Oil and gas pipelines
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Oil and natural gas pipelines include pipelines that transport raw oil and natural gas as well as pipelines that transport petroleum products refined from crude oil, such as gasoline, home heating fuel, and diesel fuel. Pipelines are used collect oil and gas from production sites and transport them cross-country to refineries, collection facilities, and ultimately to consumers. In 2014, there were 160,521 miles of liquid petroleum pipelines (crude oil pipelines) and 1,585,672 miles of natural gas pipelines in the United States according to the U.S. Department of Transportation.[1][2]
This article outlines how pipelines collect and transport crude oil, natural gas, and petroleum products, the location of oil and gas pipelines in the United States, the process of siting new pipelines, issues of pipeline safety, federal legislation and regulation, and the economic and environmental impact of oil and gas pipelines.
Background
Two main types of pipelines are liquid petroleum pipelines (also known as crude oil pipelines) and natural gas pipelines.[3][4][5]
Liquid petroleum pipelines deliver crude oil and other liquid forms of energy. Smaller pipelines known as gathering lines first transport liquid petroleum from production sites to a collection point, such as a processing or gathering facility. These facilities are connected to larger pipelines known as transmission lines. Transmission lines are more extensive and transport liquid petroleum cross-country to refineries or loading facilities. After petroleum is refined into petroleum products such as gasoline, jet fuel, or diesel fuel, another group of pipelines transports the fuel to terminals with storage tanks. Storage tanks are then loaded onto tanker trucks for delivery to homes and gas stations. In addition, pipelines carrying petroleum products can deliver products directly to certain industries, such as airports and electric power plants.[6][4][5]
Like liquid petroleum gathering lines, natural gas gathering lines collect natural gas from production sites and transport it to larger, cross-country transmission lines for delivery to refineries. Natural gas distribution lines then deliver natural gas to homes and businesses.[6][4][5]
Pipeline locations
In 2014, there were 160,521 miles of liquid petroleum pipelines (crude oil pipelines) and 1,585,672 miles of natural gas pipelines in the United States according to the U.S. Department of Transportation.[1]
The map below shows crude oil pipelines in the United States according to the U.S. Energy Information Administration (as of May 2017).[7]
The map below shows petroleum product pipelines in the United States (as of May 2017). These pipelines deliver refined petroleum products, such as gasoline, home heating oil, or diesel fuel.[7]
The map below shows natural gas pipelines in the United States (as of May 2017).[7]
Pipeline mileage
The tables below show the mileage of oil and natural gas pipelines by pipeline type (from 2007 to 2014).
| Oil pipeline mileage by pipeline type | ||||||||
|---|---|---|---|---|---|---|---|---|
| Type | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 |
| Oil pipelines (total) | 147,235 | 146,822 | 148,622 | 147,524 | 149,571 | 151,912 | 152,016 | 160,521 |
| Crude oil lines | 46,658 | 50,214 | 49,585 | 50,198 | 50,004 | 51,349 | 49,974 | 56,375 |
| Petroleum product lines | 85,666 | 84,914 | 87,788 | 86,889 | 86,699 | 86,486 | 87,452 | 89,663 |
| Source: U.S. Department of Transportation, "Table 1-10: U.S. Oil and Gas Pipeline Mileage" | ||||||||
| Natural gas pipeline mileage by pipeline type | ||||||||
|---|---|---|---|---|---|---|---|---|
| Type | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 |
| Gas pipeline (total) | 1,524,438 | 1,533,876 | 1,545,475 | 1,554,270 | 1,563,512 | 1,567,310 | 1,575,536 | 1,585,672 |
| Distribution pipelines | 1,203,330 | 1,210,032 | 1,220,539 | 1,229,844 | 1,239,178 | 1,247,437 | 1,255,340 | 1,266,359 |
| Transmission pipelines | 301,066 | 303,181 | 304,560 | 304,805 | 305,057 | 303,341 | 302,827 | 301,804 |
| Gathering lines | 20,042 | 20,663 | 20,376 | 19,621 | 19,277 | 16,532 | 17,369 | 17,509 |
| Source: U.S. Department of Transportation, "Table 1-10: U.S. Oil and Gas Pipeline Mileage" | ||||||||
Pipeline siting
Pipelines must receive approval for their location and route (and the route and location of related facilities) from authorized federal or state agencies. Interstate natural gas transmission lines must be approved by the Federal Energy Regulatory Commission (FERC). Interstate crude oil transmission lines receive approval according to a state-by-state process.
Natural gas pipeline siting
Under the Natural Gas Act of 1938, the Federal Energy Regulatory Commission (FERC) has regulatory authority of various aspects of interstate natural gas pipeline activities. These activities include the approval, permitting, and siting of new natural gas pipelines and the transmission rates of interstate natural gas shipments. Pipeline companies must first apply for a certificate of public convenience and necessity from FERC. The agency is responsible for determining whether the proposed pipeline meets the public need in light of the potential impacts to local landowners or the environment. In addition, FERC determines the conditions of the pipeline's construction and its route. After a pipeline is approved, FERC then determines the pipeline's transmission rates.[8][9]
FERC's approval of a natural gas pipeline preempts any state and/or local laws that conflict with FERC's jurisdiction or would otherwise prevent a pipeline's construction (such as local zoning laws). However, FERC can require a pipeline company to comply with state or local laws as part of the company's federal permit.[8]
Additionally, all completed gas pipelines must comply with federal environmental requirements under the Clean Air Act, Clean Water Act, and Endangered Species Act, among others.[8]
Under the 1938 act, companies with a certificate of public convenience and necessity hold the federal power of eminent domain. The company can exercise eminent domain power in federal or state court to acquire a private right-of-way, land, or other properties required to build, operate, or maintain an interstate natural gas pipeline or a related facility. Companies that cannot obtain properties through contract or negotiation with property owners can exercise their eminent domain power in court.[8]
Crude oil pipeline siting
As of May 2017, there was no federal law establishing a federal approval process for siting interstate crude oil pipelines; however, there were federal laws that establish pipeline safety requirements, such as the Pipeline Inspection, Protection, Enforcement, and Safety Act (2006), the Natural Gas Pipeline Safety Act (1968), and the Hazardous Liquid Pipeline Act (1979), among others.[8]
Crude oil pipeline siting requirements differ depending on state and local laws. States can require pipeline companies to receive approval for a pipeline route (or authorization for eminent domain to obtain certain property) from the state and/or a local legislature, the state governor, or a state utility commission. Additionally, states may issue additional requirements for companies seeking pipeline approval. These requirements can include consultations with state officials over different activities associated with a pipeline's construction, such as water withdrawals, potential impacts to state-protected endangered species, or the crossing of state-managed lands or water.[8]
International pipelines
Under Executive Order 10485 (1953), the Federal Energy Regulatory Commission (FERC) reviews and approves requests for a permit to construct and operate a natural gas pipeline across international borders.[8]
Under Executive Order 13337 (2004), the U.S. Secretary of State is responsible for reviewing applications for permits to construct and operate a crude oil pipeline across international borders. The State Department is required to consult with other federal agencies before it approves a crude oil pipeline's construction.[8]
Pipeline safety
Pipelines can accidentally release crude oil or natural gas due to third party damage (damage done by people or contractors not associated with the pipeline operator), corrosion, mechanical failure, operator error, control system failure, and natural forces such as earthquakes and floods. In addition, pipeline incidents can produce injuries or fatalities. Under federal law, pipeline operators must report significant incidents, which include incidents that involve $50,000 or more in total costs, the release of five or more barrels of highly volatile liquids, the release of 50 or more barrels of other liquids, and/or the release of liquids that result in accidental fires or explosions. According to the Pipeline Hazardous Materials and Safety Administration, there was an average of 286 incidents, 13 fatalities, and 64 injuries annually from 2007 to 2016 in all U.S. pipeline systems.[8][10][11]
Industry practices
According to the American Petroleum Institute, a national trade association that represents the oil and natural gas industry, oil and gas pipeline operators follow several industry-recommended practices to guide pipeline safety activities.[12]
- Operators can use in-line inspection devices, which travel within pipelines and collect data on potential imperfections in pipe walls.
- Pipeline operators can use the Pipeline Performance Tracking System, which is maintained by the American Petroleum Institute. Operators can submit data on potential and actual pipeline incidents. According to the American Petroleum Institute, the goal of the system is to track long-term pipeline safety trends.
- Operators can apply integrity assessment technology and modeling to identify potential pipeline cracking, institute repairs, and collect and use data to establish preventative measures for pipeline cracking.
Federal regulation
Under the Natural Gas Pipeline Safety Act (1968) (P.L. 90-481) and the Hazardous Liquid Pipeline Act (1979), the Pipeline Hazardous Materials and Safety Administration (PHMSA) within the U.S. Department of Transportation regulates interstate pipeline safety, including the design, construction, operation and maintenance of pipelines and spill response planning. The PHMSA is also permitted to bring administrative actions and civil penalties against operators with safety violations.[8]
The PHMSA is responsible for the following regulatory actions:[13]
- Inspection of pipeline management systems and procedures
- Physical inspection of pipeline facilities and construction projects
- Investigation of pipeline safety incidents
Legislation
- Under the Pipeline Safety Improvement Act (2002), natural gas operators must conduct risk analysis and implement pipeline integrity programs for pipelines in high-consequence areas (areas with large populations, commercially navigable waterways, and/or areas more sensitive to environmental damage).[8]
- Under the Pipeline Inspection, Protection, Enforcement and Safety Act (2006), states received federal grants for enhancing pipeline damaging prevention programs. In addition, the act established 811, a national one-call telephone number for individuals who plan to dig or excavate in a specific area using shoves and/or mechanized equipment. Individuals use the number to notify that they intend to dig in an area within 48 to 72 hours.[8]
- The Pipeline Safety, Regulatory Certainty, and Job Creation Act (2011) increased the number of federal pipeline safety inspectors, required automatic shutoff valves for transmission pipelines, and increased civil penalties for oil and gas pipeline safety violations.[8]
Economic impact
IHS study (2016)
In a February 2016 study published by IHS Economics, an economic consulting firm that analyzes industry and business data, researchers looked at the economic impact of new crude oil transmission pipelines that were commissioned and began operating in 2015. The study's authors argued that these pipelines would produce the following estimated economic effects:[14]
- Pipeline operators would spend approximately $11.57 billion to construct 6,805 miles of new crude oil transmission pipelines and spend approximately $1.1 billion on pipeline operation and maintenance during their first year of operation.
- Pipeline construction spending would generate 164,111 jobs in 2015. *New pipeline construction spending would contribute approximately $15.5 billion to total US gross domestic product (GDP).
- Pipeline construction would produce a $10.2 billion increase in labor income in 2015.
The fully study can be accessed here.
BLS employment data (2016)
According to the U.S. Bureau of Labor Statistics (BLS), there were approximately 18,840 individuals employed in the crude oil, natural gas, and petroleum product transportation sector in 2016. These individuals were employed in the following areas:[15]
- 6,060 individuals were employed as petroleum pump system operators, refinery operators, and gaugers.
- 5,490 individuals were employed as gas plant operators.
- 3,820 individuals were employed as industrial machinery mechanics.
- 1,810 individuals were employed as gas compressor and gas pumping stations operators.
- 1,660 individuals were employed as control and valve installers and repairers.
According to the BLS, the average hourly earning for all employees in the pipeline transportation sector was $42.47 as of March 2017, and the average weekly hours for these employees was 44 hours. The average hourly earning for pipeline transportation production and nonsupervisory employees was $38.94, and the average weekly hours for these employees was 43.3 hours as of March 2017.[15]
Environmental impact
Spill concerns
Modes of oil and natural gas transportation, including pipelines and tanker trucks, include some risk of oil or gas spills. Causes of potential environmental impacts from oil and gas pipelines can include the breaking of pipelines through corrosion, third-party damage to pipelines caused by excavators, operator error, mechanical failure, and natural disasters.[8]
The graph below shows the volume of crude oil spilled by each transportation type. From 2002 to 2007, tanker trucks spilled the largest amount of oil and petroleum products during transit—approximately 230 barrels of oil spilled for every 8.45 billion barrels of oil transported by one mile (denoted as billion-ton-miles in the chart below). For every 136.43 million barrels of oil transported by one mile through pipelines, there were about 100 barrels of oil spilled on average. For context, 6.12 trillion barrels of oil and petroleum products were moved using pipelines, tankers, trucks, and railroads in 2007. Additionally, pipelines accounted for 66.8 percent of all crude oil and petroleum products transported in the United States in 2007.[16][17][18][19]
Natural gas gathering lines
Natural gas gathering lines collect gas from well sites for transportation to processing facilities. According to a 2014 study by the Interstate Natural Gas Association of America, a trade association that represents interstate natural gas transmission pipeline companies, approximately 14,000 miles of new natural gas gathering lines would be constructed on average each year from 2014 to 2035. In some areas where oil and natural gas is extracted from shale formations, gathering lines are greater than 20 inches and perform with higher pressure. According to the U.S. Government Accountability Office in 2014, larger gathering lines operating at higher pressures "could increase safety risk, since an incident occurring on one of these larger, high-pressure unregulated gathering pipelines could affect a greater area."[20][21]
Recent news
The link below is to the most recent stories in a Google news search for the terms oil gas pipeline United States. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
Energy policy in the states
Click on a state below to read more about that state's energy policy.
See also
Footnotes
- ↑ 1.0 1.1 Bureau of Transportation Statistics, "Table 1-10: U.S. Oil and Gas Pipeline Mileage," accessed May 22, 2017
- ↑ Congressional Research Service, "U.S. Rail Transportation of Crude Oil: Background and Issues for Congress," December 4, 2014
- ↑ Pipeline 101, "How Do Pipelines Work?" accessed May 23, 2017
- ↑ 4.0 4.1 4.2 Pipeline 101, "Natural Gas Pipelines," accessed May 11, 2017
- ↑ 5.0 5.1 5.2 About Pipelines, "How do pipelines work?" accessed May 11, 2017
- ↑ 6.0 6.1 Cite error: Invalid
<ref>tag; no text was provided for refs namedHWPW - ↑ 7.0 7.1 7.2 U.S. Energy Information Administration, "U.S. Energy Mapping System," accessed May 11, 2017
- ↑ 8.00 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 8.09 8.10 8.11 8.12 8.13 Congressional Research Service, "Pipeline Transportation of Natural Gas and Crude Oil: Federal and State Regulatory Authority," March 28, 2016
- ↑ Interstate Natural Gas Association of America, "Not All Pipelines Are The Same: Regulatory Differences Impacting Oil Versus Natural Pipeline Development," April 12, 2012
- ↑ Pipeline Hazardous Materials and Safety Administration, "Serious Incidents - PHMSA," accessed April 24, 2017
- ↑ Pipeline Hazardous Materials and Safety Administration, "Significant Incidents - PHMSA," accessed April 24, 2017
- ↑ American Petroleum Institute, "API-AOPL Annual Liquids Pipeline Safety Excellence Performance Report & Strategic Plan - 2016," accessed May 11, 2017
- ↑ Pipeline Hazardous Materials and Safety Administration, "FAQs," accessed April 11, 2017
- ↑ IHS Economics, "The Economic Impact of Crude Oil Pipeline Construction and Operation," February 2016
- ↑ 15.0 15.1 U.S. Bureau of Labor Statistics, "Pipeline Transportation: NAICS 486," accessed May 11, 2017
- ↑ Congressional Research Service, "U.S. Rail Transportation of Crude Oil: Background and Issues for Congress," December 4, 2014
- ↑ CME Group, "Conversion Calculator," accessed March 2, 2016
- ↑ United States Department of Transportation, "Table 1-61: Crude Oil and Petroleum Products Transported in the United States by Mode," accessed March 2, 2016
- ↑ Note: Ballotpedia converted the Congressional Research Service's figures from billion-ton-miles to billion-barrel-miles in an attempt to facilitate comparisons.
- ↑ Congressional Research Service, "DOT’s Federal Pipeline Safety Program: Background and Key Issues for Congress," May 20, 2016
- ↑ U.S. Government Accountability Office, "Department of Transportation Is Taking Actions to Address Rail Safety, but Additional Actions Are Needed to Improve Pipeline Safety," August 2014
