north american pipelines
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North American Pipelines
January 12, 2017
Golden Age Investment Club
Sources of Oil and Gas US Sources and Consumers of EnergyMajor Trends: Coal to Renewables & Gas (Utilities)
Petroleum to Electrical (Private Cars)
CO2 emissions 2015 USA
Trend: Convert Coal to Natural gas
CO2 EmissionsCoal vs Natural Gas
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Current Cost of Tar Sands Oil Natural Gas content US$3/bbl
Cost of new Oil Sands ProjectsNational Post January 22, 2015
Current production 2,400 b/dOil & Gas Journal April 4, 2016
>64 projects cancelled since 2014800,000 b/d under construction
US - Sources of OilEagleville TX 238 mm barrels (vs 80B largest in the world)
Spraberry TX 99 mm barrelsPudhoe Bay AK 79 mm barrels
Oil Pipeline ProposalsExceed additional production of 850,000 b/d by 2021 by a wide margin
Oversupply will contravene Paris Agreement
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Proposed New Capacity2,960,000 b/d
• Kinder Morgan– Trans Mountain 890,000 b/d from 300,000. Export to
Far East
• Enbridge– Line 3 760,000 b/d from 380,000. US Mid-West– Line 9B reversal 300,000 from 240,000. Eastern
Canada and Export to Europe
• Trans-Canada– Keystone XL 590,000 b/d. US Mid-West– Energy East 1,100,000 b/d. Eastern Canada and
export to Europe
Environmental Issues
• Kinder Morgan– Trans Mountain
Orca’sDangerous shipping lanes and frequent ferriesResidential communities nearby
• Enbridge – Dakota Access
Standing Rock protests, Army Corps engineer environmental review Missouri river crossing
– Line 3 expansion Appeal Assembly of First Nations
• Trans-Canada – Energy East
St. Lawrence river crossing in Quebec, Major of Montreal
US – Sources of Natural GasMarcellus 2836B CuFT
Newark TX 1951B CuFTHainesville LA 1425B CuFT
San Juan CO&NM 1025B CuFT
Natural Gas PipelinesNot affected by overseas supplies … yet
West to East mainline oversupplyPacific NW LNG
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Columbia PipelinesAcquired by Trans Canada
Spectra Energy PipelinesAcquisition by Enbridge pending approval
2007-2011 Natural Gas Prices Natural Gas vs Oil per mmBTUThese lines will likely converge again