*Generally includes delivery systems, communications, offce furniture and equipment, vehicles and other work equipment, and other property.
Source: US oil pipeline company annual reports (Form 6) to FERC for 2014
OIL PIPELINE INVESTMENT
Crude oil Products
FIG. 3 PIPELINE CONSTRUCTION COSTS—ESTIMATED
*Generally includes surveying, engineering, supervision, administration and overhead, interest,
contingencies and allowances for funds used during construction (AFUDC), and regulatory fling fees.
Source: US FERC construction permit flings, July 1, 2013, to June 30, 2014
costs and ROW costs increased on a
per mile basis.
Actual land pipeline construction
costs for projects completed in the 12
months ending June 30, 2015, were
roughly $400,000/mile less than estimated costs. Lower than expected
miscellaneous costs more than made
up for higher than estimated labor and
ROW charges. Actual compressor station costs were more than $100/hp less
than estimated costs for projects completed by June 30, 2015.
US pipeline data
At the end of this article, two large tables p. 123 offer a variety of data for
US oil and gas pipeline companies:
revenue, income, volumes transported, miles operated, and investments in
physical plants. These data are gathered from annual reports filed with
FERC by regulated oil and natural gas
pipeline companies for the previous
Data is also gathered from periodic
filings with FERC by those regulated
natural gas pipeline companies seeking FERC approval to expand capacity.
OGJ keeps a record of these filings for
each 12-month period ending June 30.
Combined, these data allow an
analysis of the US regulated interstate
• Annual reports. Companies that, in FERC’s determination, are involved in the interstate movement of oil or natural
gas for a fee are jurisdictional to FERC, must apply to FERC
for approval of transportation rates, and therefore must file
a FERC annual report: Form 2 or 2A, respectively, for major
or nonmajor natural gas pipelines; Form 6 for oil (crude or
The distinction between “major” and “nonmajor” is defined by FERC and appears as a note at the end of the table
listing all FERC-regulated natural gas pipeline companies
for 2014 at the end of this article.
The deadline to file these reports each year is April 1.
For a variety of reasons, a number of companies miss that
deadline and apply for extensions, but eventually file an annual report. That deadline and the numerous delayed filings
explain why publication of this OGJ report on pipeline economics occurs later in each year. Earlier publication would
exclude many companies’ information.
• Periodic reports. When a FERC-regulated natural gas
pipeline company wants to modify its system, it must apply
Operating Net income, Operating Net income,
revenues, $1,000 $1,000 revenues, $1,000 $1,000
––––––––––––––– Gas ––––––––––––––––– –––––––––––––––– Oil –––––––––––––––
2005 16,375,921 3,863,331 7,917,176 3,076,476
2006 17, 122,586 4,015,253 8,516,563 3,743, 115
2007 21,736,725 4,765,815 8,996,329 3,756,749
2008 19,797,663 5, 104,772 9,243,677 3,931,602
2009 18,953,292 4,657,340 9,986,799 4, 131,409
2010 19,790,011 5,210,388 11,219,154 4,582,285
2011 20,545,763 4,888, 125 12,562,252 6, 109,055
2012 20,969,959 4,764,796 14,007,060 6,423,112
2013 21,273,449 4,302,305 15,733,837 6,980,508
2014 24,514,239 4,776,194 19,281, 113 9,572,871
Source: US FERC annual reports (Forms 2, 2A, and 6) by regulated interstate natural gas and oil pipeline companies
PIPELINE COMPANY REVENUES, INCOMES Table 2