Equipment Appraisal Blog | Understanding Machinery Appraisals

What Kind of Equipment is Covered in a Marine Vessel Appraisal?

Posted by Equipment Appraisal Services on Mon, Jul 27, 2020 @ 08:00 AM

Trade boat at the port of Miami
Barges, boats, resupply, tugs: whatever kind of vessels you run, have you considered the value of a marine vessel appraisal to your overall operation? Though many business and equipment owners have a vague idea of the value of their marine equipment, having a professional appraisal performed is often overlooked until it's time to sell equipment. But what kind of marine equipment is typically covered during this type of appraisal? The answer may surprise you. Here's a quick overview of what machinery is covered in the process.


What Kind of Equipment is Covered in a Marine Vessel Appraisal? 


  • Inland Barges: Though much of the midwest and west was settled because of river traffic, many people don't consider this type of transport anymore, despite its function to keep things moving that would otherwise be prohibitively expensive, such as aggregate, sand, grain, trash, oil, timber, metal ores or other bulky, heavy goods, providing a much-needed, inexpensive option to move these materials to market.
  • Offshore Barges: Rivers aren't the only places that you'll see barges moving materials, though offshore barges tend to be larger and with more displacement than their smaller riverboat counterparts. Offshore barges are able to move a wide range of materials between points on the shoreline, without going further afield in many cases due to rougher weather and waterways that may be found further from the coast. At the same time, their smaller engines help provide a more economic option for moving bulk goods.
  • Tugboats and Pushboats: Whether it's pulling barges off of sandbars or similar obstructions, getting large ships safely out to sea before their main engines are engaged, shuttling barges at a loading station or any number of other circumstances, tugboats and pushboats are powerful marine vessels that do a wonderful job of getting much larger ships underway, typically sticking closer to shore for the majority of the time to avoid choppier waters further out to sea.
  • Hopper Barges: When large amounts of material must be moved, unpowered hopper barges are often chained together, creating a waterborne train of material. This provides the option to move large amounts of material without having to have numerous navigators or crews manning the different vessels, as one is simply pulled along behind the other. This allows a single crew to pull thousands of tons of material along a set course without a lot of extra manpower.
  • Oilfield Support Vessels: Offshore oil platforms and drilling rigs need a wide range of materials, changes in crew, new parts for the rig and a number of other items that have to be exchanged at a dizzying rate. Food, medicine, protective equipment, pipeline, couplers, experts, oncoming and offboarding crew members and a wide range of other people and items are carried by oilfield support vessels, providing an inexpensive alternative to spendy helicopter rides for many petroleum companies.

By having a marine vessel appraisal performed on your equipment, you can gain valuable insights into its condition, expected useful lifespan and several other important pieces of information that will help you better manage your equipment assets. However, it's of vital importance that you have the appraisal performed by an accredited equipment appraiser, who will provide you with a properly calculated estimate of your marine assets' value.

Tags: Marine Vessel Valuation

What Happens During an Oil & Gas Pipeline Equipment Valuation?

Posted by Equipment Appraisal Services on Mon, Jul 13, 2020 @ 08:00 AM

close up of industrial pipes of oil industry production
When your daily operation keeps you focused on moving crude oil, natural gas and other petroleum products to your customers, you know that you need to keep your pipeline operating at peak efficiency. A breakdown can cause serious problems for your company. But have you considered the value of that equipment? If you've wondered what happens during an oil & gas pipeline equipment valuation, here's a quick explanation of the process.

What Happens During an Oil & Gas Pipeline Equipment Valuation?

When your oil & gas pipeline equipment is appraised by an accredited equipment appraiser, there are a number of steps taken to ensure the value that is estimated is accurate to your specific equipment's capabilities and condition. These steps help the appraiser compare your equipment to similar machinery in the industry and estimate a fair value based on this information. But what kind of equipment is appraised? In addition to the pipeline itself, the appraiser will also look at components such as control valves, tanks, wellheads, pumps, rods, vertical separators, and, virtually every piece of equipment that is part of your pipeline. If you have computers that are used in monitoring your pipeline status, if you have heavy equipment for maintenance and repairs, if you have emergency response equipment for dealing with these types of events all of these assets can be appraised as part of your overall equipment base, ensuring that you have a complete estimate of value. The appraiser will look at the specific manufacturers and models for each item, as well as its age and condition.

They will also look at the overall demand for that type of equipment, which can impact value, as well as how well the equipment has been maintained and repaired over the years. All of these factors will be taken into account when estimating value. If a piece of equipment has been well-cared for, it will have a materially higher value than one that has been abused or left without proper maintenance. This is all reflected in the appraiser's analysis. If the market for pipeline equipment is especially active, such as when the Bakken oil formation took off a decade or so ago, that demand will be reflected in the value of your equipment. If the industry is going through a slump due to lower oil prices, demand for that equipment may decrease, which will also be reflected in your asset value. Many factors feed into estimating machinery value, which all must be taken into account by an accredited equipment appraiser.

By having an oil & gas pipeline equipment valuation performed on your petroleum product machinery, you'll have a better idea of what it's worth, how long you can expect it to continue to operate economically, and an understanding of it's overall condition and demand in the industry as a whole. This provides you with valuable insights to help you better manage your oil & gas pipeline business effectively and efficiently, making it less risky to make important decisions when opportunities present themselves to your business for solid growth.

Tags: Oil & Gas Pipeline Equipment Appraisal