The API Pipeline Benchmarking Survey (PBS) is an industry-sponsored activity to collect and report metrics related to pipeline costs and operations. Aggregate measures are used by the participating companies to benchmark their pipeline operations against the industry and similar companies.

Participants agree that the survey information is confidential and shall be used solely by Participant's company for internal benchmarking purposes and shall not be disseminated outside the Participant's company, that there will not be a general distribution of the information in the company, and that distribution of the information will only be made to those in the company who are responsible for benchmarking and have a need for such information.

Why Benchmark?
Companies use collected industry data to:

• Establish performance measures and objectives based on top performing companies;
• Identify performance gaps and reallocate resources in order to improve efficiency;
• Assess current strategies,
• Evaluate trends and measures that might indicate advantages or disadvantages existing with competitors;
• Identify those factors which influence costs.

API's Approach
API works with company members to create a simple survey form – typically not to exceed 100 inputs – and build upon it using participant feedback. We create baseline models for comparison among peer companies – in order to better locate areas where improvements are needed. We also
look at correlations between factors to identify possible sources of inefficiencies, so companies can narrow the areas where monitoring is valuable, and ideas generated through the process are shared with participating companies in accordance with anti-trust guidelines.

Utilizing one page questionnaires for Product, Crude, Overhead, and Integrity Management, the API survey provides participating companies with a tremendous amount of information from which they can choose their preferred area of focus.

The PBS Process
Currently, the Pipeline Benchmarking Survey is conducted once every other year – reducing the amount of resources companies need to allocate toward data collection purposes each calendar year. Interested companies meet twice each year to discuss the survey process, evaluate current variables and their definitions, and suggest possible new measures for inclusion.

Following the survey modification phase, including finalization of the form, the API distributes the survey to all committed participants. (Please consult the current survey schedule for approximate dates) Following the distribution of the survey itself, the API reviews all incoming data and contacts each company to confirm outlying points or questionable answers. Once all participating companies have submitted their data, a Draft Report is created for the companies’ review. It is at this time that companies can submit final corrections or modifications to their data. Once all the data has been reviewed by the participants and their confirmation is received as to data quality, the API prepares and distributes the Final Report.

The Results
In addition to the base product, the API will offer two optional enhanced products related to the 2007 Pipeline Benchmarking Survey.

Enhanced Products (optional)

1. Additional Regression Analysis A participating company may request that the API build additional models.
   
2. Customized Analysis - A participating company may individually contract with the API to have a customized analysis performed.

The API Advantage
The methods employed by the API in its benchmarking process offer several distinct advantages to companies interested in measuring their operating performance versus the industry and their competitors.

• We have the experience and history behind us in conducting this type of survey. We’ve been conducting the PBS for 6 years. But we’ve been doing other industry surveys and statistical studies for even longer.
• The data we collect in our benchmarking studies is always determined by the participating companies. In that way, the companies receive information they are most interested in.
• The results are also structured to be customizable to the analyst, which provides an additional tool for reaching decisions.
• The survey, its results and all information about the survey are available electronically. The survey, the results – all are posted on the API web site and made accessible to you with a protected username & password.
• As an industry association, we guarantee the confidentiality of the data we collect. Once the final report is created, raw data is destroyed.
• And, as an association, we are able to provide that anti-trust umbrella under which to share information.