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Linn Energy, LLC Message Board

  • rlp2451 rlp2451 Dec 27, 2012 7:35 PM Flag

    $45 Billion To Be Spent in 2013 on Energy Infrastructure

    Despite all the nay-sayers here on this board:

    Surging energy production in North America is prompting billions of dollars of investment next year on pipelines and other infrastructure projects to move oil and gas around the continent.

    The existing U.S. pipeline network isn't configured to fully serve the new production areas in the center of the country, from North Dakota to South Texas, where oil and natural gas production have started booming. As a result, companies are finding creative ways to move those fuels to market, including a return to early 1900s favorites: iron horse and barge.

    The number of oil-laden tanker trains has grown, as has the number of river barges pushed by tugboats down the Mississippi River. Oil pipelines that once pumped crude north from the Gulf Coast increasingly are being reconfigured to flow south to refineries there.

    Some natural gas pipelines originally built to ship fuel from the Rocky Mountains and Gulf to the East Coast are little used because of new natural gas discoveries in Pennsylvania. Those pipelines are being considered for conversion to handle oil.

    "Our infrastructure over the past 40 years has been set up for this idea of the U.S. as an energy-deficit nation," said Joseph Stanislaw, an independent senior energy adviser to Deloitte LLP. "Now we have this tectonic shift where we can become an energy surplus nation. That means we have to transform, upgrade and rearrange our logistics."

    AECOM Technology Corp., a firm that does industrial project design, management and engineering, forecasts that in 2013 as much as $45 billion may be spent on new or expanded transportation infrastructure, including pipelines, rail cars, rail terminals and other projects, said Seth Deutsch, an AECOM senior vice president.

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    • "Maybe you should tell it to Mr. Rockov?"

      You're really pathetic. Anyone here is capable of looking at a chart and at distribution growth history. Nobody but you needs to run to Rockov to validate every obvious observation.

      • 2 Replies to lizahuang54321
      • So, now it is time to revert to the usual name calling?
        Same routine still?

        More harsh words without any substance, no specific reference...just go read a chart

        It looks like you do not know how to read a chart.

        This is the one to read.....

        What does the chart on slide #21 on the Dec. 6, 2012 Linn presentation say?


        This is the title of the slide......just so you do not get confused...again:

        "LINN Total Return and Stock Price Appreciation (LINE IPO – Present of ~260%)"

        And What does it say for the TR Alerian index?
        Hint: 157% seem to still have a problem with every obvious observation including reading charts?

        And, it used to be when I thought you were just intentionally annoying.

        After that cut and paste job of yesterday about sour or sweet crude and you directing me to use google....after I had already been doing that and had been reading articles that all say sour..

        You could have just said that you did not know, if you did not know. are obviously usless as well as annoying.

      • Of course bashing the best management team record in EP let alone beginning from natural gas EP.

        Lisa has not only occult investment theories proven not to work based on science but has trouble with objective reality.

    • Don't forget "pipelines had a lucky streak for the last 20+ years but they are all finished now as an investment class". Probably the most inane comment of all the rubbish put out by self -appointed board moderators.

    • In a separate but related news item:

      Industrial gas demand may climb by 300 million cubic feet a day in 2013, Barclays Plc said yesterday, citing the expansion of plants using gas as a feedstock. Industrial consumption totaled about 18.62 billion cubic feet a day this year, according to the Energy Department.

      “The shale revolution is triggering an avalanche of industrial capacity expansions,” Biliana Pehlivanova, an analyst at Barclays in New York, said in a note to clients.

      Stockpiles have reached record highs in each of the past four years as hydraulic fracturing, or fracking, boosted output. U.S. natural gas production in the lower-48 states rose to a record in September as new wells in the Northeast’s Marcellus shale formation started producing, the Energy Department said in the monthly EIA-914 report released Nov. 30.

      Statoil ASA, Norway’s biggest oil and gas producer, bought 70,000 acres in the Marcellus region to boost oil production amid falling U.S. gas prices.

      The assets, which are currently producing at about 5,000 barrels of oil equivalent a day, have a so-called risked resource base, a measure of reserves, of 300 million to 500 million barrels of oil equivalent, the Stavanger-based group said in a statement today. The acreage in Ohio and West Virginia was purchased from Grenadier Energy Partners LLC, Protege Energy II LLC and PetroEdge Resources II LLC, Baard Glad Pedersen, a spokesman for Statoil, said by phone.

      “A majority of the net acres in this transaction are located in the liquid-rich part of the Marcellus,” Statoil said. “The market for these products is substantially better- paying than the current market for dry gas in the U.S.”

    • Great Example. RLP wasted oceans of real posters time about how small the Bakken resource is due to 'decline' rates and cost of drilling.

      The reality is the average life span of a Bakken well is close to 47 years as the amount of natural gas was grossly under estimated. Like the

      Another factor in gains by rail transport: New pipeline construction faces legal and permitting challenges from environmental groups. Local opposition has prevented pipelines from connecting oil fields in the middle of the country to refineries on the east and west coasts, said Brad Olsen, an analyst with Tudor, Pickering, Holt & Co. "As long as there are no pipes to replace imported high-cost oil on coasts, rail is the only option."

      Growing resistance to new pipeline projects makes the use of existing pipelines more attractive, industry officials say. Last summer, Enterprise Products Partners LP EPD -0.30% and Enbridge Inc. ENB.T +0.02% completed work reversing the Seaway Pipeline so it carries crude oil south to Texas instead of north to Oklahoma.

      Houston-based pipeline giant Kinder Morgan Inc. KMI +0.06% said it is considering taking an underused section of natural gas pipeline that runs from West Texas to California and converting it to an oil pipeline. TransCanada Corp. TRP.T -1.06% is gauging interest in a similar conversion in Canada.

      The real environmentalist insanity here is that pipe is far more efficient, safer and cleaner than trains. But then reason and honesty is not part of the environmentalist religion.

      A very good reason to carefully look at Northfolk Southern.

      • 1 Reply to norrishappy
      • norris, there was a post over at KOG today about RRs that you would probably find interesting.....If I am reading over there and spot the symbols, I will post them.

        One of cos discussed here recently has an interest in a pipeline and also refines Bakken & Canadian crude...the symbol is NTI.

        I might not usually be interested in either of ALDW or NTI, but, the more I read, the more interesting they seem.

        I think Jack may have another few to look at......WMC, NTI & ALDW.......and if you like hybrid mreits the price on WMC looks pretty good compared to last week (today was ex-div).

    • You must have this board confused again.

      This is where you learned about the North Dakota pipeline authority website and how many pipeline projects are now going on in ND......oh, remember now?

      I think I read one over at KOG or was it EVEP, where they just seem to love your posts.

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