July 2009 Vol. 236 No. 7


Custody Transfer: The Value Of Good Measurement And The Search For The Truth

Custody transfer measurement in the oil and gas business has been described many ways. It has been called an accuracy in measurement that both the buyer and seller can agree upon and it has been called the best that can be achieved to meet the contract conditions. I like to call it, “The Search for the Truth.” Ever since petroleum has been bought and sold, better ways to measure and better accuracies have been sought. A big advancement was the pipe prover. Today, the American Petroleum Institute (API) requires an accuracy of 0.02% when compared to a standard such as National Institute of Standards and Technology (NIST) traceable Seraphin cans. If we want to put 0.02%

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