Now, the "Red Queen" has apparently gotten off one treadmill and gotten on another. The new treadmill is the "midstream" or "pipeline" treadmill. Anyone following the blog and/or following RBN Energy is well aware of this issue.
Now, we have a short article from Bloomberg via Rigzone that tries to quantify how much this build-out is going to cost: $170 billion over the next seven years. Data points:
- gas output will expand by 24 billion cubic feet, or 32 percent, through 2025 from last year
- to support that growth, the country’s gas industry needs to spend $170 billion over the next seven years on pipelines, compressor stations, export terminals and other related infrastructure [see source at link]
- the Permian Basin, know for its oil-rich layers of rock, is facing the threat of having to slow down the output of crude because drillers lack capacity to handle all the the gas that’s flowing as a mere byproduct [the very problem the Bakken had]
- for companies building multibillion-dollar plants to chill gas into liquid and ship it abroad, the abundance of cheap gas from the Permian in West Texas is an advantage
- developments there “will happen” because it’s an environment supportive to energy infrastructure
- that may not happen fast enough for Appalachia [again, according to the expert at the link]