially and operationally.

That’s why oil and gas operations rely on Class I, Division 2 (C1D2) certified enclosure cooling systems. These systems provide reliable protection in hazardous locations, supporting uptime, compliance, and long-term equipment performance.

 

What is a Class I Division 2 Enclosure?

A Class I, Division 2 cooled enclosure is designed for environments where flammable gases or vapors are not typically present but could become hazardous under abnormal conditions. These enclosures are certified¹ to prevent ignition from internal sparks or heat, reducing the risk of fire or explosion. EIC Solutions’ ThermoTEC™ Class 1, Div. 2 Series: is engineered specifically for these conditions, with the added security of thermoelectric air conditioning and NEMA 4X, stainless steel construction to protect electronics from the extreme environments common in oil and gas operations. Opting for a rugged cooling solution like EIC’s provides low-maintenance, high-reliability protection for electronics in hazardous Class I, Division 2 locations.

 

1. Downtime Comes at a High Cost

Unplanned downtime has become one of the most costly challenges in oil and gas operations. Industry-wide, downtime is estimated to cost companies as much as $1.5 trillion annually, according to Energy Media. Within oil and gas specifically, facilities are seeing average losses of $149 million per year due to equipment failures, a 76% increase in recent years. Even short disruptions are expensive: just 1% downtime – roughly 3.5 days – can result in over $5 million in lost production. For upstream operators, the average unplanned downtime per year now reaches around 27 days, totaling up to $38 million in losses.

These numbers reflect the growing pressure on equipment to perform reliably under harsh conditions. Failures related to heat and environmental stress are often preventable with the right infrastructure in place. EIC’s ThermoTEC Series cooling systems are designed to help address this issue by keeping sensitive electronics within safe operating temperatures, even when ambient heat exceeds 140°F. Comprehensive protective solutions like this help reduce the risk of shutdowns, ensuring critical systems stay online and production stays on track.

 

2. Supply Chain Uncertainty Demands Protection

Over the past few years, manufacturers have dealt with persistent supply chain disruptions – driven by post-pandemic backlogs, market instability, and global tensions. For oil and gas operators, that means longer waits and rising costs for critical components. SourceBlue reported a 2.9% increase in equipment pricing between 2023 and 2024, with lead times for some parts still stretching beyond 12 months. With replacements harder to source and more expensive to procure, protecting the equipment you already have has become a priority.

Class I, Division 2 enclosures offer a strategic, proactive way to safeguard essential systems. ThermoTEC thermoelectric air conditioners are built with NEMA 4X-rated stainless steel construction to extend the lifespan of your electronics and reduce wear from environmental stress, minimizing unplanned downtime and costly replacement delays when parts aren’t readily available.

Learn how to match your environment with the right NEMA-rated enclosure in this quick guide.

 

3. Growing Environmental Threats in Major Oil Regions

From extreme heat to corrosive salt spray and deep winter freezes, the U.S.’s top oil-producing states face increasingly harsh environmental conditions that are straining critical equipment. These risks are not hypothetical – they’ve already resulted in production losses and equipment failures across the industry.

  • In the Permian Basin (TX/NM), high heat and airborne dust routinely knock out sensors and compressors. During a record-setting heatwave in June 2023, compressor stations along key gas pipelines were forced to shut down or throttle back, prompting emergency gas venting and the release of more than 300 tons of greenhouse gases. Events like this have pushed regulators to adopt new rules requiring operators to weatherproof equipment against both extreme heat and cold.
  • Conditions like salt spray, humidity, and hydrogen sulfide off the Gulf Coast create a highly corrosive environment. In one 2024 incident, a faulty generator control module – damaged by moisture – failed to trigger an emergency engine shutdown during an over-speed event, leading to an explosion that injured two personnel. Inspection revealed corrosion and delamination on the circuit board, underscoring the risk posed by unprotected electronics in marine environments.
  • In North Dakota’s Bakken region, subzero temperatures create a different set of challenges. During an Arctic blast in January 2024, production in the state dropped by more than 400,000 barrels per day as instrumentation froze and critical systems went offline. Nationwide, similar weather cut U.S. crude output by nearly 24 million barrels that month.

Across all these regions, reliable, temperature-controlled enclosure protection is essential to maintaining uptime and avoiding costly disruptions. Whether the threat is heat, cold, corrosion, or dust, safeguarding electronics from environmental extremes is a practical step toward operational continuity. Purpose-built enclosures like those in EIC’s PROTECTOR™ Series can help reduce risk, extend equipment life, and keep critical systems running when conditions are at their worst.

 

4. Digital Oilfields Are Expanding – So Are the Risks

The digital oilfield – often called Oil and Gas 4.0 – is transforming how companies operate with the rapid integration of technologies like IoT sensors, cloud platforms, and AI in traditional oilfield operations. The global digital oilfield market was valued at approximately $28 billion in 2023 and is projected to reach $38 billion by 2028 – a 6.5% compound annual growth rate. But with more digital tools in the field comes a greater need for reliable protection. Every new remote sensor, smart valve, or SCADA panel introduces another potential point of failure – especially when exposed to heat, dust, or corrosive environments.

As equipment footprints grow and heat loads increase, housing this technology in well-protected, climate-controlled enclosures is critical. Our PROTECTOR enclosures provide an ideal environment to help maintain safe internal temperatures for this new generation of oilfield electronics. More broadly, investing in resilient infrastructure to support digitalization is essential. As the industry modernizes, the ability to protect data-driven equipment is just as important as deploying it.

 

5. Safety That’s Certified Reliable

In oil and gas operations, especially in classified hazardous environments like Class I, Division 2, equipment safety isn’t just a requirement, it’s a frontline defense against catastrophic events. C1D2 areas may only occasionally contain flammable gases or vapors, but when those conditions occur, the consequences of ignition can be severe. Electrical equipment in these zones must meet rigorous standards that address not only performance, but also the prevention of sparks, heat buildup, and other ignition sources. Selecting certified, purpose-built enclosures for oil and gas applications is one of the most direct ways to reduce risk and stay compliant.

Beyond safety, there are operational and financial advantages. C1D2-rated enclosures can help prevent incidents that lead to downtime, equipment loss, or regulatory fines – protecting both operational continuity and reputation. EIC’s C1D2 ThermoTEC Series – certified to UL 1995, UL-823, and ISA 12.12.01 – provides added assurance in fault-prone or high-risk environments. These certifications support safe performance even under duress, making them a dependable option where safety and compliance are critical.

 

The Value of Temperature-Controlled Enclosures

From harsh desert heat to corrosive marine air, EIC’s dependable thermoelectric cooling and temperature-controlled enclosures. are designed to keep critical equipment running where other protection falls short.

  • Certified for Hazardous Locations: UL 1995, UL-823, and ISA 12.12.01 certifications ensure safe performance in Class I, Division 2 areas, reducing the risk of ignition in volatile environments.
  • Solid-State, Maintenance-Free Design: With no compressor, refrigerant, or filters, ThermoTEC units require virtually no maintenance, making them ideal for remote or hard-to-access sites.
  • Precise, Reliable Temperature Control: Keeps sensitive electronics operating safely even in ambient temperatures up to 140°F, helping prevent downtime due to heat stress.
  • Engineered for Environmental Exposure: NEMA 4X-rated, corrosion-resistant stainless steel enclosures protect against dust, moisture, and salt, critical in desert and offshore environments alike.
  • Flexible Mounting and Power Options: Designed to integrate easily with a wide range of enclosures and site conditions, including purged or non-purged setups, 120 or 240 VAC power, and horizontal or vertical installation.

 

Protect What Powers Your Production

The oil & gas industry isn’t short on challenges. From scorching desert pads to salt-air offshore rigs, environmental stressors are real – and increasingly unforgiving. But as downtime costs rise and digitalization accelerates, one thing remains clear: preventing electronics failure is always cheaper than dealing with the consequences.

Class I, Division 2 enclosure cooling systems, like EIC’s ThermoTEC Series, offer a proven, safety-certified, field-ready solution that protects what matters most: your people, your process, and your profit.

Are you interested to learn more about how you can protect your electronics, prevent downtime, and meet safety requirements? Contact our experts about a ThermoTEC configuration that fits your operation.

 

Footnotes:

  1. ThermoTEC units are designed for use in Class I, Division 2, Groups A-D. These units have been certified by a nationally recognized independent testing laboratory to meet the requirements of Heating and Cooling Equipment, (UL 1995 4th edition, October 14, 2011); Electric Heaters For Use in Hazardous (Classified) Locations, (UL-823, October 20, 2006, Ninth edition); Nonincendive Electrical Equipment for Use in Class I and II, Division 2 and Class III, Divisions 1 and 2 Hazardous (Classified) Locations (ISA- 12.12.01-2000, 6 April 2001).

Want to keep updated on launches, events, and updates?