Speedbumps: Infrastructure Shortcomings Could Hinder Rising Oil & Gas Production

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Researched by Industrial Info Resources (Sugar Land, Texas)--As U.S. oil and natural gas production continues increasing and shows no signs of abating in the near future, several recent examples demonstrate how existing infrastructure is being pushed to its limits--primarily in the pipelines and terminals sectors.

At the end of March, Industrial Info's North American Project Spending Index showed planned 2014 project starts of $8.03 billion in the Terminals Industry and $27.25 billion in the Pipelines Industry, an increase of 10.8% and 42.9%, respectively, from the corresponding period of 2013, demonstrating the increasing need for new capital projects in these sectors.

Some of the most discussed examples of the shortcomings of infrastructure include the high amount of natural gas flaring in North Dakota, which flared approximately 36% of 1.06 billion cubic feet per day of natural gas production in February, and tightening crude oil storage capacity in the Gulf Coast region as the bottleneck at the Cushing, Oklahoma, oil hub is eased.

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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and ten international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.