ASSOCIATION OF OIL PIPE LINES

1
ASSOCIATION OF OIL PIPE LINES
The API Pipeline Benchmarking Survey

• 2002 Accounting Committee Meeting
• September 26, 2002

2
API Statistical Services

• Two Statisticians, two Statistical Analysts, and
  one Systems Analyst
• 70 years of Benchmarking and Data Collection
  Experience
• Benchmarking
• Software Development
• Industry-wide Surveys

3
Why Benchmarking?

• Establish measurable goals and objectives
• Identify performance gaps and reallocate
  resources
• Assess strategies
• Identify strengths and weaknesses
• Determine drivers

4
APIs Approach

• Company-focused
• Creation of baseline models for comparison
• Build correlation models
• Company interaction within anti-trust guidelines

5
The API Pipeline Benchmarking Survey (PBS)

• Simple format, but powerful measurements
• Biennial process
• Dynamic
• Accessible

6
The Survey Process

• Technical Working Group
• API Review
• Draft Report
• Final Report
• And then it starts all over again

7
2001 PBS Form
8
Survey Results

• Base Product
• Enhanced Product (optional)

9
The Base Product

• User-driven spreadsheet
• Twenty-five data tables (with almost 400 data
  points!)
• 5 customizable charts (to create 1280 possible
  graphs!)

10
An Example of an Data Table
11
Customization

• API provides customized, electronic reports for
  each participating company, where data
  confidentiality is not compromised.
• Aggregate Peer
• Crude P L,S
• Refined P L,S
• Total P L,M,S

12
Illustration of a Customized Chart
13
Regression Analysis(The Enhanced Product)

• Correlation as a useful tool
• Regression to identify variability
• Regression as a comparison tool

14
Correlation Methodology
15
Illustration of Gap Analysis
16
The API Advantage

• Experience and History
• Participant-driven
• Minimal Cost
• Customizable
• Electronically delivered
• Confidentiality
• Anti-trust guidance

17
How to Participate

• Base Product the Survey
• 2,000 per company1
• 100/hour for customizable charts
• Enhanced Product
• 1,000 per model2
• 1 Price of 2000 survey. 2001 Survey price to be
  determined.
• 2 Cost can be split between companies requesting
  the same model.

18
The 2002 Survey

• October 29, 2002
• API Offices
• Washington, DC
• Information www.api.org/pbs

19
Questions?
20
Contact

• Robert Suriano
• American Petroleum Institute
• Policy Analysis Statistics
• 1220 L Street, NW / Washington, DC 2005
• PH 202-682-8507
• Fax [phone]
• surianor_at_api.org
• http//www.api.org/pbs