The Basic Economics of Hydrocarbon Vapor Control

The best interest of any company is well served when responsibility for procurement of vapor control equipment is properly fixed. From discovery of need, to final operation of the equipment, many events must occur and much effort must be expended. In many petroleum industry marketing terminals today, decentralization of control has forced terminal managers to become cost center managers as well as distribution facility managers, and this added responsibility is valuable. Who else is in a better position to evaluate the true operating costs of any equipment and to carry out the responsibility of finding the right equipment for the job at hand? Where companies employ central engineering staffs, the necessary support studies should be made available to the terminal manager so that he can understand and review: (1) the capital investment and related depreciation expense; (2) the need for preventive maintenance programs as suggested by bidding equipment suppliers; (3) the need for local contractors to bid on preventive maintenance programs; (4) company maintenance routines and all labor expense involved; and (5) budget preparation for both capital and expense budgets.