Different standards advocate different velocities. Also different operating companies advocate different guidelines for velocity and pressure drop based on their operating experience.
So there is no single guideline which is universally applicable. Depends on operating experience and a combination of other factors such as capital cost, operating cost, safety, reliability and profitability.
If you think 7 m/s is high then you must see the NORSOK standards for offshore O&G industry which advocate even higher velocities and limit velocity based only on MOC of the pipe. They have arrived at velocities based on their owns studies of cost, safety, reliability and profitability. Many companies in offshore O&G exploration follow NORSOK standards and consider them to be at par with other standards such as API.To me, the reason for even higher velocities is obvious. Space on offshore platforms is available at a premium. If you have conservatively low velocities, you will require bigger pipes for a given flow which will tend to increase the platform size and thus greatly increase the cost of the platform and ultimately the cost of oil and gas production.
Velocities in pipes has been intensively discussed on "Cheresources" and there is a free spreadsheet on velocity guidelines of various standards posted by our member Ajay Satpute in the download section.
Regards,
Ankur.