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Re: None

Wednesday, 07/23/2014 7:45:48 PM

Wednesday, July 23, 2014 7:45:48 PM

Post# of 57057
Many underestimate the difficulty to extrapolate the effect of only 1 AOT on a whole pipeline. If for example you theoretically need 100 AOT to outfit an entire pipeline and create a 10% increase in flow, 1 AOT would just create 1/100 of 10% which is 0.01% of flow increase (even if some cannot fathom the continuous nature of this hydrodynamics effect). If you put your AOT at a chokepoint you could see a better increase, but still only in the 1% range. Add to this the other parameters such as temperature and oil types. The KM 1 vessel AOT will bring new datas as the scale is smaller and maybe also the length of the pipe which could increase the perceived % effect. It is on those extrapolate results that the pricing will be made. I am certain that the AOT testing exceeds expectations, but the extrapolation difficulty remains. So no worry for a fews extra weeks of testing ...