Pipelines Move Energy More Efficiently, Cleanly Than Other Methods

Crisscrossing the United States are 2.4 million miles of pipeline that transport a variety of energy products from producers and refiners to tank farms and end users. One of the main reasons that pipelines have become such an important component of America’s energy infrastructure is their cost-effectiveness relative to other fuel transportation options. 

According to the Association of Oil Pipelines, the cost to move a barrel of crude oil or refined petroleum products is significantly cheaper than other methods of transportation, such as rail. Crude oil, for example, costs between $10 and $15 dollars per barrel to move by train, compared to $5 per barrel if shipped via pipeline. 

The cost effectiveness of pipelines allows companies like Colonial to move energy long distances without adding significantly to the cost paid by end consumers. The National Academy of Sciences estimates that only 2.5 cents of the price of a gallon of gas can be attributed to pipeline transportation costs. That’s a remarkable achievement considering how far petroleum products often have to travel before they end up fueling cars and aircraft. 

Another important benefit of pipelines is their reduced environmental cost. Research indicates that pipelines emit fewer greenhouse gasses than other transportation sources. For example, the environmental impact statement for the Keystone XL project concluded that annual greenhouse gas emissions would be 42 percent greater under a rail and shipping scenario than if the product was transported via pipeline. Pipelines transport energy less expensively and more efficiently.