RUNNING HEAD: PIPLINE TRANSPORTATION 1

Pipeline Transportation:

Benefits and Drawbacks for the Oil and Gas Industry

Writer #33901

Ultius
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Abstract

Pipeline construction as a means of transporting liquids over long distances allows for substantial

reductions in transportation costs and ensures supply of natural gases in remote areas. However,

pipelines pose threats to environmental safety and can be vulnerable to physical interference.

Pipelines also require heavy regulation because of their proximity to the general public. The

three top companies within North America’s oil industry, Kinder Morgan, Inc., Enbridge Inc.

and Williams Companies, Inc., approach the complications of their pipeline projects with an

increasing emphasis on mission statements regarding public health and environmental

sustainability.
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Pipeline Transportation: Benefits and Drawbacks for the Oil and Gas Industry

The transportation of large quantities of liquid by way of pipelines provides a long-

distance solution to a growing need for natural gas across North America. Pipelines contribute to

heavy reductions in transportation costs for companies within the oil and gas industry; they also

ensure supply of natural gases to remote areas lacking in accessible roads (Anthony, 2016).

However, gradual corrosion of pipelines can lead to illegal pilferage and wastage of liquids due

to leaks, along with threats to the general public and public assets which require heavy regulation

(Smith, 2010). The current top three companies within the North American industry are Kinder

Morgan, Inc., Enbridge, Inc., and Williams Companies, Inc. (Cafariello, 2015).

Kinder Morgan, Inc. (www.kindermorgan.com) owns interest in approximately 85,000

miles of pipelines and move about 40% of the natural gas consumed in America. They invest

significant monetary quantities into “integrity management and maintenance programs”, and

report safety performances on their website for public access (“Corporate Profile”, 2015).

Enbridge, Inc. (www.enbridge.com) presents themselves as a corporation committed to

renewable power generation. They operate the world’s longest crude oil and liquid transportation

system and transport 28% of the crude oil produced in North America (“Our Company”, 2018).

Williams Companies, Inc. (co.williams.com) focuses on “connecting North America’s

significant hydrocarbon resource plays to growing markets for natural gas” while remaining

“fully committed” to the protection of the environment (“Our Company”, 2018).

All three companies provide mission statements emphasizing dedication to environmental

safety and public health. The overarching focus, as presented by the corporate websites, is on

spreading natural gas access globally while mitigating the previously outlined risks of the growth

of pipeline transportation within the oil and gas industry.

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References

Anthony, D. (2016). The Pros and Cons of Oil Transportation. Integrity Factoring. Retrieved

from https://oilfieldfactoring.com/oil-gas/pros-cons-oil-transportation/.

Cafariello, J. (2015). Comparing North America’s New 3 Largest Oil and Gas Pipeline

Companies. Seeking Alpha. 1-13.

“Corporate Profile” – Kinder Morgan, Inc. (2015). Retrieved from

https://www.kindermorgan.com/pages/about_us.

“Our Company” – Enbridge, Inc. (2018). Retrieved from

https://www.enbridge.com/about-us/our-company

“Our Company” – Williams Companies, Inc. (2018). Retrieved from

co.williams.com/our-company/

Smith, D. M. (2010). Logistics: Is Key During Pre-Design For Linear Pipeline. Underground

Construction, 65(11), 22-25.