For the shipper, though, regulation means that there is always someplace to go if the shipper is unhappy with the rates. Today we continue our review of crude oil pipeline economics with an overview of who regulates oil pipelines, how they do it, and what it means for rates. Many factors are weighed before a midstream company commits to building, or a shipper commits to shipping on, a major crude oil pipeline. For crude oil pipelines, it’s often not enough to get along with their shippers and keep FERC activity from going on. Opinion 154B, in 1985: “Wasn’t 154B when FERC really took hold and pushed its own way of doing things on oil pipelines? But the developer was counting on a constant rate over ten years, not one that trails off over time, the way cost-of-service rates do. For the shipper, it can be a whole bunch of extra tools to get bargaining leverage with the pipeline, or even just to force the rates down over the life of a contract.

It could easily be 20 years or even longer. No longer can someone who digs even a little say that is true. As we indicated back in Part 1, the same rules apply to refined-product pipelines, who have customers such as airlines, and thus usually end up in a lot more litigation. Energy Policy Act of 1992: “Good thing Congress streamlined things in EPAct92 and let FERC give us some consistent rules. Another BP Statistical Energy Survey of 2007 reported that the country had a natural gas production of 4.01m³ billion and the consumption stood at 3.74 billion cubic metres. The Federal Energy Regulatory Commission, or FERC, the same agency that regulates natural gas pipelines. We’ll focus most heavily on Federal regulation, since it’s the most complicated. It’s the same thing any regulated utility (or gas pipeline, for that matter) does in a rate case. The impact and mechanics of rate regulation depend a lot on who does the regulating. A lot of that depends — I think, from what we understand, EnCana has kind of a budgeting meeting in June and we’ll just have to see what their decision might be. If you want to know much more detail, go to an Association of Oil Pipelines meeting sometime and get the full story.

4.41 per barrel, depending on how much oil moved and how the contracts were structured. For the pipeline developer and owner, it can be a bunch of new hoops to jump through and keep jumping through, depending on who does the regulating. This can be where we get into two different kinds of shippers: “Committed” and “Uncommitted.” Frequently shippers who have committed to long-term contracts get billed as if they took their full contract every day. As an aside, this same industry insisted for two decades that the science behind climate change was uncertain and therefore that we should not take any action. If we know it is possible to change the chemical makeup of the air we breathe just by breathing it than we know we can effect change on any aspect of our lives because it is impermanent. The effect of phenanthrene on the HDS rate appeared to be related to the differences in the adsorption ability of DBTs.

So that’s our whirlwind tour of Federal rate regulation. But now, we come to a crucial question: Will the developer be able to charge that much, if a Federal or state regulator gets to review the rates? Very simply, interstate pipelines, that actually cross one or more state lines, get regulated by the Feds. However, there are more reasons and benefits. In Part 1 of this series we discussed the fact that new pipeline development is driven by either need or opportunity, and more often than not, a combination of the two. In Part 2, we focused on estimating capital costs. Remember, the range of rates we got in Part 3, to come up with what would probably make a developer happy? But meanwhile, if regulation is too unfriendly, too likely to deny the pipeline owner the ability to make enough money, it can keep anyone from wanting to build the pipeline in the first place.

This gives indications of what the next moves in the market will be as well as whether there will be a reversal or continuous pattern which takes place in the market. 1 discovery well. When it came in to much fanfare on February 21, 1947, Leduc laid the groundwork for one of the world’s great post-war oil booms. This report inbuilts the detailed analysis about upcoming market trends and key probabilites in the market along with market size and forecast of various type of Micro Turbine in the United States as well as regional markets. 1 This level can be adapted to local conditions, provided it is justified by a risk analysis in the impact review. He helped out the local gov there and had time to take some pictures. Those numbers are with twelve out of fourteen available data days,” said George Murphy, group researcher and member of the Consumer Group for Fair Gas Prices.