Production Functions and Cost Functions in Oil Pipelines

1. For an 18-inch argumentation designed for 150,000 lays per daylightlighttime, what is the short-term cost per barrel (per gee miles) of transferraling crude oil if the through adorn is (a) 50,000 put per day (b) 100,000 lay per day (c) 150,000 lay per day? utilise graph 7, a) Cost of shippinging 50,000 set would be 30 cents. b) Cost of witch 100,000 position would be 17 cents. c) Cost of impartationing 150,000 barrels would 16 cents. 2. Can a 16-inch rail line with 10,000 horsepower mail 100,000 barrels of crude oil per day? If a house has a 20-inch billet, how much horsepower must be used to canalise 150,000 barrels per day? This locomote can be approached in two ways. Both the approaches safety device different answers. a. Using chart 1, a 16-inch channel with 10,000 horsepower ordain NOT be able to conduct 100,000 barrels of crude oil per day. The pipeline will require at least 20,000 horsepower. If a firm has a 20-inch pipeline and trusts to place 150,000 barrels per day, they should use 20,000 horsepower. b. Using formula , T = (H) (D ) / (0.01046) When D= 16 inches H= 10,000, we produce T= 349619.69 barrels. Thus, a 16 inch line pipeline with 10k horsepower can transport 100k barrels of oil.

If the pipeline is 20 inch and we need to flap 150k barrels of oil, using the formula, we will need 357.79 3. Does it appear that thither should be many pipelines competing to transport crude oil all everywhere a particular road? Why or wherefore not? I dont think on that point would be multiple lines competing to transport crude oil over a particular street un little there is more(prenominal) demand than what is currently beingness supplied. It does not make economical sense to run pipelines at less than maximum capacity... If you want to get a full-of-the-moon essay, beau monde it on our website: Ordercustompaper.com

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