Method developed for benchmarking pipeline operators' performance

Hank Brolick, Roger Holden, Rick JonesA new and more accurate divisor has been developed that better reflects the diversity in pipeline capacity and complexity.Called Equivalent Pipeline Complexity (EPC), the method is a result of a comparative performance analysis by Solomon Associates, Dallas, of pipeline, terminal, and marine operations commissioned by a group of seven European oil pipeline companies in 2000 (OGJ, Oct. 14, 2002, p. 64).The earlier article described a method for comparing cash operating expenses using replacement value as the prime divisor for the European study. While replacement value represents a marked improvement over traditional divisors, such as bbl-miles (tonne-...

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