Thursday, November 8, 2007

Pipelines are the Nation’s Energy Lifeline

There is a 200,000-mile petroleum pipeline network constantly working to supply us with the products that make our nation tick. America's economy depends on these pipelines to run efficiently, safely and to be reliable. Every day this network delivers us the energy we need to survive. It brings us the gasoline to run our machinery and transportation vehicles, heating oil to make our homes and work places comfortable, and jet fuel to fly both people and products to places all over enabling manufacturing and production to happen in a timely fashion. The primary means of moving crude oil, gasoline, diesel fuel and other petroleum products to consumer markets are these pipelines. Because most of them are buried underground, and largely unseen, they are safe from harm. They move crude oil from oil fields on land and offshore to refineries where the oil is turned into other fuel products. From the refineries, the oil and fuel products go to terminals where they are trucked to retail outlets. Americans use more than 20 million barrels of oil products each and every day. Pipelines operate constantly, 24 hours a day, seven days a week to keep the essential fuel flowing through this network to consumers.

Safely, cost effectively, and efficiently, this pipeline network delivers us with a commodity that is fundamental to the American way of life. Transported through the pipelines is the energy to fuel our cars, trucks, busses, airplanes, and ships—the vehicles that keep us going. Also through the pipeline network, crude oil is delivered to refineries that convert it into essential material for the core industries producing plastics, pharmaceuticals, and agriculture—the major products necessary to maintain the life style as we know it.

Realizing how important the pipeline network in America is, the petroleum pipeline industry’s safety record remains strong and is constantly improving. Operators are doing a better job steadily of protecting pipelines from corrosion, damage by third parties, weather or natural disasters, and any other harmful circumstances. Government agencies that regulate the pipeline industry include the U.S. Pipeline and Hazardous Materials Safety Administration (part of the U.S. Department of Transportation), the U.S. Environmental Protection Agency, the U.S. Federal Energy Regulatory Commission.

Regulations have forced a recording of the distribution of energy products through the pipeline network. The specific product is measured at the receipt point in the pipeline and again upon delivery to document the amount of product moved from one point to another. The amount charged to the customer depends on the product, the amount transported, and the distance between the receipt and delivery points. This process is similar to how you ship a package from one place to another. First, a carrier is chosen; the pick up and delivery point are confirmed; the weight is accounted for; and a pre-established fee is paid for the service. Like shipping packages, transporting different batches of petroleum can encounter unexpected delivery changes. However, unlike the package tracking, tracking and measuring pipeline volumes can be real challenges. Companies like Triple Diamond Energy Corporation accept these challenges as a part of doing business within the energy sector providing such an important commodity.

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