• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 6 hours Is California becoming a National Security Risk to the U.S.?
  • 24 hours Pence says South China Sea Doesn't Belong To Any One Nation
  • 1 day Anyone holding Nvidia stock?
  • 13 hours Why does US never need to have an oil production cut?
  • 2 days UK Power and loss of power stations
  • 1 day Germany Discusses Lifting Ban on Deporting Syrians
  • 6 hours US continues imports of Russian gas which it insists Europe should stop buying
  • 2 days China Claims To Have Successfully Developed a Quantum Radar That Can Detect 'Invisible' Fighter Jets
  • 28 mins Trump administration slaps sanctions on Saudis over Khashoggi's death
  • 2 days At U.N. climate talks, US Administration Plans Sideshow On Coal
  • 2 days OPEC Builds Case For Oil Supply Cut
  • 2 days I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 2 days Good Sign for US Farmers: Soybean Prices Signals US-China Trade Deal Progress
Is OPEC’s Oil Outlook Too Bullish?

Is OPEC’s Oil Outlook Too Bullish?

Many market watchers agree that…

The World's Most Important Oil Region

The World's Most Important Oil Region

The Middle East remains crucial…

U.S. And Russia To Dominate World’s Oil & Gas Pipeline Spending

Oil rig

The U.S. shale boom and the massive Russian expansion of natural gas pipelines will make the United States and Russia the dominant spenders on oil, petroleum products, and natural gas pipelines through 2022, data and analytics company GlobalData says in a new report.

The other big spenders between 2018 and 2022 will be Canada, China, and Nigeria, according to the analytics firm.

The U.S. will be leading the capital expenditure (capex) on oil and gas pipelines, with an estimated US$88.4 billion on new pipelines by 2022, while Russia is seen spending US$78.8 billion.

In the United States, spending on natural gas pipelines will account for around 40 percent of the total planned pipelines by 2022, with crude oil and natural gas liquids (NGL) expected to have 31-percent and 24-percent shares of expenditure, respectively.

In Russia, the spending is mostly focused on natural gas pipelines, which will account for 88 percent of the planned pipelines expected to come online by 2022. Petroleum products pipelines and oil pipelines are the next major planned pipelines with capex share of 7 percent and 4 percent, respectively.

“Booming unconventional oil and gas production is in turn driving the growth of the pipeline network in the US. More and more operators are focusing on connecting growing unconventional production with the Gulf coast for export of oil and gas,” said Soorya Tejomoortula, Oil and Gas Analyst at GlobalData.

Related: Oil Jumps As Trump Asks Allies To Cut Off Iranian Oil

“Russia is further expanding its massive natural gas pipelines network for exports. The country is building pipelines to transport natural gas from its production centres to demand centres such as China, Japan, India and Europe,” Tejomoortula noted.

While U.S. spending on pipelines will surge through 2022, currently, the fastest-growing oil producing region in the United States, the Permian, is nearing the limits of its pipeline takeaway capacity and some producers may be forced to shut in wells within months, according to the chairman of one of the biggest U.S. shale producers, Pioneer Natural Resources.

“Some companies will have to shut in production, some companies will move rigs away, and some companies will be able to continue growing because they have firm transportation,” Sheffield told Bloomberg said last week.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Frank on June 29 2018 said:
    We're all but done with oil....and we're building pipelines?
  • anthony hartnell on June 28 2018 said:
    Meanwhile, Canada with the worlds 3rd largest reserves gets back dorred again......wake up Canada and get rid of Trudeau.........

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
-->