The U.S. oil and gas industry is investing confidently in infrastructure the near future, according to a recent report on infrastructure investments.
Those investments, of a projected $890 billion over the next 12 years, will pump the national economy with hundreds of thousands of jobs along with the ripple effects of a workforce with more spending money.
“It’s a time of optimism for the industry,” said James Fallon, director of downstream energy consulting at IHS Global Inc., which did the study.
The investments will break down into an especially strong year this year, carrying over from a “banner year” in 2013, and will sustain at annual investments of at least $80 billion in midstream and downstream infrastructure until 2020.
The report noted developing shale formation areas, such as the Bakken in North Dakota and Eagle Ford in Texas, will require more extensive investments in gathering and support facilities because they are not historic production regions.
That issue is ever present in the minds of Bakken industry players as flaring of natural gas, which often occurs because of a lack of a pipeline hookup to transport the gas, becomes a top problem.
Read more: http://www.twincities.com/national/ci_24876303/u-s-oil-gas-industry-invest-890b-infrastructure