Oil & Gas Transportation & Storage

Oil & Gas Transportation & Storage

Brief Excerpt from Industry Overview Chapter:

Companies in this industry use pipelines to transport crude oil, refined petroleum products, and natural gas. Major companies include Energy Transfer Equity, Enterprise Products Partners, and Plains All American Pipeline (all based in the US); along with APA Group (Australia), Enbridge and TC Energy (both based in Canada), Engie (France), and Transneft (Russia).

COMPETITIVE LANDSCAPE

Demand is driven by economic activity and population growth, which drive energy use. The profitability of pipeline transporters depends largely on the volume and efficiency of their operations. Companies that operate multiple pipeline networks may enjoy economies of scale in purchasing. The US industry is highly concentrated: the 50 largest companies account for over 95% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are transportation of natural gas, which accounts for about 60% of industry revenue. This is followed by the transportation of crude oil, accounting for more than 40% of the industry's revenue. Other services include oil and gas field gather services and natural gas distribution.