oil pipeline construction cost
oil pipeline construction cost
(OP)
How could I find the cost formula and factors to determine the capital and total cost of a pipeline coating,material and the tank?
Are there any formula or graphs that i could use them?
I found formula for the equipments such as pumps,joints...etc
Are there any formula or graphs that i could use them?
I found formula for the equipments such as pumps,joints...etc





RE: oil pipeline construction cost
If you are laying 8-inch and smaller, you have options to steel like RTP spoolable pipe that costs more for materials, but costs much less for labor. For most sizes you can use HDPE which costs less for materials, but costs a lot more for labor.
What I'm trying to say is if anyone posts what you are looking for, it will be wrong for your job, and it might be very wrong. I recently post appraised three big jobs that were priced via these rule of thumb tables and in one case budget was 5% of actual, in another it was 40%, and in the third it was 22%. I haven't ever come across one of these rule-of-thumb tables that gave me a number higher than we ended up spending. I developed a table once for my projects at my company, and actuals were generally within 10% of budget. A colleague at the same company used them and his project wasn't close to budget.
One thing that has seemed to hold true for steel jobs across companies and engineers is that the final non-engineering costs of a buried, welded steel job is going to be somewhere close to 60% labor and 40% materials. So if you get a quote for materials (include pipe, valves, fittings, coatings, and manufactured items) you can simply divide by 0.4 and get a pretty good feel for how big the non-engineering part project is. Before our addiction to PSM, I would add 15% to the materials-derived project cost for engineering, but today it should be closer to 40%. Finally I add a 15% contingency to the total of engineering, materials, and field labor for a budget number. Most of my projects are under budget by 3-10%.
David Simpson, PE
MuleShoe Engineering
In questions of science, the authority of a thousand is not worth the humble reasoning of a single individual. —Galileo Galilei, Italian Physicist
RE: oil pipeline construction cost
PS, Not sure why this is posted in the chemical plant section and not the "pipelines" one?
My motto: Learn something new every day
Also: There's usually a good reason why everyone does it that way
RE: oil pipeline construction cost
I once applied the $/dia-in-mile approach to a short pipeline (5 km).
Turned out, as discovered in excavating the trench (since the Client would not pay for the recommended geotechnical along the ROW...blah blah blah), the line needed 2 km of rock shield.
A significant AFE supplement ensued.
The geotechnical assessment, in retrospect, would have been comparatively cheap. It wouldn't have eliminated the need for rock shield but at least the project economics could have been correctly evaluated prior to buying the pipe and opening up the trench.