Paper: The Causes And Effects Of Error In Crude Oil Measurement

This paper discusses the common causes and effects of measurement error in LACT unit custody transfers. The discussion covers the major components of a LACT unit, and their effects on measurement accuracy. It also pinpoints how the neglect of each of these components causes the loss of millions of dollars to the oil industry through inaccurate measurement. Also discussed is how the failure to strictly observe API procedures, during the testing of the crude oil sample, can result in measurement error. Although these errors may be small percentage wise; when multiplied by monthly or yearly sales, the results can amount to a substantial dollar amount.