Re: Tank cars -vs- Pipelines & Trucks


FRANK PEACOCK
 

Gentlemen, Finally a subject that I feel that I can comment on: Petroleum transport costs. Ships were cheaper, Texas to Bayway, NJ for example. In 1952 from Colorado City, Texas to Bayway: a. Pipeline $0.780/BBL; b. Railroad $2.830/BBL; Tanker $0.655. Note that Colorado City is a ways away from the Texas Gulf Coast, so some of the aforementioned cost was for PL T'port. For example for the tanker there was a gathering charge of $.055, a PL tariff of .200. The source that I used for this information is The Growth of the Integrated Oil Companies-McLean &Haigh, mostly page 184. The authors do make the point that it is difficult to generalize because costs can vary widely depending on volume, distance, terrain. Colorado City is on the eastern edge of the Permian Basin of Texas/NM. FHP (Frank H. Peacock)

To: STMFC@...
From: thompson@...
Date: Thu, 8 Mar 2012 19:02:39 -0800
Subject: Re: [STMFC] Re: Tank cars -vs- Pipelines & Trucks




























Tom Birkett wrote:

Usually pipeline transportation was cheapest followed by water
(coastal or river), then rail and truck.


Sure, once you have a pipeline. If not, always cheaper NOW to use

a ship.



Tony Thompson Editor, Signature Press, Berkeley, CA

2906 Forest Ave., Berkeley, CA 94705 www.signaturepress.com

(510) 540-6538; fax, (510) 540-1937; e-mail, thompson@...

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