In the pipeline: Electricity generation operators will boost industry demand

The Gas Pipeline Transportation industry has experienced a variety of conditions over the past five years to 2017. As a whole, natural gas consumption has increased, spurring production and demand from industry operators. Industry operators are investing heavily in expanding their infrastructure to maintain capacity, resulting in higher capital spending during the five-year period. Industry growth is forecast to continue over the five years to 2022. Electricity generation operators will continue to demand natural gas as prices remain near historic lows. Natural gas extractors will also expand production in shale basins during the outlook period, which will lead to continued growth in the amount of gas that needs to be transported...purchase to read more.

Industry Statistics & Market Size
Revenue
$26bn
Annual Growth 12-17
1.3%
Forecast Growth 17-22
Profit
Employment
30,898
Businesses
2,242

Industry Threats & Opportunities

  • Electricity generation operators will continue to demand natural gas as prices remain near historic lows
  • Electricity generators are also increasing their reliance on natural gas to produce energy
  • Natural gas-pipeline capacity is expected to expand quickly over the next five years
  • Industry Report - Industry Products Chapter

    Operators in the Gas Pipeline Transportation industry are expected to earn the bulk of their revenue from fees paid for hauling natural gas from processing plants to local distribution systems via pipelines. Gas is usually transported through more than one pipeline or pipeline system, with each operator charging a fee. The Federal Energy Regulatory Commission (FERC) regulates these fees according to operating and maintenance expenses, and enabled a return on investment set as a percentage of the capital invested in facilities. The FERC generally sets rates on a pipeline-by-pipeline basis and a maximum permitted rate is usually established. However, according to the Interstate Natural Gas Association of America, pipeline customers often negotiate discounts below the cap...purchase to read more.

    Additional Insights for the Gas Pipeline Transportation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Gas Pipeline Transportation Industry are

  • Having a large supply contract
  • Having links with suppliers
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Electric power consumption and Industrial production index in the Gas Pipeline Transportation industry impact industry performance..

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    What's in this report

    What is the Gas Pipeline Transportation Industry?

    This industry transports natural gas from processing plants to local distribution systems using pipelines. This industry does not include the recovery of natural gas from wells or the processing of natural gas.

    Industry Products
  • Natural gas from gas wells
  • Natural gas from oil wells
  • Natural gas from shale gas wells
  • Natural gas from coalbed wells
  • Brokering of natural gas and other
  • Industry Activities
  • Natural gas-pipeline operation
  • Natural gas storage
  • Natural gas transport
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Electric power consumption
  • Industrial production index
  • World price of natural gas
  • Prime rate
  • World price of crude oil

  • Current Performance
  • Natural gas prices
  • Capacity increases
  • Chart: Revenue Growth

  • Industry Outlook
  • Natural gas leading the way
  • Stunted profit
  • Uneven development
  • Table: Gas Pipeline Transportation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gas Pipeline Transportation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Natural Gas Distribution

  • Key Selling Industries
  • Metal Pipe & Tube Manufacturing
  • Oil Drilling & Gas Extraction

  • Products & Services
  • Natural gas from shale gas wells
  • Natural gas from gas wells
  • Natural gas from oil wells
  • Natural gas from coalbed wells
  • Brokering of natural gas and other
  • Chart: Gas Pipeline Transportation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Gas distribution industry
  • Electricity generation operators
  • Large industrial users
  • Chart: Major Market Segmentation for the Gas Pipeline Transportation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    Profit and purchases DepreciationWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Gas Pipeline Transportation

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gas Pipeline Transportation Industry

  • Industry Globalization
    Kinder Morgan Energy Partners LP, Enbridge Energy Partners LP, The Williams Companies Inc,
  • Table: Kinder Morgan Energy Partners LP - financial performance
  • Table: Enbridge Energy Partners LP - financial performance
  • Table: The Williams Companies Inc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gas Pipeline Transportation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Gas Pipeline Transportation Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Oil and natural gas price index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Federal Energy Regulatory Commission (Ferc)
  • The US federal agency with jurisdiction over natural gas pricing, liquefied natural gas terminals and interstate natural gas pipelines.
  • Liquefied Natural Gas (Lng)
  • Natural gas that has been temporarily converted to liquid form for easier storage or transportation.
  • Natural Gas
  • A naturally occurring gas consisting of 50% to 90% methane and small amounts of heavier hydrocarbons, such as propane and butane.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Gas Pipeline Transportation can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Gas Pipeline Transportation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Gas Pipeline Transportation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Gas Pipeline Transportation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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