In a mobile material handling system powered by hydraulic drives, abnormally high line pressures were observed during operation, raising concerns about energy losses and inefficiencies in the hydraulic circuit design. To quantify the actual power consumed by hydraulic motors vs. the power lost due to line friction, a comprehensive measurement and simulation study was conducted. Pressure sensors (minimes test points) were installed at the inlet and outlet of each hydraulic motor to collect real-time pressure data. Losses were categorized into two main components: internal motor losses and line friction losses. An Excel-based tool was developed to calculate power losses [kW], and a MATLSIMULINK model was constructed to simulate pressure drops across the system, including components such as elbows, reducers, and fittings. Results indicated that frictional losses in the hydraulic lines accounted for nearly 50% of the total power drawn by the motors. Although the original line design adhered to standard velocity-based guidelines, Reynolds number analysis revealed a transitional to turbulent flow regime, contributing significantly to energy loss. Simulation of different internal diameters demonstrated that increasing the line size from 1/2"-5/8" in a critical segment reduced the associated power loss from 4-0.8 kW - a reduction of over 80%. Overall, approximately 7 kW of hydraulic power was recovered from a 55 kW engine, enabling the redirection of surplus energy to auxiliary hydraulic functions and improving overall fuel efficiency.