Pipelines are the safest mode of transportation to move crude oil from production areas to refineries, where it can be converted into products used to heat our homes, fuel or vehicles and manufacture products, such as plastics, that we rely on everyday. By providing needed transportation of oil and other vital supplies to refineries, pipelines also help sustain the Texas oil industry and thus play a significant role in strengthening the state’s economic future and the nation’s energy
The benefits go beyond this project and the industry itself. Investing in state and local energy contributes to a growing workforce, more revenue driven to local restaurants, stores and small businesses, as well as increased demand for local products and services.
The Wink to Webster Pipeline System, designed to transport more than one million barrels of crude oil per day, supports the growth of the Permian Basin’s oil production and the expansion of Gulf Coast facilities. The ongoing operation of the system, and the oil it transports provides benefits to local communities as well as the nation as a whole.
The investment into developing the Wink to Webster Pipeline project – and the resulting direct and indirect economic activity it stimulated – generated a significant economic boost to the state of Texas. Although it was a singular pipeline project, its direct and indirect impacts touched nearly all sectors of the state economy.
According to an analysis conducted by Texas Tech University’s Center for Energy Commerce, it is estimated the construction of the pipeline system created approximately 3,000 well-paying construction jobs and more than 20,000 indirect jobs, generated roughly $7 billion in total economic output and contributed nearly $219 million in state and local government tax revenues.
The Wink to Webster Pipeline System includes a 642-mile pipeline, two terminals and several pump stations. Approximately 50 people spread across the route directly manage the operations of the system, and many others provide supportive services. The investment in the operations and maintenance of the pipeline system – and the resulting direct and indirect economic activity it stimulates –provides significant benefits to the local and state economies.
Texas Tech University’s Center for Energy Commerce assessed the system’s potential economic impact over the course of its first 40 years of operations. Texas Tech estimated the Wink to Webster Pipeline System will generate $10.6 billion of economic output and contribute $769 million of state and local taxes over the first 40 years of its operations.
Dr. Bradley Ewing, Professor of Energy Commerce and Business Economics at Texas Tech University, led the economic study on the Wink to Webster Pipeline System. The study showed the multiplier effect direct investments have on the economy.
Pipelines are the safest, most reliable and most cost-effective way to transport oil from the production wells to the refineries where the oil is converted to fuels, lubricants, plastic resins, and many types of chemicals that are key ingredients in things we use every day. Makeup, computer chips, medicines, hand sanitizer, fertilizer and even waxes that help preserve our food have their origins in oil. Pipelines not only help make them all possible by delivering the key ingredient but also keep their prices low by keeping transportation costs down.
Transporting oil by pipeline has environmental benefits over other means of transportation, such as truck or rail. According to an American Petroleum Institute analysis, 99.999% of crude oil and petroleum products arrive safely at their destination when transported by pipeline. Pipeline transportation also emits fewer emissions than other modes of transportation. In fact, building pipelines means that fewer trains and trucks need to be used to ship oil. It is estimated that producers would need to employ 10,000 trucks every day to transport the daily capacity of the Wink to Webster Pipeline. Using the Wink to Webster Pipeline means fewer emissions and safer roads with less wear and traffic.
Gasoline & Diesel for Our Cars & Trucks
Without pipelines, we wouldn’t have the gasoline and diesel we put into our cars and trucks. Major pipelines deliver crude oil to refineries in the Gulf Coast and Midwest and gasoline and diesel from those refineries to American cities across the entire country.
Consumer Goods Made from Pipeline-Delivered Feedstocks
American consumers use products made from pipeline-delivered feedstocks. Beverage containers, clothing, carpet, cosmetics and pharmaceuticals all are made with raw material feedstocks delivered at some point by pipeline. U.S. workers drill wells and send petroleum products to pipelines, process raw materials into usable feedstocks, process feed-stocks into base fibers, resins, and materials, and manufacture final products and packaging.
Propane for Farming and Rural Heating
Rural communities depend upon pipelines to heat their homes and farms. Propane for rural home heating is transported to regional distribution centers by pipeline before delivery to homes by truck. Farmers use propane to dry their grain after harvest-reducing crop loss, adding harvest flexibility and improving yields through earlier harvest.
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