Oil & Gas Transportation & Storage Industry Profile

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 Australian Pipeline Trust, Aziatski Gazoprovod (Kazakhstan), Enbridge (Canada), Engie (France), TransCanada, and Transneft (Russia).

The US oil and gas transportation and storage industry includes about 3,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $40 billion.

Recovery of oil and natural gas from wells is covered in the Oil & Gas Exploration & Production industry profile. Direct and wholesale natural gas distribution is covered in the Natural Gas Distribution & Marketing industry profile. Pipeline operators that specialize in transportation of crude oil, refined petroleum products, or natural gas are covered in separate industry profiles.

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 20 largest companies account for about 75% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are transportation of bulk natural gas and liquefied natural gas (about 60% of US revenue), crude oil, and refined petroleum products. Other services include transportation of products such as ethanol, coal, and carbon dioxide.

Oil and ...