Flow chart in the shape of an arrow.
Production & Gathering (Wellhead Cost, Gathering Fees, Fuel)
Leads to
Processing/Refining (processing fees, refining fees, inputs/outputs)
Leads to
Transmission (levels of service, tariffs, rates & fuel)
Leads to
Storage (levels of service, tariffs, rates of fuel)
Leads to
Distribution (utilities, end-users, residential, retail)
Take a look at the value chain for energy commodities (Figure 1 above). Review the lesson slides and think about the various parts of the crude oil value chain. Do some research and extract 5 cost items associated with the value chain.
For example: According to EIA, the transportation cost for shipping crude oil from Cushing, OK to the U.S. Gulf Coast, without pipeline constraints, is estimated to be around $3.50/bbl. (EIA 2017 [2])
You will be graded on the quality of your responses. This question is worth up to 20 points on the EBF 301 grading scale; each question is worth up to 10 points.
The Fundamental Factors activity is due as usual this week, at 11:59 pm on Sunday, and is worth 30 points on the EBF 301 grading scale. Please refer to the Fundamental Factors Instructions [3] for additional information and grading rubric.
Return to Canvas to complete the L5 Quiz.
Value Chain Activity: Submit your work as a Word document to the L5 Activity on Canvas.
Fundamental Factors: Submit your work as a single Word document to the Lesson 5 Fundamental Factors Activity in Canvas.
Quiz: Take the quiz in Canvas.
Links
[1] https://www.e-education.psu.edu/
[2] https://www.eia.gov/todayinenergy/detail.php?id=33752
[3] https://www.e-education.psu.edu/ebf301/node/680