The Challenges in Building Permian Pipelines

The video discusses the Federal Energy Regulatory Commission's (FERC) role in approving interstate natural gas pipelines, highlighting the shortage of pipelines in the Northeast and Permian Basin. It covers the challenges of pipeline construction, including time, cost, and legal hurdles. An interview with Nora Bonnell provides insights into construction difficulties and financing models. The video also explores emerging financing models and market signals indicating the need for increased pipeline capacity.

What is one of the main challenges in building pipelines in the Northeast and Permian Basin?

• High environmental taxes

• Excessive oil production

• Shortage of pipelines

• Lack of skilled labor

According to Nora Bonnell, what has doubled in the pipeline construction process?

• Number of permits required

• Number of environmental reviews

• Timeline for obtaining permits

• Amount of oil transported

What is a potential downside of FERC's review of the certification process?

• Uncertainty over the process

• Higher construction costs

• Increased environmental impact

• Reduced pipeline capacity

What has caused damage to the MLP model in the gas industry?

• Tax reforms and FERC's interpretation

• Rising oil prices

• Increased competition

• Environmental regulations

What is a significant trend affecting pipeline financing models today?

• Longer-term contracts

• Higher interest rates

• Increased government subsidies

• Shorter-term contracts

What is the traditional model for financing pipeline construction?

• Customer contracts

• Short-term loans

• Crowdfunding

• Government grants

What is a clear economic signal indicating the need for more pipeline capacity?

• Increasing unemployment rates

• Decreasing oil prices

• Clear basis differentials

• Rising construction costs