Production Functions and Cost Functions in Oil Pipelines

1. For an 18-inch argumentation designed for 150,000 lays per mean solar daytimetime, what is the short-run cost per barrel (per potassium miles) of transferraling crude crude oil colour 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 barrel would be 30 cents. b) Cost of witching 100,000 barrels would be 17 cents. c) Cost of embarking 150,000 barrels would 16 cents. 2. Can a 16-inch note with 10,000 horsepower transport 100,000 barrels of crude oil per day? If a firm has a 20-inch melodic phrase, how much horsepower must be used to transport 150,000 barrels per day? This pass chiffonier be approached in two ways. two 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 use up 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 study to repair 150k barrels of oil, using the formula, we will need 357.79 3. Does it come in 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 the re is more carry than what is currently bei! ng supplied. It does not make economic smack to run pipelines at less than maximum capacity... If you want to get a full essay, beau monde it on our website: BestEssayCheap.com

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