Stay Connected

Proper method boosts decommissioned pipe value

12/06/2010
David HowellPipeline EquitiesHoustonPricing decommissioned line pipe above scrap requires proper valuation methods and handling. Contractors and equipment operators who fail to understand the potential value of good structural grade steel pipe can inadvertently reduce its potential market price to what it will bring at the local scrap yard.The standard formula for determining the overall value of a pipeline that has throughput uses the net operating income multiplied by a time life number, e.g., $450,000 × 10 years = $4,500,000. The Replacement Cost New method offers an alternative valuation based simply on the replacement cost of the pipeline at today's cost depreciated to reflect ...
read-story

Why Register?

Non-subscribers can only view whitepapers by providing name, home and email address, phone number and other information and comment on/rate articles.

Why Subscribe?

Oil & Gas Journal subscribers with login credentials can access these premium features of OGJ Online:

  • Current Issue – an html version of the current week's issue of Oil & Gas Journal.
  • Past Issues – An Electronic OGJ Archive. A keyword-searchable archive of all issues of Oil & Gas Journal dating back to 1990; also searchable by issue date.
  • Market Journal – a weekly round-up of the oil and gas markets, with observations from leading analysts.
  • Editor's Perspective – a short article of insight and opinion by the Editor of Oil & Gas Journal.
  • OGJ Industry Stats – quick access to current industry statistics from Oil & Gas Journal.
  • OGJ Survey Downloads - quick access to exclusive reports from Oil & Gas Journal.

 

Subscriber Help or Subscribe

Oil & Gas Journal Subscribers: Have your subscription number (from the mailing label on the cover of your Oil & Gas Journal) and e-mail address ready to set up your online account through Customer Service Assistant.

If you're not an Oil & Gas Journal subscriber, start a subscription and gain access to the subscriber areas of OGJ Online now.