RSS   Newsletter   Contact   Advertise with us
Post Online Media
Post Online Media Magazine

U.S. oil, gas industry to invest $890bn in infrastructure

Share on Twitter Share on LinkedIn
Staff writer ▼ | January 9, 2014
U.S. oilThe U.S. oil and gas industry is investing confidently in infrastructure the near future, according to a report on infrastructure investments. Those investments are projected to $890 billion over the next 12 years.

"It's a time of optimism for the industry," said James Fallon, director of downstream energy consulting at IHS Global Inc., which did the study. The investments will break down into an especially strong year this year, carrying over from a "banner year" in 2013, and will sustain at annual investments of at least $80 billion in midstream and downstream infrastructure until 2020.

The report noted developing shale formation areas, such as the Bakken in North Dakota and Eagle Ford in Texas, will require more extensive investments in gathering and support facilities because they are not historic production regions.

The study, based on information directly and indirectly from producers, also predicted the pipeline infrastructure in 2015 will "have almost no resemblance" to the infrastructure in place in 2005. It said pipelines will be the primary mover of oil and gas despite other methods increasing in popularity as of late. Investments in crude pipelines increased from $1.6 billion in 2010 to $6.6 billion last year.

The study found an annual average energy infrastructure investment of up to $95 billion would contribute as much as $120.58 billion to the U.S. gross domestic product, support as many as 1.15 million jobs and provide an additional $27.45 billion in government revenues on average, annually between 2014 and 2025."

POST Online Media Contact