Page 23 - Cost_Competitiveness
P. 23
23
The Institute of Cost Accountants of India
Typical schedule for E&P project
at various points along the value chain pipelines in various regions of the world.
for a variety of reasons, including security
of supply and price hedging/speculation. Natural gas may be stored underground
in a variety of methods, most commonly
Crude oil is stored in large-diameter in depleted reservoirs, aquifers or salt
holding tanks and is transported by caverns. The transport options for gas
pipeline, truck, railroad and/or tanker to depend on its physical state. Natural
refneries for processing. gas liquids can be transported either
by pipeline or tanker truck, but dry gas
Refneries, which traditionally have been (methane) can only be transported by
located near major import hubs to limit pipeline, and even then not across the
additional transportation charges and seabed of deep oceans, which severely
to be close to oil product demand limits the ability to trade natural gas
centers, purchase the crude on the between different regions of the world
open market or directly from producers. (clearly the costs for such pipelines might
Having completed the refning process, also be prohibitively expensive). An
oil products can be distributed by the option for long-distance gas exports is
same means as crude oil. Road transport liquefed natural gas (LNG), which will be
is probably most common, but there also described in more detail below.
exists an extensive network of product
www.icmai.in
The Institute of Cost Accountants of India
Typical schedule for E&P project
at various points along the value chain pipelines in various regions of the world.
for a variety of reasons, including security
of supply and price hedging/speculation. Natural gas may be stored underground
in a variety of methods, most commonly
Crude oil is stored in large-diameter in depleted reservoirs, aquifers or salt
holding tanks and is transported by caverns. The transport options for gas
pipeline, truck, railroad and/or tanker to depend on its physical state. Natural
refneries for processing. gas liquids can be transported either
by pipeline or tanker truck, but dry gas
Refneries, which traditionally have been (methane) can only be transported by
located near major import hubs to limit pipeline, and even then not across the
additional transportation charges and seabed of deep oceans, which severely
to be close to oil product demand limits the ability to trade natural gas
centers, purchase the crude on the between different regions of the world
open market or directly from producers. (clearly the costs for such pipelines might
Having completed the refning process, also be prohibitively expensive). An
oil products can be distributed by the option for long-distance gas exports is
same means as crude oil. Road transport liquefed natural gas (LNG), which will be
is probably most common, but there also described in more detail below.
exists an extensive network of product
www.icmai.in
