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Energy Development Impact on Transportation Infrastructure

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Energy Development Impact on Transportation Infrastructure presented by TxDOT at Ports-to-Plains Alliance Annual Meeting in Washington DC on April 26, 2013.

Energy Development Impact on Transportation Infrastructure presented by TxDOT at Ports-to-Plains Alliance Annual Meeting in Washington DC on April 26, 2013.

Published in: Business, Economy & Finance

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  • 1. PORTS-TO PLAINS4TH ANNUAL ENERGYCONFERENCEScott HaywoodChief of Staff
  • 2. ENERGYDEVELOPMENTIMPACT ONTRANSPORTATIONINFRASTRUCTUREApril 26th, 2013
  • 3. 2002Well Permits by Year
  • 4. 20022002-2003Well Permits by Year
  • 5. Well Permits by Year2002-2004
  • 6. Well Permits by Year2002-2005
  • 7. Well Permits by Year2002-2006
  • 8. Well Permits by Year2002-2007
  • 9. Well Permits by Year2002-2008
  • 10. Well Permits by Year2002-2009
  • 11. Well Permits by Year2002-2010
  • 12. Oil and Gas Development in Texas Texas recently had 839 drilling rigs operating — nearly halfof all rigs in the U.S. and 22.7 percent of rigs worldwide. Early estimates for the Cline Shale development (West-Central Texas) put the estimated recoverable reserves at 30billion barrels of oil. By comparison, the U.S. Geological Survey estimates theEagle Ford Shale (South Texas) holds up to 7 billion to 10billion in recoverable reserves, while the Bakken Shale(North Dakota) could hold as much as 4.3 billion barrels ofrecoverable oil.12
  • 13. Wind DevelopmentTexas has 12,200 MW of wind generation,more than double any other state.More than +1,500 MW of capacity in windinstallations just in 2012.Most wind farms are located in areasoverlapping oil and gas development.13
  • 14. 14
  • 15. Typical 1940’s Tractor Trailer15
  • 16. Modern Energy Production Vehicles16
  • 17. Loaded Trucks Per Gas Well1,184 loaded trucks to bring one gas well intoProduction, plus353 loaded trucks per year to maintain, plus997 loaded trucks every 5 Years to re-frac thewellThis is equivalent to roughly 8 Million carsto drill a well, plus an additional 2 Millioncars per year to maintain the well17
  • 18. Increase in Traffic18
  • 19. Traffic Impacts19
  • 20. Impact to the SystemResearch has determined that the service lifeon IH, US, SH, and Farm to Market highwaysis reduced:Due to truck traffic associated with naturalgas well operations alone between:•1% and 16% for rig movements•1% and 34% for the saltwater disposal traffic•4% and 53% for construction traffic•Overall Impact (Average) 30%20
  • 21. Impact to the SystemDue to truck traffic associated with crude oilwell operations alone between:•1% and 3% for construction traffic•2% and 16% for the production traffic•Overall impact (Average) 16%21
  • 22. Estimated Annual Impacts Original Estimate for FM System: $890 million–Additional 20% for heavier trucks–Additional 15% for higher road material prices–Very conservative: well over $1 billion annually Extrapolating to local roads–Similar number of lane miles–Lower original design requirements–Estimated impacts well over $1 billion annually22Template with layouts
  • 23. Proactive/Reactive Dimmit County (South Texas)– Rehabilitation Project on FM 2688 (12.61 Miles) Reactive vs. Proactive– Reactive: roads are fixed or maintained after damage has occurred.– Proactive: maintains roads before damage is done to preserve thequality of the road.Additional Wells Reactive Cost Proactive Cost0 $13,756,000 $2,004,5361 $19,271,448 $2,004,5365 $23,303,952 $4,654,14910 $27,452,880 $5,723,55323Template with layouts
  • 24. Impact on Infrastructure24Template with layouts
  • 25. Impact on Roadways25Template with layouts
  • 26. Impact on Roadways26Template with layouts
  • 27. Impact on Roadways27Template with layouts
  • 28. Impact on Bridges28Template with layouts
  • 29. ROW Issues29Template with layouts
  • 30. Safety and Environmental Concerns30Template with layouts
  • 31. 2012 Crash DataEagle Ford Shale (23 Counties): 2012 = 248 2011 = 177 40% increase in fatalitiesPermian Basin (58 Counties): 2012 = 320 2011 = 252 27% increase in fatalities31Template with layoutsLeading causes of crashes according to law enforcement werefailure to control speed and driver inattention.
  • 32. Possible State Legislation Tax Increment Reinvestment Zone/Mobility Authority forCounties Dedicate Oil and Gas Severance Tax Revenues toTransportation Greater Enforcement of Oversize/Overweight Trucks One-time appropriation from Economic Stabilization Fund32Template with layouts
  • 33. QUESTIONS