RI 2164 Oil Pipe Lines

"It is well known by all who are familiar with the oil industry in America that the oil pipe line is as fundamentally a part of this industry as the railroad is of most other American industries. The oil pipe line was first introduced about 56 years ago, and since that time has so demonstrated its superiority as a means of carrying crude oil froze the well to the refinery, that this method of transportation has largely superseded all others. This has made possible the building of refineries in or near the large consuming centers, rather than at the wells, which are usually remote from the centers of population.The pipes for conveying the oil are laid on the surface of the ground, or at a depth varying from 18 inches to 3 feet beneath the surface, and the main lines are generally eight inches in diameter. The oil is forced through the pipes by means of pumps operated either by steam or by internal combustion engines. The pump stations are located from 1 1/2 to 90 miles apart, varying with the condition of the country through which the pipe lines extend, and the viscosity of the oil to be handled.Some of the larger pipe-line systems and hundreds of miles in length. It is estimated by the U. S. Geological Survey that the total mileage of oil trunk lines in the United States today is approximately 34,000, and that the gathering systems, which are a fundamental part of the trunk systems, aggregate about 11,500 miles in length, making a total of 45,500 miles.Using those figures as a basis, some general conclusions as to the investment represented will be made. At the time most of the lines were constructed, the average cost per mile based on eight-inch pipe was about $6,500. The cost of the average pump station at that time varied from $130,000 to $250,000. The cost at the present time, on account of the increase in price of labor and materials, would be much in excess of these figures. The fixed investment in pipe lines is, therefore, very extensive. It corresponds closely with the actual cost of the property, and is estimated to be approximately $500,000,000."