Pipeline: The Worst Transportation Method of Oil, Except for All the Rest

26 Pages Posted: 16 Sep 2019

See all articles by Phat V. Luong

Phat V. Luong

SUNY Polytechnic Institute, College of Business Management

Date Written: August 10, 2019

Abstract

This paper studies the safety and environmental impacts of different crude oil transportation methods. The frequency, spillage volume, and environmental damage costs of pipeline accidents seem to be significantly higher than of trains and trucks. However, after adjusting for the distance and volume of oil transported by each method, pipeline has the lowest number of accidents, the least amount of oil discharged and the smallest environmental damage and clean-up cost per ton-mile. Moreover, lacking oil transmission pipeline hinders the producer's ability to collect associated gas. Consequently, the gas is flared or vented. The Granger causality between the excess takeaway capacity of oil pipeline and natural gas flaring confirms the impact of having inadequate transmission pipeline capacity.

Keywords: Pipeline, oil spill, gas flaring

JEL Classification: G12, G14, G18

Suggested Citation

Luong, Phat V., Pipeline: The Worst Transportation Method of Oil, Except for All the Rest (August 10, 2019). Available at SSRN: https://ssrn.com/abstract=3449551 or http://dx.doi.org/10.2139/ssrn.3449551

Phat V. Luong (Contact Author)

SUNY Polytechnic Institute, College of Business Management ( email )

100 Seymour Rd
Donovan 1101
Utica, NY 13502
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
99
Abstract Views
465
rank
339,947
PlumX Metrics