Water Droplets on the Crude Line + Heat Tracing or Insulation

Insulate it.

It is dew.

It's condensation of water vapor. It's called the dew point. The line is cooler than the surrounding air and is below the dew point, therefore water is condensing on it.

Why is it a problem?

Anyways, yes, insulate it.

Be wary of the insulation that you use. Water can condense inside the insulation and create a bigger problem than you already have.

Yes, that is an important point, we have to check the insulated piping systems for formation of corrosion under insulation CUI, so we have to prepare a regular checking plan for that CUI to reduce its potential by applying an inspection intervals, methods, and TMLs as indicated at API 570 "Piping Inspection Code: Inservice Inspection, Rating, Repair, and Alteration of Piping Systems".

Only 4 out of 12 wells are in service now and the climate here is always rainy.

When we start the production on a full swing we will be using all the 12 lines and I believe this should cause further depreciation in the temperature. Already now the temperature is 60 F ..My questeion is, If i leave the line without insulation, Is there a possibility of Icing in the future??

Yes. Water begins to freeze at 32° F. So if your ambient temperature goes below that, the water will freeze.

However, if the temperature of the crude is above freezing, it may prevent freezing on the outside of the line.

What, exactly, are you worried about?

Rust?

Thickening of the crude?

If you insulate now, you will be trapping moisture underneath. Not good.

Not knowing anything about your working environment, I can tell you that 3 conventional methods of dealing with this problem are: 1) dehumidify the air in contact with the pipe,2) raise the temperature of the pipe by heating it directly or heating the oil that flows through it, 3) insulate the pipe.

Welderman, I strongly don't agree with any of your suggestions. Crude lines are generally outdoor lines. 1) Impracticable to dehumidify the air in contact with pipe, it may require an enclosure around pipe 2) OP to check, whether technologically feasible, I feel it is highly uneconomical and not advisable, & 3) Feasible but a installation and its maintenance is a costly affair (because condensate may form inside).

As OP describes that "the climate here is always rainy", it appears to be mostly outdoor installation. In fact rain will help to keep pipe outer surface warmer. Ice formation in piping looks to be a distant possibility and even if it is happening ones in a blue moon, it's not a cause of worry. OP should take note of comments 6 & 8 to assess possibility of ice formation.

I notice that although you criticise my suggestions, you don't offer any alternatives. I'm not a pipe-line expert, but I do understand the fundamentals of water condensation. I offered my suggestions based on the physics of moisture condensation from the atmosphere. I didn't include adjusting atmospheric pressure because I thought that might be too impractical. Pipe temperature may be raised simply by increasing the crude pressure and flow rate. In fact, I know of pipe-lines where intermediate pumping stations are installed which do just that. A side affect of keeping the pressure and flow rate higher, is that the oil is warmer, and external condensation is minimized. I've also seen systems equipped with coaxial pipes where the space between the pipes is either evacuated, or filled with dry gas to serve as insulation. OP provided no details about his installation, so I gave clues based in atmospheric physics. How to convert the physics then becomes an engineering problem. If you have a better way, I'd like to hear it.

Sorry welderman, my intention was not to criticise your suggestions, only I tried to look from different angles. In some cases I may be wrong too.

Earlier I was also in a view exactly as you said "A side affect of keeping the pressure and flow rate higher, is that the oil is warmer, and external condensation is minimized." But I did not express as OP says- "Only 4 out of 12 wells are in service now and the climate here is always rainy. When we start the production on a full swing we will be using all the 12 lines and I believe this should cause further depreciation in the temperature." So it indicates that increasing flow is decreasing crude temperature. But OP did not say anything about effect of increasing pressure. Let OP should appear and see the feasibility of solutions suggested.