The crude oil and natural gas mining industry is difficult to ignore. Shell recently sold share gas rights in shale formations in the Marcellus and Utica shale formations in addition to its gas rights in Louisiana. The two transactions were separate, and they totaled $2.1 billion.
Mining crude oil and natural gas is not like trying to strike gold. The Shale Boom is well underway, and the funds are real. There is a distinct possibility that midstream business could be the next New Deal, which largely dragged the United States out of the Great Depression in the 1930s.
Why Midstream Transport and Infrastructure Is Integral to Continuing Operations
Safe and effective transport of products to pipelines is an ongoing necessity for mining operations. Similarly, it is almost impossible to justify the cost of building lasting pipes and other infrastructure until there is enough product to fill the pipes. In the interim, the midstream sector is directly responsible for shipping crude oil and natural gas to the nearest available pipelines. Instead of implementing social engineering to create jobs and attempt to drive revenue, midstream businesses can support lasting transportation needs in a variety of ways.
Proposed Nation-Wide Network of Oil and Gas Pipelines
A nation-wide network of pipelines for oil and natural gas was proposed to replace the currently fragmented network, which is similar to turning a network of highways into the interstate system in the United States. Recent accidents that resulted from unsafe transport such as the freight incident in Quebec have also raised concerns about safety and reoccurring costs during the transportation process. Replacing demolished rail is not particularly cost-effective from any standpoint, and the incident interfered with other commerce during repairs.
Maintenance of New Infrastructure and Existing Rail and Road
New infrastructure would require maintenance, which is yet to be compared to the costs associated with additional maintenance for rail and road due to excessive use in largely rural areas. Additionally, the cost of fuel to run ground transportation for continual and lengthy periods of time is a factor that is difficult to discount.
However, the costs associated with a steady workforce in the midstream sector are not likely to change dramatically. After all, it is still necessary to use ground transportation to get crude oil and natural gas to existing pipelines from upstream operations, and it is necessary to use ground transportation to supply mining operations with everything necessary for setup as well as day-to-day activities.
A More Advanced Solution to the Looming Energy and Financial Crises
Using domestic products is typically eight times less expensive than paying for tariffs and other costs associated with conducting business overseas. Energy needs in the United States continue to grow, and advancements in the midstream sector could provide necessary infrastructure to keep fuel costs lower than they would be otherwise. The billions of dollars routinely spent in shale mining transactions demonstrate that the industry continues to thrive. Instead of attempting to get a nugget of gold, advanced industry has developed the jumping off point for sustainable jobs, infrastructure, and revenue. The ongoing investment in crude oil and natural gas mining can benefit communities, states, and the entire nation.
Joseph Barone
President
ShaleDirectories.com
610.764.1232
www.shaledirectories.com