Average Pipeline Cost in Louisiana

Operators should consider the market average before making purchases on their oilfields. Cost-effective decisions can be made when you know the average market price for services and supplies needed. This article will demonstrate the market average on pipes in Louisiana. This graph is a visual representation of the average price per foot. It is separated into four categories and each category has two prices, the green bar represents the lowest price found in the market and the orange represents the market average cost of the pipe.

The prices on the graph are relative to the specifications of pipes with a 2-inch diameter and Schedule 40 wall thickness. The market average for these pipes in Louisiana is about $3.20 per foot.

Pipes are categorized by their specifications which include: the type of material, the grade, size of the outer diameter, wall thickness, and type of connection. The connection methods of the pipe are seamless or welded. Welded pipes are usually quoted cheaper due to the difference in cost during processing. The pipes can also be coated if desired which costs about a dollar more per foot.

The graph separates the price per foot into four categories: Used uncoated, New uncoated, Used coated, and New coated. The categories are distinguished by used and new pipes, with and without coating. Therefore, “Used uncoated” would mean used pipes without any coating. Pipe coating can come from the supplier as well, but most rely on an outside manufacturer for coating which increases the price of the pipe. Since suppliers carry a wide variety of pipes, it is important to find one that will meet your needs and fit your budget.

Supply Company and Rates

The lowest price for “Used uncoated” was $0.64 per foot with the average being $1.75 per foot. The “New uncoated” went as low as $2.10 per foot at an average of $3.20. “Used coated” was at $2.35 per foot with an average market price of $3.25 per foot. The “New coated” was lowest at $3.20 per foot at an average of $4.50 per foot. In this analysis, you can see how coating raises the price per foot but is still available at an affordable rate.

Leveraging the market average is one proven way you can lower your operational costs and ensures you are not overpaying for services or supplies. As a data management platform, providing the market average on oilfield service providers is one of the many ways Petrofly reduces operational expenditure. Petrofly’s database of service providers all over the country lets you utilize the service market average for your oil and gas business.

Workovers are the most common expenditure operators need on their oilfields. However, finding a service provider and getting their rates are not readily available in the industry. Operators would benefit from knowing the market average for a workover and gain reassurance they are getting a fair price for their services.