Pipeline Benchmarking Update

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• Pipeline Benchmarking Update
• George L. Ott
• BP Pipelines, North America

AOPL Winter Meeting November 30, 2004 Washington,
DC
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Pipeline Benchmarking Survey
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Outline

• Survey Development
• Description and Insights
• 2004/05 Plan
• Questions

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Pipeline Benchmarking Survey
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Survey Development

• Principles
• API selection

Retained Allegro Energy Consulting
Allegro/API supplemental analysis offer

• Definitions
• Regressions

• Solomon proposal
• API selection

• 1998/99
• Base package

• 2002
• Systems analysis
• New measures
• Outsourcing
• Allegro supplement

• 2000
• Peer comparisons
• Regressions

• 2004
• Select your peers
• Trending
• Integrity Management

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Participants

• 2002 Participants

• New inquiries for 2004
• Buckeye
• Dow
• Enterprise
• Kaneb
• Louis Dreyfus
• Pacific

Logos of all the companies Too large to mail!
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Pipeline Measures- 2002
control center staff (2)
headquarters staff (10)
of transactions (2)
power consumption
outsourcing (10)
field staff (4)
miles
of tanks
inch diameter-miles
delivered barrels
utilization
barrel-miles
tank capacity
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Pipeline Benchmarking Survey
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Total Expenses
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Field Operating Maintenance
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GA (Overhead) Expenses
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Industry Insights
2002 vs. 2000 Median
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Sample Regression Analysis
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Survey Assessment
Strengths

• Industry designed and driven
• Large mileage and participant base
• Mature study fifth year
• Cost effective
• Relatively few inputs

Opportunities

• Integrity management benchmarks
• Regression analysis
• Resources for interpreting results

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Pipeline Benchmarking Survey
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New Pipeline Measures
control center staff (2)
headquarters staff (10)
of transactions (2)

• trunk transfer points

power consumption
outsourcing (10)
field staff (4)

• tool miles by type

miles

• hydrotest miles

of tanks
inch diameter-miles
delivered barrels
utilization
barrel-miles

• mainline pumps

tank capacity

• number of digs excavations

• pipeline miles by decade

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Pipeline Benchmarking Survey
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2004 Survey Enhancements

• Expanded integrity management measures
• Select your own peers
• Improved regression models
• Selected industry trend analysis
• Best practice sharing sessions
• Company performance analysis (optional)

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Pipeline Benchmarking Survey
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2004 Survey Plan

• Survey results (API)
• User-driven spreadsheets and graphical tools
• Crude and Refined Product subset reports
• Peer analysis (select your own group)
• Five regression models
• Integrity management supplement
• 2.75k

• Optional customized analysis
• Allegro Energy Consulting
• Participant specifies desired reporting package
• Cost estimate is provided
• Itemized billing is payable directly to API
• 5-10k

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Schedule

• Signup January
• Data Acquisition February April
• Draft Report Issued July 1
• Draft Review Comment July-August
• Final Report September 15

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Discussion
AOPL
Pipeline Benchmarking Survey