Why do Texas and New Mexico need a robust pipeline network for its energy development?
- The GAIN Coalition supports commonsense infrastructure development that strengthens our nation’s economy and creates jobs – pipeline investment accomplishes both. Projects like the Permian Highway, Lone Star Express, and Whistler pipelines will transport natural gas and crude oil to consumer markets from the Permian Basin in Texas and New Mexico.
- With the region’s prolific resource production – Texas as the nation’s largest producer of oil and natural gas, New Mexico as the third largest crude oil producer and a top producer of natural gas – new infrastructure is critical to safely delivering energy to consumer markets and strengthening our economy while also helping to promote environmental conservation and offset flaring. Modern pipelines are key to bolstering American energy capabilities and will serve economic, national security, and safety interests, while also ensuring additional access to energy for our allies around the globe.
Are Pipelines Safe?
- The Department of Transportation has determined pipelines to be the safest, most environmentally-friendly, and most efficient mode of transportation for natural gas and crude oil. Natural gas pipelines undergo a rigorous review and permitting process before receiving the necessary approvals for construction and operation, and must be in full compliance with state and federal regulations. Modern pipelines, including the Permian Highway Pipeline, have a number of safety s mechanisms – including electronic surveillance systems, visual right of way inspections, and “smart pigs” – which help internally inspect equipment. The pipeline’s developer has committed to complying with local, state, and federal authorities to stay on top of all industry standards.
Why is the Permian Highway Pipeline needed?
- The Permian Highway Pipeline will alleviate significant bottlenecks in the Permian Basin that have become a serious issue as production has increased in recent years. According to the Dallas Federal Reserve, natural gas development in the Permian basin has skyrocketed by 250% since 2011. Natural gas production from the Permian Basin accounts for 14.7% of all of U.S. production and serves as a crucial shale reserve. This dramatic production growth has also led to record levels of flaring in the U.S. As reported by Reuters, Texas producers flare 3.8% of all natural gas production. The PHP will safely add 2.1 billion cubic feet of daily capacity to the Permian, allowing for a significant reduction in flaring practices. Moreover, infrastructure projects like the PHP can safely deliver resources to market as production increases.
What are the economic benefits of the Permian Highway Pipeline Project?
- Texas is a stronghold for U.S. energy, and tax revenues from the PHP will serve communities across the Lone Star state for decades. An estimated $1 billion in oil and gas production tax revenues enabled by the project will go to support schools systems, emergency services, and other vital public services across the state. Individual leaseholders will receive more than $2 billion a year in royalties – funding that can go directly into strengthening the economy. Nearly 2,500 jobs will be supported by the project’s construction, which is crucial for the small businesses and families in the region – especially in light of the COVID-induced economic downturn. Once the project is fully operational, an estimated $42 million in tax revenues will support state and local jurisdictions each year.
What are the national security benefits of developing the Permian Basin?
- American national security depends on infrastructure projects that will make energy resources accessible for domestic interests and our allies abroad. The many export facilities along the Texas coastline are crucial in transporting resources to foreign markets, and strengthening our energy infrastructure system will undermine the influence of volatile regimes – like Russia, Venezuela, and Iran – that use energy as a weapon of influence. Developing our nation’s energy resources can help alleviate the grip the rest of the world has on the global energy market.
Why do we need natural gas transported by pipelines like Permian Highway?
- Natural gas remains a critical resource in meeting our nation’s energy needs. According to the U.S. Energy Information Administration (EIA), natural gas provides nearly 40 percent of American electricity, and heats nearly half of the homes across the country. As some of the nation’s top natural gas producers, Texas and New Mexico can continue to lead the way by welcoming investment in energy development and new infrastructure projects like PHP.