Energy & Mining International - Spring 2013 - (Page 12)

+ P I P E L I N E I N F R A S T R U C T U R E | DEPARTMENT AND FEATURES Spring 2013 Pipelines for New Energy Regulatory and commercial challenges are standing in the way of building pipeline infrastructure for new sources of oil and gas. BY MARK LEWIS AND GEORGE FATULA N ew methods of natural gas and oil production have unlocked new supplies from shale formations around the United States over the past two decades, and these new supply sources have brought about rapid changes in the transportation infrastructure needed to bring these supplies to market. Pipeline developers – whether moving oil, natural gas or natural gas liquids (NGL) – have sought to keep up with the increasing volume and changing production locations by building new infrastructure and repurposing existing pipelines. The origin points for new and repurposed pipelines are often 12 in areas historically lacking large-scale pipeline infrastructure. In some cases, new production locations were previously destinations or through-points for oil, gas and NGL pipelines before the shale production boom. For example, while Appalachia was an original oil and gas production area when the industry first developed, it has for many years primarily been viewed as a “market area.” Advances in production from the Marcellus Shale, however, have created a massive gas and NGL supply source in the midst of the market. To enable new oil and gas supplies to reach downstream refineries, processing facilities and markets, there is now a need for new pipeline development, changes to the direction of flow on many existing pipelines, and the repurposing of other existing gas infrastructure for NGLs. NEW INFRASTRUCTURE REQUIRED According to the U.S. Energy Information Administration (EIA), over the past several years, Gulf of Mexico gas production has fallen, while onshore gas production has grown. The EIA also says on the crude oil side, Gulf of Mexico production fell from a relative high in the middle of the last decade and has since remained flat. On the other hand, crude oil production in North Dakota (mainly

Table of Contents for the Digital Edition of Energy & Mining International - Spring 2013

Energy & Mining International - Spring 2013
Washington, D.C.
Independent Exploration
Drilling Down
Pipeline Infrastructure
Marine Oil Terminals
Eagle Ford Shale
Monterey Shale
Marcellus Shale
Bakken Shale
Monitoring Fracking
Compliance Abroad
Public/Private Sales
Qv21 Technologies
PVR Partners LP
Lake Truck Lines
Aurcana/Rio Grande Mining Co. – Shafter Mine
Ruder Ware
Legacy Steel Buildings
Mineral Park Mine/Mercator Minerals Ltd.
Hearn Trucking LLC
John Fithian Contracting Co.
Chemex LLC
Global Diving & Salvage Inc.
Gold Spur Trucking
TAM International Inc.
Industrial Minerals Focus
The Mouat Company
Hi-Crush Partners
Mill Creek Sand and Gravel/Peaskie Minerals
Del Sol Industrial Services Inc.
Market & Johnson
Fortress Proppants
Canada Focus
Strategic Oil & Gas
Copper Fox Metals
Standard Machine
Gold Reach Resources
Treasury Metals Inc.
Canadian Zinc
Havlik Gear
The Final Shot

Energy & Mining International - Spring 2013