Western Pennsylvania pipeline companies fare well despite low prices
Monday, February 2, 2015
Pittsburgh Tribune-Review reports that in Western Pennsylvania, pipeline companies are largely protected from the ongoing slump in oil prices. Funding was finalized for pipeline projects before oil and gas prices took a downturn.
Pipelines can be compared to highway toll booths: they aren’t built unless there’s a need for them. There are over 50 pipeline projects in the works that will begin to transport natural gas from the Marcellus and Utica Shale plays in 2016 and 2017. Pipelines in the Marcellus Shale can take up to 18 months to construct.
Despite low prices, liquid natural gas prices remain profitable and continue to support the energy industry, especially in the Northeast.
Related: Pipeline infrastructure needed for reliable, affordable natural gas in Northeast
Via: Pittsburgh Tribune-Review > Pipeline companies weather downturn in prices of natural gas, oil
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.