For the first time in 76 years, a piece of Mexico’s oil and gas infrastructure has been sold to a foreign investor, and the deal will help bring fracked gas from Texas’s Eagle Ford shale region into Mexico. In this first major deal since the country’s landmark energy reforms, Pemex—the state-owned oil company that had kept domain over the country’s vast petroleum and natural gas reserves since they were nationalized back in 1938—sold a 45-percent stake of a prospective natural gas pipeline project to the United States-based investment funds BlackRock and First Reserve.
natural gas pipelines
DeSmogBlog, on multiple occasions, has reported that the damage caused by hydraulic fracturing, or “fracking” in the unconventional oil and gas industry goes far beyond water contamination, put in the spotlight by the documentary film “Gasland.” The multi-pronged harms were tackled in a comprehensive manner in our report, “Fracking the Future.”
Who is EOG? The Artist Formerly Known as Enron
Former President and Chief Opearing Officer of Enron, Richard Kinder, recently referred to by The Wall Street Journal as “The Luckiest Ex-Enron Employee,” now co-owns oil and gas industry pipeline giant, Kinder Morgan.
After the fall of Enron, Kinder Morgan purchased Enron's pipeline assets and built up the Kinder Morgan behemoth into what it is today, the corporation with the most extensive array of pipelines in North America.
One year ago today, at about 6:11 pm, a massive natural gas line explosion ripped apart a residential neighborhood in San Bruno, California. The blast was described as “a thunderous roar heard for miles,” and the geyser of fire that spewed forth killed eight people, injured dozens, destroyed 38 homes, and damaged another 70.
Last week, the National Transportation Safety Board (NTSB), which regulates energy and resource pipelines, revealed the findings of their year-long investigation into the causes of that fatal, catastrophic blast.
“Our investigation revealed that for years, PG&E exploited weaknesses in a lax system of oversight,” said NTSB Chairman Deborah A.P. Hersman. “We also identified regulators that placed a blind trust in the companies that they were charged with overseeing to the detriment of public safety.”
Following up on our broader look at the North American oil and gas pipeline system, with a focus on crude and the special case of tar sands oil pipelines, this week we'll tackle the tubes that carry natural gas.
Natural Gas in the United States
In 2009, the US used some 22 trillion cubic feet of natural gas, surpassing Russia as the world's largest producer and consumer of the fuel. Used for everything from heating homes to lighting cooking ranges to powering fleet vehicles to firing power plants – and often cited as a cleaner-burning energy source than coal or oil – demand for the fossil fuel has spiked in recent years.
While natural gas is produced in 32 states, the top five – Texas, Wyoming, Oklahoma, Louisiana, and New Mexico, in that order – produce a full 65 percent of the nation's total (pdf). This leaves a lot of states dependent on natural gas imports. As this map shows, 28 states need to import at least 85 percent of their gas demands.
Click here or on the map for a larger version.
Moving this huge amount of natural gas around requires a vast pipeline transmission system. Let's take a closer look at these pipes, shall we?