Liquid Pipeline Study

The Liquid Pipeline Study segregates data into categories that most affect operational and financial performance of pipeline systems then normalizes the data to provide accurate comparisons of diverse operations. This detailed analysis provides you with two competitive advantages: the big picture of where you stand compared to peers; and the insights you need to take an informed and targeted approach to improve performance. Uncover insights to improve basic physical facilities, operating expenditures (fixed and variable), reliability of systems, personnel effectiveness and labor use, energy cost and consumption, maintenance, equipment utilization, and pipeline integrity practices.

Solomon experts understand the wide range of diverse operating complexities and physical design characteristics within the pipeline industry. Pipeline systems can vary in number of input and output points, liquid product type, pipeline length, diameter, breakout storage, number of pump and meter stations, capacity, and type of terrain. To accurately compare operating performance between these diverse pipeline systems, the Liquid Pipeline Study analyzes pipeline data using four divisors: diameter-length, utilized capacity, replacement value, and most significantly, EPC. EPC normalizes pipeline performance data while taking adequate account of differences in configuration and complexity, providing an equitable basis for comparing diverse sets of systems.

Simple divisors can mask your true performance level. For example, normalizing data with utilized capacity will show a high-capacity mainline system (pipeline “A”) as a top performer (Figure 1). However, when Solomon’s EPC removes the capacity advantage, the same pipeline “A” is only a third quartile performer (Figure 2). Although utilized capacity is somewhat helpful in comparing pipeline costs, it does not account for the physical design and operational characteristics of each pipeline system (i.e., number of pump and meter stations, length, diameter, power rating, capacity, terrain, and breakout storage) the way EPC does. With EPC as the normalizer, you can realistically identify your competitive position on a like-to-like basis regardless of the physical and operational characteristics of other systems.