I have worked on a problem like this before (flow of hot oil through the annular space in jacketed pipe). I have made some efforts to derive some practical salient equations that will address roughness, friction factors, hydraulic diameters, effective diameters, etc. Through this endeavour, I have been able to produce equations that suggest that the "Petroleum Engineering" method to determine effective diameter is very similar to the approach that I have taken; in a sense, I have almost derived the expression as given by zdas04. The only modification I would make is to state the following:
* Darcy - Weisbach, inner pipe (after some algebra):
h=[(8fLQ^2)/(g*(pi)^2*d^5)]
* Darcy - Weisbach, outer pipe, hydraulic diameter:
h=[(fL/(do-Di))*(u^2)/(2*g)]
u=[(4Q)/(pi*(do^2-Di^2))]
hence h=[(8fLQ^2)/(g*(pi)^2*{(do+Di)^2*(do-Di)^3})]
I hope I haven't messed up on the brackets and parentheses, but I think anyone reading this can easily figure out what I meant in the event that I have.
In the above, the theory that I follow uses the uncorrected hydraulic diameter dh=(do-Di) in the Darcy - Weisbach equation, and then applies corrections to compute an effective diameter de=dh/y and an effective Reynolds Number Re=R/y, where a curve fitting algorithm for y produces an equation of the form:
y=[-0.763 + 1.593*(Di/do)^0.5 + 1.844*exp(-Di/do)].
When you compare the two expressions for dynamic head loss h as given above, you can see the similarity to the expression for effective diameter used in the "Petroleum Engineering" method. The difference is, I am inclined to not exactly equate the effective diameter as the fifth root of the expression and treat it as the equivalent diameter of a circular pipe. Rather, I am inclined to take the head loss directly from the above.
The reference I have used is a textbook:
FLUID MECHANICS - Frank M. White
Second Edition, 1986, McGraw-Hill Inc.
(see Example 6.14, page 329)
If anyone would like to see my derivations (or check them in the event I am out to lunch), including the iteration scheme applied to the Colebrook equation to determine the friction factor, let me know.
SNORGY