Short answer
When designing or optimizing petroleum supply chains, consider pipelines as a primary mode for their inherent cost efficiencies and effectiveness.
- Field
- Commercial Production
- Source
- Journal of Transport and Supply Chain Management (2010)
- Method
- Literature Review and Analytical Assessment
- Evidence
- Strong effect
Petroleum pipelines provide a highly cost-efficient mode of transport within the broader supply chain due to inherent operational characteristics. This commercial production research insight is drawn from a 2010 study published in Journal of Transport and Supply Chain Management. Using Literature review and analytical assessment, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing or optimizing petroleum supply chains, consider pipelines as a primary mode for their inherent cost efficiencies and effectiveness.
Pipeline Transport Offers Superior Cost Efficiency in Petroleum Supply Chains
Petroleum pipelines provide a highly cost-efficient mode of transport within the broader supply chain due to inherent operational characteristics.
Journal of Transport and Supply Chain Management · 2010
Key Findings
- 01Pipelines are a cost-efficient component of petroleum product supply chains.
- 02Specific service performance measures highlight the effectiveness of pipeline transport.
- 03Pipelines are efficient in identified segments of the petroleum products supply chain.
Application
Design takeaway
When designing or optimizing petroleum supply chains, consider pipelines as a primary mode for their inherent cost efficiencies and effectiveness.
How to apply
Evaluate the total cost of ownership for different transport modes when planning new energy infrastructure or redesigning existing supply chains.
Project actions
- 01When researching transport options for a product, always investigate the cost-effectiveness of pipelines if applicable.
- 02Consider the scale and consistency of demand when evaluating pipeline feasibility.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a clear economic rationale for pipeline use in the petroleum industry.
- +Compares pipeline effectiveness against other relevant transport modes.
Limitations
This study might not cover the initial high cost of building a pipeline or the environmental risks associated with them.
Reliability & validity
The findings are based on an analytical assessment of logistics aspects, suggesting moderate reliability for general principles but requiring specific data for precise quantitative validation in diverse contexts.
Think critically
Beyond cost efficiency, what other factors (e.g., environmental impact, security, flexibility) should be considered when comparing pipeline transport to other logistics options for petroleum products?
Design Principles
"Prioritize infrastructure that offers the lowest operational cost per unit for high-volume, continuous flow of commodities."
Understanding the cost advantages of pipeline transport is crucial for optimizing logistics strategies in the energy sector. This insight informs decisions about infrastructure investment and supply chain design, impacting profitability and market competitiveness.
What This Means for Your Design
Pipelines are a cheaper way to move oil and gas products compared to trucks or trains because they can move a lot of product continuously without much human effort.
How to use in your project
- 1.Reference this study when justifying the selection of a particular transportation method based on cost and efficiency in your design project.
Add to My Project
Quick Cite
Paragraph starter
The commercial operation of petroleum pipelines demonstrates significant cost efficiencies within the broader supply chain, as highlighted by Pienaar (2010). This research indicates that pipelines offer a superior service effectiveness for petroleum products based on key performance measures, making them a highly economical choice for specific segments of the supply chain.
Source
Journal of Transport and Supply Chain Management
Logistics aspects of petroleum pipeline operations
journal · 2010
View sourceQuestions About This Research
- What does the research say about pipeline transport offers superior cost efficiency in petroleum supply chains?
- When designing or optimizing petroleum supply chains, consider pipelines as a primary mode for their inherent cost efficiencies and effectiveness. Evidence: Journal of Transport and Supply Chain Management (2010).
- Why does "Pipeline Transport Offers Superior Cost Efficiency in Petroleum Supply Chains" matter for design?
- Understanding the cost advantages of pipeline transport is crucial for optimizing logistics strategies in the energy sector. This insight informs decisions about infrastructure investment and supply chain design, impacting profitability and market competitiveness.
- How can designers apply this research?
- When designing or optimizing petroleum supply chains, consider pipelines as a primary mode for their inherent cost efficiencies and effectiveness.
- What were the main findings?
- Pipelines are a cost-efficient component of petroleum product supply chains.. Specific service performance measures highlight the effectiveness of pipeline transport.. Pipelines are efficient in identified segments of the petroleum products supply chain.
- What research method was used?
- Literature Review and Analytical Assessment.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2010 journal from Journal of Transport and Supply Chain Management.
- What should I do differently in my next project?
- Evaluate the total cost of ownership for different transport modes when planning new energy infrastructure or redesigning existing supply chains.
- What are the limitations?
- The analysis focuses primarily on logistics and cost aspects, potentially overlooking other critical factors like environmental impact or flexibility in product types.