Review Chapter 3.7: Pipeline Transport

Which image illustrates Pipeline Transport?

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Market structure of Pipeline industry has:

• Low startup costs and complex procedural requirements

• High startup costs and simple procedural requirements

• High startup costs and complex procedural requirements

• Low startup costs and simple procedural requirements

Water carriers are principle competitors due to:

• Small number of companies

• High capital costs

• Low service rates

• Competitive rates and costs

Pipelines can haul:

• Rice, chemicals

• Chemicals, oil

• Animals

• Food, coal

Which is Strength of Pipeline Transport?

• Low service rates

• Low delivery dependability

• High speed

• Unlimited variety of products carried

Gathering lines have relatively ... distance movement.

• High

• Long

• Short

• No

Which of the following characteristics is of Crude Trunk Lines?

• Short distance movement

• Small diameter laid underground surface

• Long distance movement

• A and B are correct

Finished product trunk lines move product:

• From market area terminals to refineries

• From gathering stations to tank farm or refineries

• From refineries to market area terminals

• From the fields to market area terminals

Key fixed costs include:

• Property taxes, labor costs

• Return to investors, cost of fuel

• Property taxes, return to investors

• No answer is correct

Labor costs and Fuel costs are:

• Inventory costs

• Fixed costs

• Transportation costs

• Variable costs