Analysis of Pipeline Operations

wbean

June 30, 2014 19:16

We are working on determining the economic inpact of the operations of a pipeline within a state. The company managing the pipeline has a regional office within the state. The corporate office, as well as a majority of the pipeline, is located out of state. To model the expenses of the regional office we used the 337 code (transportation by pipeline). The direct labor income numbers our model generates appear too high for the number of employees derived through the model. Would setting the proprietary income to 0, since profits from operation would be leaving the state, correct this issue? Are we using the correct code to model the office? Thank you, William Bean

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IMPLAN Support
July 01, 2014 21:20

Thank you for your post! To help understand your question further, what region are you using to build your model, state? or county? Since you mention, the corporate office is out of state, I am assuming you are using county level data to run your analysis. I would recommend using sector 337 as this is the sector also for the Operations of a Pipeline. The type of activities described by this Sector are as follows: Booster pumping station (except natural gas, petroleum) 337 486990 Booster pumping station, crude oil transportation 337 486110 Booster pumping station, natural gas transportation 337 486210 Booster pumping station, refined petroleum products transportation 337 486910 Coal pipeline transportation 337 486990 Crude oil pipeline transportation 337 486110 Gas, natural, pipeline operation 337 486210 Gasoline pipeline transportation 337 486910 Natural gas liquids pipeline transportation 337 486910 Natural gas pipeline transportation 337 486210 Natural gas transmission (i.e., processing plants to local distribution systems) 337 486210 Petroleum pipelines, crude 337 486110 Petroleum pipelines, refined 337 486910 Pipeline transportation (except crude oil, natural gas, refined petroleum products) 337 486990 Pipeline transportation, crude oil 337 486110 Pipeline transportation, gasoline and other refined petroleum products 337 486910 Pipeline transportation, natural gas 337 486210 Refined petroleum products pipeline transportation 337 486910 Slurry pipeline transportation 337 486990 Storage of natural gas 337 486210 Transmission of natural gas via pipeline (i.e., processing plants to local distribution systems) 337 486210 Does this match the work done at the office? If not there might be a more appropriate Sector that would have a better spending pattern as well as more appropriate relationships for the what the office actually does. If you think that another Sector might be appropriate and would like some assistance with finding other Sectors, please let us know. If you'd like to know more about how to see the items each Sector purchases, please let us know and we can point you to that as well. If you have figures for compensation for the office, you can certainly overwrite IMPLAN's values with your known labor dollars. And yes you would set Proprietor to zero if you knew that the pipelines were not owned privately and that there were no royalty payments to owners in your area. You might also consider looking at the value of the Employment Compensation/worker which you can see by hovering your mouse over the Employment Compensation field in the Event, as this might help you to identify what the actual compensation value per worker is. Thank You!

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