Definition
Basic
Pipelines are used for the transportation of a wide array of raw materials, including agricultural, chemical and pharmaceutical products and plastics. However, pipelines find their most important and widespread employment for the transportation of two specific energy commodities - oil and natural gas - and a number of petroleum derivatives and products like gasoline, diesel, jet fuel, kerosene, propane, heating oil etc.
History
Origin
The history of pipelines can be traced back to China 5,000 B.C. where the pipelines originally were used to drain water. However, the first modern oil pipeline was constructed in the U.S in 1865 with the aim to bring high transportation costs down. Since the 1950’s there have been substantial developments in pipeline infrastructure and this trend continues.
Popular Use
The nation's oil pipelines transport crude oil from oilfields to refineries where the oil is turned into dozens of useful products such as gasoline, home heating oil, jet fuel, diesel, lubricants and the raw materials for fertilizer, chemicals and pharmaceuticals. They then transport refined products to depots that distribute them to the companies and consumers that daily rely on a steady and cheaply transported supply of these products.
Money Involved
Cost of Pipelines
This study aims to provide a reference for the pipeline construction cost, by analysing individual pipeline cost components with historical pipeline cost data.
As for the major recent pipeline projects, the prices often remain undisclosed by investors. However, the construction cost of at least one recently built pipeline is known. The 1224 km long Nord Stream pipeline, whose first leg was just completed in 2011, has a price tag of 7,4 billion EUR according to Nord Stream AG - the consortium behind the pipeline. Another example is the proposed Nabucco pipeline, which – according to some industry estimates – could cost anywhere from 8 to as much as 14 billion EUR.
Use
Primary
Liquid pipelines are used to bring crude oil to refineries as well as petroleum products to communities. This includes: gasoline, diesel, jet fuel, home heating oil, kerosene, propane and bio fuels. Pipelines are also used to bring carbon dioxide to oil and natural gas fields. Other industries too use pipelines for transportation of raw materials, such as food, drugs and pharmaceuticals, plastics, chemicals, and road construction. Practically, all gasoline is transported by pipelines, trucks are only used for the last part.
Production
Design and Construction
The planning of a pipeline begins years before the actual construction. Firstly, the marked need is determined, then the pipeline is designed, next is specification of pipe and components, route selection, environmental assessments, public consultation, land acquisition and permitting. In the next phase of the construction of the pipeline, some highly trained engineers will design a system that meets the need of the producers.
Challenges
Competitiveness
The world demand of oil and gas is growing at an ever increasing rate, and as a result, there is a demand to explore new areas for more petroleum production. The arctic region is one of the remaining unexplored areas where such exploration still can be done. According to the US Geological Survey estimates, the arctic region, mostly offshore, holds as much as 25% of the world’s untapped reserve of hydrocarbons where much of the reserve is lying under seasonal or year-round sea ice. The exploitation of these remaining reserves, however, will depend upon meeting the technical challenges of design, construction, and operation of offshore installations
Environmental Impact
Another challenge for pipelines is the opposition on the part of the inhabitants of the settlements they cross or among ecologists who claim that pipelines endanger natural/wildlife habitats and aquifers. This is the case of a planned, 2,600 kilometer long, oil pipeline from Canada to refineries on the US gulf coast. This pipeline would cross several U.S. states, including Nebraska, where opposition is growing over concerns that it poses a risk to one of the country's largest fresh water sources.
Another example is the Nord Stream gas pipeline which faced tense opposition from Swedish environmentalists who pointed to potential risks of the Baltic seabed that is littered with ammunition, dangerous chemical weapons and bombs dumped here during World War II.
Key Countries
Total Length of Pipelines by Country
(in kilometres, 2010)
1. United States - 793 285
2. Russia - 252 527
3. China - 75 742
4. Ukraine - 45 218
5. Germany - 33 250
Prospects
Outlook
According to latest expert surveys, a much higher number of pipelines are currently in the engineering and design phase than under actual construction. Of the over 90 000 miles (145 000 km) that are under construction or planned worldwide, only slightly more than 24 000 miles (38 000 km) of pipelines are under construction. The remaining more than 66 000 miles (106 000 km) account for planned projects.
Miscellaneous
How Are Routes for New Pipelines Determined?
Potential routes are initially suggested by demand patterns, including the predicted required flow of crude oil from a producing field to a refinery complex, and the expected flow of refined products from a refinery complex to population centers or markets. Pipeline route alternatives are then determined on the basis of studies of the cost of construction, projected growth in population centers, demand for transportation service over a period of time, and rates that are competitive and provide a reasonable return on investment.
Transition to Globalisation
Russia to Launch Sub-Baltic Gas Pipeline to Europe on Nov. 8
The Nord Stream gas pipeline project from Russia to Europe will be launched on Nov. 8, Russia's energy monopoly Gazprom said on Oct. 3. Gazprom CEO Alexei Miller told Russian Prime Minister Vladimir Putin in a meeting that the construction of the Nord Stream project's first line had been completed and the company is now preparing the starting-up and adjustment work. "Today I can name the exact date when the pipeline will start operating. It's Nov. 8, 2011," Miller told Putin. Miller added the second line of the project is now being built and the company has starting ecological monitoring of the construction.
Globalization > Economy > Energy
Transition to Tools
U.S. Pipelines at a Crossroads
The U.S. has enough oil and natural gas pipelines to circle the Earth 100 times, yet many Americans rarely see or even think about them. That's partly because most pipelines are buried underground, and partly because of their "strong safety record," according to the federal Pipeline and Hazardous Materials Safety Administration, which regulates the industry.
Tools > National > USA > Dom. Policies > Economy > Energy
Transition to Actors
China Pipelines Threaten Myanmar Economic Security-NGO
Controversial oil and gas pipelines spanning Myanmar will deprive its people of billions of dollars worth of their own resources and risk sparking armed conflict that threatens energy security for neighboring China, activists said on Tuesday. Chinese-led construction of a combined 3,900 km (2,420 miles) of pipelines has displaced thousands of people and damaged livelihoods of farmers and fishermen, prioritising China’s growing energy needs before those of the Burmese people, the Thailand-based Shwe Gas Movement said.
Actors > Sector > Civil Society > NGOs > Environment
