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Pipeline Construction Slows, Business and Industry Trends Analysis

The recent low prices for crude oil and natural gas have changed pipeline construction worldwide. In North America, many proposed pipelines have been dropped completely, delayed due to economic reasons or deferred due to regulatory issues.

A major Canada-based company, TransCanada, had proposed a new $13 billion, 48-inch diameter, 1,700-mile crude oil pipeline in 2008 that would run from Hardisty, Alberta south through six U.S. states, ending in Houston and Port Arthur, Texas on the Gulf of Mexico. The northern end of the American side of the project was rejected by the Obama Administration in November 2015, while the southern end, which runs between Cushing, Oklahoma and the Gulf of Mexico, was completed in early 2014. The fact that the Keystone will not be completed any time soon, if ever, will likely increase the shipment of Canadian crude via railways.

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