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Application Advances in New-Technology Flowmeters
Published in Jesse Yoder, New-Technology Flowmeters, 2023
The ability to do custody transfer measurement is one of the most highly prized features of a number of flowmeter types. Custody transfer measurement occurs when the ownership of a fluid is transferred from one party to another. When high value fluids such as crude oil or natural gas are bought or sold, accurate measurement is vital. Payment is generally made based on the amount of fluid transferred, and even a small measurement error can quickly be magnified over time. Emerie Dupuis of Daniel Measurement and Control illustrates this as follows:For example, Pump Station 2 on the Alaska Pipeline is designed to pump 60,000 gallons per minute (227 cubic meters per minute) of oil. A small error of 0.1% equates to an error of 2,057 barrels of oil a day. At a spot price of $105 a barrel, that 0.1% error would cost $216,000 a day. Over a year, the 0.1% error would amount to a difference of $78.8 million. Note that the error could either be on the high side, benefiting the seller; or on the low side, to the buyer's benefit. (Oil and Gas Custody Transfer, by Emerie Dupuis in Petroleum Africa, May 2014).
Background and History
Published in Michael A. Crabtree, The Concise Industrial Flow Measurement Handbook, 2019
Accuracy is of prime importance in automatic blending control, batching and, of course, custody transfer and fiscal metering. In fluid measurement, custody transfer metering involves the sale, or change of ownership, of a liquid or gas from one party to another. On the other hand, fiscal measurement involves the levering of taxes – again relating to the production or sale of a liquid or gas.
Application of a master meter systemto assure crude oil and natural gas quality during transportation
Published in Petroleum Science and Technology, 2018
Jasmina Perisic, Marina Milovanovic, Ivana Petrovic, Ljiljana Radovanovic, Marko Ristic, James G. Speight, Velimir Perisic
Custody transfer (or fiscal metering) is a transaction when fluids or gases are transferred from one operator to another in the transport chain. In these transactions, accuracy is paramount because the payment is usually made in accordance with transferred quantity, and small errors in measurement can propagate and lead to financial exposure in custody transfer transactions. For example, with price of $60 per barrel, the result of an error of 0.1% in a flow of 50,000 barrels per day is over $1,000,000 over the course of one year(Brown, Augenstein, and Cousins 2006). Therefore, measurement requirements related to verification of the quantity of material involved in each transaction are very rigorous. Different industry associations and standards organizations such as American Petroleum Institute (API), Measuring Instruments Directive (MID), Physikalisch-Technische Bundesanstalt (PTB), US National Institute for Standards and Technology (NIST), and others, are responsible for the regulation of custody transfers (Emerie 2014).