- By Mark Passwaters, SNL.com, July 13, 2012
Study: $163 Currently Invested in U.S. Oil, Gas Projects
More than $163 billion is currently invested in more than 1,400 active oil and gas projects in the U.S. upstream and midstream segments, Sugar Land, Texas-based Industrial Info Resources said in a report released July 12.
In its report, Industrial Info said about $162 billion of the $163 billion is invested in 777 capital projects. More than half of the total amount — $97 billion — is invested in 333 active natural gas-related capital projects.
"With the advent of economical shale gas, natural gas liquid extraction, and improved pipeline access to the Gulf Coast, development in the oil and gas industries in the U.S. is ramping up," Industrial Info said.
The state of Texas is the leader in NGL-related infrastructure investments and project numbers, while coming in second in total investment value for natural gas projects. The state has 69 natural gas projects according to Industrial Info's numbers, an amount including gas and NGL production, processing, storage and transmission capital projects. The total cost of Texas-based projects is approximately $14 billion.
While Alaska comes in third with the total number of projects at 30, the value of those oil and gas investments is the greatest in the nation at more than $51 billion.
"While Texas boasts many smaller projects, Alaska is home to several major projects valued more than $1 billion each, most in the $5 billion area," Industrial Info said. "Alaska's projects are primarily composed of long-distance natural gas pipelines, LNG liquefaction facilities, and many high-cost drilling projects in the frigid north."
Pennsylvania is second in the nation for the total number of projects, but is fourth in project spending. Industrial Info said there are 41 projects under way in the state, representing nearly $3 billion in project spending.
"While the by-state total investment for Pennsylvania is low, the pattern of project spending in the Marcellus and Utica shale play states — Pennsylvania, New York, West Virginia and Ohio — resembles that of Texas, where individual project investments are low, but the total number of projects is high," the firm said.
Louisiana, with 25 projects, comes in third in project spending at approximately $12 billion in investments. Industrial Info credits "big ticket projects," including liquefied natural gas liquefaction trains for Cheniere Energy Inc.'s Sabine Pass LNG terminal, for the high price tag.