Shortage of Oil and Natural Gas Pipelines | 6/9/2018 | Institute for Energy Research
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President Trump’s pursuit of energy dominance is being challenged not just from the production of energy, but from the transport of it as well. With the greater production of oil and natural gas comes the need for more pipelines to economically ship the fuel to homes, businesses, refineries and export locations. The shortage of natural gas pipelines is well understood during the winter months in New England when electricity and natural gas prices have skyrocketed due to weather conditions increasing demand and hindering the availability of supplies. But, there are pipeline shortage problems in other areas as well. In Texas, there is a shortage of pipelines to move oil from production areas to markets. And, in Canada, oil producers suffer discounted prices due to a shortage of pipelines to move oil sands to markets.

Natural gas prices in some parts of the Northeast (New England, New York, and New Jersey) increased by 60 to 70 times their normal rates because of the lack of pipeline capacity in the region. Natural gas is used in the Northeast for generating electricity and heat, providing over half of the power in the region. Due to a lack of pipeline capacity, heating oil was forced to make up about 35 percent of New England’s electricity this past winter, raising electricity prices. Annual residential electricity rates in the Northeast are over 50 percent higher than the national average–about 19 or 20 cents per kilowatt hour, compared with the national average of 12 to 13 cents.

Oil - Producers - Record - Volumes - Basin

Oil producers are producing record volumes from the Permian basin in Texas–the source of most of the nation’s shale oil production—while the region’s energy infrastructure is being sorely strained. Pipelines from west Texas to the Gulf Coast are full, and new lines will not be completed until next year. While rail has...
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I find it extremely funny when people keep voting and expecting the government to change!
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