Natural gas has become one of the most efficient and clean energy resources on the planet, but not without the help of human innovation. The precious natural resource is an excellent energy source for so many different things due to a long history of utilizing natural gas.
For most of the 1800's, the primary use of natural gas was to fuel street lamps, providing light for night transportation. Because there was no real way to transport natural gas over long distances, street lamps were among the few things that could be fueled by gas, but in the late 1920's, piping technology began to advance. Previously, pipelines were poor in quality with bad joint technology, and they were used primarily for transporting water, sewage, or other materials that are not extremely pressure sensitive. In the '20s and '30s, pipeline technology took a turn for the better, and a larger transportation network began. Once a reliable pipeline system was created, the demand for natural gas grew exponentially in residential, industrial, and electric utility markets.
As in all industries, the higher the demand and more money involved, the more regulation needed. In 1938, the federal government passed the Natural Gas Act to regulate the price of natural gas. Lawmakers felt that the natural gas industry would quickly become a monopoly in the absence of regulation. At the same time, the federal government established an incentive program for investing in pipeline construction. This was created to insure the quality of a national network of pipeline. Certain regions were given to individual natural gas companies with exclusive license for pipeline development. This gave companies a vested interest in quickly establishing an efficient transportation system. The Supreme Court later made a ruling to regulate wellhead prices as well in 1954.
Many of these regulations and incentives have changed dramatically due to natural gas shortages in the 1970's. Interestingly enough, the federal government believed that price regulations were stifling companies and putting the industry at risk, and they were right. During the '80s and '90s, natural gas price regulations fall away, introducing more competition into the market. Remarkable, the supply of natural gas increased dramatically, and the prices actually fell. A capitalistic market actually stabilized the industry through dynamic competition. This was also partly responsible for a great deal of technological advances in natural gas location, extraction, and pipeline transportation. This increased efficiency continues to lower the cost of natural gas will the demand continues to support individual drilling and pipeline companies like Western Pipeline Corporation.
In 1990, the Clean Air Act Amendments challenged the fossil fuel industry in general, and greatly increased the demand for natural gas. Natural gas is now utilized by more than a billion customers in the United States. This once simple street lighting fuel has become one of the cleanest most efficient fuel sources on our planet, and it will continue to greatly impact the future history of human civilization.
About the Author: Bob Jent is the CEO of Western Pipeline Corporation. Western Pipeline Corp is a successful, private independent producer of oil and natural gas.
Showing posts with label western pipeline corp. Show all posts
Showing posts with label western pipeline corp. Show all posts
Monday, July 23, 2007
Federal Interest in Pipeline Safety
In 2003, the United States Department of Transportation issued grants to three major entities, engaged in safety oriented pipeline improvement projects. This was an over $500K increase from the previous years investments, totaling at $5.8 million. The Department of Transportation is dedicated to the safety and efficiency of our nations pipeline transport system, and saw an investment in pipeline safety research for both public and private sectors very important. This effort was intended to strengthen our citizens' confidence in the safety and security of the pipeline industry. In fact, the previous year, the Pipeline Safety Improvement Act was issued for the similar purpose of insuring safe pipeline operations in the future through the cultivation of new innovative technologies.
This Act and the 2003 grants followed a previous set of awards the Dept. of Transportation, DOT, issued to enhance pipeline controls, operations, and monitoring solutions. These previous grants included a $627,000 pipeline related funding project and three other broad agency announcements for pipeline research and development, resulting in approximately $2.8 million awarded to 13 different research endeavors. The private pipeline industry then matched those awards by providing $3 million for future research and development.
The RSPA branch of the DOT issued awards for its third BAA in September of 2003 for projects focus on improving pipeline materials and prolonging the lifetime of previously installed pipeline systems. This covered a large variety of components and materials that might be enhanced. The awards in 2003 included the Battelle Corporation of Columbus, OH, to estimate the value of current pipeline construction, the CC Technologies of Cublin, OH, to create guidelines for pipeline operators, and the FINO AG of Hildesheim, Germany, to improve the current pipeline inspection system for "pigless," small diameter pipelines. These are extremely brief and summarized descriptions of these awarded research and development projects, but they lend a general idea of federal interests in the safety and efficiency of our national pipeline network.
The Federal Department of Transportation RSPA is responsible for the safety of our pipeline system, controlling the transport of hazardous fuels to consumers and industrial locations around the country. It is in the interest of private companies such as Western Pipeline Corporation, and in the interest of the public to have rapid response for pipeline emergencies, advanced training for pipeline professionals, and the best in applied technologies and sciences to increase the efficiency and safety of the pipeline transportation system.
About the Author: Bob Jent is the CEO of Western Pipeline Corporation. Western Pipeline Corp is a successful, private independent producer of oil and natural gas.
This Act and the 2003 grants followed a previous set of awards the Dept. of Transportation, DOT, issued to enhance pipeline controls, operations, and monitoring solutions. These previous grants included a $627,000 pipeline related funding project and three other broad agency announcements for pipeline research and development, resulting in approximately $2.8 million awarded to 13 different research endeavors. The private pipeline industry then matched those awards by providing $3 million for future research and development.
The RSPA branch of the DOT issued awards for its third BAA in September of 2003 for projects focus on improving pipeline materials and prolonging the lifetime of previously installed pipeline systems. This covered a large variety of components and materials that might be enhanced. The awards in 2003 included the Battelle Corporation of Columbus, OH, to estimate the value of current pipeline construction, the CC Technologies of Cublin, OH, to create guidelines for pipeline operators, and the FINO AG of Hildesheim, Germany, to improve the current pipeline inspection system for "pigless," small diameter pipelines. These are extremely brief and summarized descriptions of these awarded research and development projects, but they lend a general idea of federal interests in the safety and efficiency of our national pipeline network.
The Federal Department of Transportation RSPA is responsible for the safety of our pipeline system, controlling the transport of hazardous fuels to consumers and industrial locations around the country. It is in the interest of private companies such as Western Pipeline Corporation, and in the interest of the public to have rapid response for pipeline emergencies, advanced training for pipeline professionals, and the best in applied technologies and sciences to increase the efficiency and safety of the pipeline transportation system.
About the Author: Bob Jent is the CEO of Western Pipeline Corporation. Western Pipeline Corp is a successful, private independent producer of oil and natural gas.
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