Case study cost estimate

Having defined and gathered data adequate for an initial reserves estimation, the next step is to look at the various options to develop the field. The objective of the feasibility study is to document various technical options, of which at least one should be economically viable. The study will contain the subsurface development options, the process design, equipment sizes, the proposed locations (e.g. offshore platforms), and the crude evacuation and export system. The cases considered will be accompanied by a cost estimate and planning schedule. Such a document gives a complete overview of all the requirements, opportunities, risks and constraints. 

The case studies that follow have mainly come from live product development projects in industry. Whilst not all case studies require the methodology to predict an absolute capability, a common way of applying CA is by evaluating and comparing a number of design schemes and selecting the one with the most acceptable performance measure, either estimated Cp, assembly risk or failure cost. In some cases, commercial confidence precludes the inclusion of detailed drawings of the components used in the analyses. CA has been used in industry in a number of different ways. Some of these are discussed below ... 

Cost Indices In some cases, the cost of a piece of equipment is available from a previous study, and it is desirable to evaluate its present cost. Because of inflation and other economic changes, it is necessary to correlate equipment cost as a function of time. In this regard, cost indices are useful tools. A cost index is an indicator of how equipment cost varies over time. The ratio of cost indices at two different times provides an estimate for the extent of equipment-cost inflation between these two times. Hence,... 

CASE STUDY CAPITAL COST ESTIMATION FOR A 150,000,000 LB/YR POLYSTYRENE PLANT USING THE SUSPENSION PROCESS... 

Case Study Capital Cost Estimation Cost of Equipment... 

There is little doubt that computer-aided design techniques can give rise to drastic reductions of time and cost in designing pipeline networks. For small to medium applications Bonansinga (B8) estimated that a job which would have cost 500 by manual solution could now be accomplished at a cost of 7 using a computer. The comparison is even more favorable to the latter approach when multiple case studies are required. For large applications Neufville et al. (N3) estimated that the time required is about 1/100 of that required by manual calculations. 

In 1993, it was estimated that low-profile air strippers cost between 4000 and 40,000 and have treatment capacities ranging from 1 to 360 gal/min (gpm). Packed-tower air strippers have capacities ranging from 5 to 10,000 gpm and cost from 2000 to 200,000 (D15445K, p. 28). Cost information from Case Studies 1 and 3 is summarized below ... 

Case Study 1. Pump-and-Treat System with a Packed-Tower Air Stripper, McClellan Air Force Base Superfund Site, California, Operable Units B/C, 1987. The costs associated with pump-and-treat system used at the site were estimated in 1994. Costs were approximately 80 per pound of removed volatile organic compounds (VOCs) based on operating costs alone and approximately 150 per pound when capital costs were included (D141286, p. 135). It should be noted that the operation and maintenance costs for the an air stripper could not be separated from the total cost of the project. Capital cost and operating cost information for this project are summarized in Case Study 1. 

Based on data from a demonstration at the Savannah River site, the total cost for SPSH was estimated to be 86/yd. In contrast, the use of traditional SVE at the site would have cost an estimated 576/yd. Total capital cost for the Savannah River site demonstration was estimated to be 1,277,300. Total operation and maintenance cost was estimated to be 16,900 per month. Table 1 gives a cost comparison between SPSH and SVE (D105759, pp. 15,16 D222606, p. 232). Detailed breakouts of capital cost as well as operation and maintenance cost can be found in Case Study 2. 

The vendor supplied an unspecified case study that compared the costs of an existing pump-and-treat system with a pump-and-treat system that had been retrofitted to accommodate an FE ACTIVE. The projected life-cycle cost (adjusted for an inflation rate of 4% and a rate of interest of 5%) of the existing pump-and-treat system was calculated to be 3,930,000 (1996 dollars). The life-cycle cost (adjusted for a 4% inflation rate and a 5% interest rate) of the FE ACTIVE retrofit system was calculated at 945,000 (1996 dollars). Both estimates included capital costs, operation and maintenance expenses, and the cost of groundwater monitoring. Similarly, had the FE ACTIVE system been installed initially, its life-cycle cost would be 1,630,000 (1996 doUars). 

The approximate total cost for remediation of a site with 95,000 yd (73,000 m ) of contaminated soil over a 2-year period was 4,401,120, or 46/yd ( 60/m ). Costs also were calcnlated for use of the steam-enhanced recovery process (SERP) at a similar site of the same size and contamination profile under what might be considered typical operation conditions. These costs were estimated to be abont 3,375,910, or approximately 36/yd ( 47/m ) (D10949J, p. 37). Detailed cost estimates for SERP may be fonnd in Section 3 of D10949I see Case Study 1 in the reference for more information on the SERP demonstration that served as the basis for these costs. 

PO WW ER system costs are estimates compiled by the vendor and are partly based on data from the Lake Charles SITE demonstration in Louisiana (Case Study 1, see D10060N, pp. 27-28). Estimates are affected by site-specific factors including physical site conditions, geographical site location, treatment goals, leachate characteristics, and the total volume of leachate to be treated. 

Case Study Problem Economic Evaluation The estimated 2001 construction costs of the refinery process units and their utility requirements are listed in Table 8.39. 

Table 10.4 Cost Estimate Summary Case Study...

The Phase 1 design package is the basis for a very good quality semi-detailed preliminary cost estimate that can be prepared quickly using the procedures in Chapter 19. Appendix L illustrates the preparation of the estimate for the case study... 

The Case Study initiated with the initial Plan of Action in Section 5.3 has evolved into a Phase 0 Design Package and now a Preliminary Cost Estimate is required to confirm the viability of the project and, if required, request funds for the preparation of a Detailed Process Design and Engineering Specification (Phase 1) and an appropriation quality estimate. 

Table L.1 Case Study - Preliminary Cost Estimate, Cost Summary...

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