Economic Impact of Investment in Pipeline Infrastructure

Natural gas is quickly overtaking the position of coal as the leading source of energy in the market with an annual consumption in 2012 totaling 25 trillion cubic feet. Approximately fifty percent of North America’s consumption is sourced locally and the remaining half is imported. This requires a system of pipeline, storage facilities and supply points to be setup domestically and has so far resulted in a network of about 305,000 miles of pipelines.

With the rise of demands from different sectors (household, commercial and industrial), the need for extensive infrastructure installations becomes more pressing. The forecast for 2025 is that investments on pipeline infrastructure will increase to $73.8 billion, which will provide employment, labor income, increased government revenues and input to GDP. This will also set a chain reaction of economic effects within the industry’s supply chain which benefits manufacturers of raw materials (like steel and machinery) as well as finished products (like pumps, compressors, reading instruments, etc.). As a whole, the increase demand results to a better job market for suppliers as they build up their work force, increased income and an increase in the demand of consumer goods and services forming a complete cycle of economic stimulation. Click here for the full article…


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