Pipeline Industry in the U.K

Introduction

Pipeline transport is very important in the growth and development of the economy of a nation. It is used in the transfer of numerous commodities that are used in the production of other products in the industries. The pipeline transport industry transports the largest portion of fluid products in developed countries like the United States and the United Kingdom. Though in some cases, it’s used to transport solid, this practice is uncommon and does not make a significant part of the total goods or commodities transported through the pipeline (Norenq, 2002). Pipeline transportation has several advantages over other methods used in the transport of products, fluids in particular. It is believed to be the safest and the fastest means of transporting liquids or fluids commodities. The transport of goods through pipelines eliminates the possibility of encountering frequent transport problems such as those experienced in the road transports of traffic congestion. This increases its effectiveness as means of transporting goods that are in high demand include crude oils and their products (Poe, 2006).

Pipeline transport in the United Kingdom also involves the transfers of water from the source to the residential places or households. The water pipeline system is one of the most extensive forms of pipeline transport in the U.K. however, the entire pipeline transport system also entails a system designed for the transport of waste and heating gas system to the households (Boardman, 2005). The transport of natural gas in the regions, therefore, becomes an essential commodity that is used both in the industrial sector as well as in the homes for the purpose of heating (Mohitpour, 2008). There are numerous risks that are involved in the development of the pipeline industry; hence the industry has not gone without being checked. The high sensitivity associated with the industry has led to the formulation of policies and regulations that are meant to drive the development of generation and distribution of the crude oils and their products, water as well as the work of directing sewage systems that may be undertaken by different private and public organizations, or firms (Al-Attar and Alomair, 2005).

Purpose Statement

Pipeline transport plays a vital role in the success of many businesses in the U.K. Though it’s not the leading one in terms of importance in the business sector, it’s crucial in the overall transportation systems or infrastructure in the country (Potter, 2003). In the United Kingdom, this mode of transport has been widely employed in the transport of fluid commodities, including gases such CO2, natural gas, crude oil and its processed products, water and slurry or sewage disposal (Annelieke, 2009). The purpose of this paper is to investigate the main contributing factors to the observed high difference of pipeline development network in the transport of natural gas and water in the U.K.

Hypothesis

The presence of a high initial financial layout needed for the pipeline transport of natural gas derails its rapid development and expansion of its distribution network.

Key Research Questions

  1. The paper tries to answer the following main questions concerning the development and distribution network of natural gas. It focuses on:
  2. The determination of the key players on the production and distribution of the product in the country
  3. The establishment of the market expansion trends and the drivers of the market growth in the U.K
  4. What are the capital expenses that are required for the laying down of new extension lines of natural gas in the country?
  5. The effects of government tax and standards policies and regulations on the expansion and distribution of the products in the market through pipeline transport
  6. How do the population density and distribution as well as environmental factors affect the expenditure needed for natural gas development and distribution?

References

Al-Attar, A. and Alomair, O. (2005). Evaluation of upstream petroleum agreements, exploration and production costs. OPEC review, vol. 29, 240- 270.

Annelieke, B. (2009). Pipeline-to-pipeline competition: an EU assessment: Journal of Energy & Natural Resources Law, vol. 27, 6-40.

Boardman, B. (2005). Fixing fuel poverty: challenges and solutions. London: Earthscan, 2010.

Mohitpour, M. (2008). Energy Supply and Pipeline Transportation: Challenges and Opportunities: Amer Society of Mechanical.

Norenq, O. (2002). Structural Change in the European Gas Market: IEA, vol. 6, 34-78.

Poe, W. (2006). Handbook of Natural Gas Transmission and Processing: Gulf Professional Publishing.

Potter, B. (2003). First Bus Handbook, London: British Bus Publishing.

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