Production Functions and Cost Functions in Oil Pipelines

1. For an 18-inch argumentation designed for 150,000 lays per twenty-four hourslighttime, what is the short-run cost per barrel (per g-force miles) of transferraling crude cover if the throughput is (a) 50,000 put per day (b) 100,000 lay per day (c) 150,000 lay per day? Using chart 7, a) Cost of shippinging 50,000 put would be 30 cents. b) Cost of witching 100,000 barrels would be 17 cents. c) Cost of reassigning 150,000 barrels would 16 cents. 2. Can a 16-inch descent with 10,000 horsepower transport 100,000 barrels of crude cover per day? If a firm has a 20-inch argument, how much horsepower must be used to transport 150,000 barrels per day? This pass dejection be approached in two ways. both(prenominal) the approaches guard different answers. a. Using Chart 1, a 16-inch pipeline with 10,000 horsepower will NOT be able to transport 100,000 barrels of crude oil per day. The pipeline will posit at least 20,000 horsepower. If a firm has a 20-inch pipeline and wants to transport 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 receive 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 select to situate 150k barrels of oil, using the formula, we will need 357.79 3. Does it get along that thither should be many pipelines competing to transport crude oil everyplace a particular itinerary? Why or wherefore not? I dont think there would be multiple lines competing to transport crude oil over a particular route un little there is more rent than wh! at is currently being supplied. It does not make economic guts to run pipelines at less than maximum capacity... If you want to get a full essay, beau monde it on our website: OrderCustomPaper.com

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