Study: New Pipeline Investment Critical for Texas Economy
Mon, March 25, 2019
Pipeline investments will represent about $3.2 billion of this annual amount (8.4 percent), totaling $28.9 billion in capital expenditures by 2030. In addition, the CCI study also finds that:
“Without the incremental pipeline infrastructure in the unnamed capital projects we estimate the production of crude will be 9% lower than projected, the production of natural gas will be 24% lower, and the production of natural gas liquids will be 8% lower.”
As the Texas Oil & Gas Association explained in a press release, this study comes as Texas is considering costly new legislation that could greatly hinder Texas’ energy production by opening the door to increased litigation and pipeline delays. From the press release:
"This study reinforces not only the importance of infrastructure investment for the well-being of all Texans, but the real and substantial risks to growth posed by CSSB 421," said Todd Staples, president of the Texas Oil & Gas Association, a member of the Coalition for Critical Infrastructure. "CSSB 421 would encourage costly litigation and insert procedural traps into the process that would thwart new infrastructure projects that millions of Texans need now and in the future."
The CCI study predicts that “the Permian Basin will remain the epicenter of global output growth” through the mid-2020s, accounting for “about two-thirds of all U.S. oil growth during that period, and over 40% of world growth.”
To put into perspective how that translates for Texas, a recent Texas Independent Producers & Royalty Owners Association (TIPRO) analysis found that so far in 2019, there have been more than 90,000 oil and natural gas job postings in the state – 15,375 unique listings – and most of these have been concentrated in Houston and Midland in the Permian Basin.
The bottom line is that as this CCI report clearly demonstrates, Texas needs new infrastructure investment for the economy and betterment of Texans.