Investment of $890 billion (€655 million) over the next 12 years in oil and gas transportation and storage infrastructure will have a major impact on the US economy, according to a new study by information and analytics firm IHS Global.
IHS notes that dramatic increases in domestic crude oil and natural gas production are resulting in a continuing period of notable investments that include pipelines, rail, ships, storage facilities, refineries and facilities to liquefy natural gas.
Between 2014 and 2020, the study predicts, an average of more than $80 billion will be invested annually in petroleum infrastructure.
After 2020, that investment will moderate but the research firm expects direct capital investment by 2025 will still be nearly $60 billion.
These infrastructure investments come with the development of the Gulf Coast and the Eastern seaboard as major hubs for storage, to which domestic oil and gas is being moved from the centre of the country.
IHS forecasts about 60% of the investment will be in crude oil and natural gas gathering systems and direct production support facilities, driven by 'wide oil-to-gas price spreads'.
The study says these investments will likely shift back to natural gas as prices recover.
The study predicts that infrastructure investment will contribute $94 billion to US GDP each year from 2014 to 2025. - See more at: