A Proposed Methodology for Analyzing the Naval Petroleum Reserve Number One, Elk Hills, California, Pipeline Construction Decision.
Abstract
Public Law 94-258 requires that a transportation system capable of moving 350,000 barrels of crude oil per day from Naval Petroleum Reserve Number One, Elk Hills, California, to market be provided by the Navy. Analysis of this law results in the identification of a problem statement to determine the transportation system which provides maximum net revenue considering the differential costs and revenues of the possible alternative pipeline routes. A methodology is proposed under which alternatives can be considered in a common format and aggregated so as to make a rational choice. Costs are based on engineering studies previously conducted. Revenue from the sale of the crude oil is based on the production volume multiplied by the well price of the crude. This well price is determined by establishing refinery market locations, flows, and prices and subtracting transportation costs back to the well. Revenue from operation of the Navy owned portion of the transportation system is based on the projected pipeline tariff and flow rate. Application of the methodology to alternative systems under consideration by the Navy is done in order to illustrate the methodology and to provide information relating to alternative choice. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1977
- Accession Number
- ADA044368
Entities
People
- Bernard Louis Rabold Jr
Organizations
- Naval Postgraduate School