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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.

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Energy Development Impact on Transportation Infrastructure

  3. 3. 2002Well Permits by Year
  4. 4. 20022002-2003Well Permits by Year
  5. 5. Well Permits by Year2002-2004
  6. 6. Well Permits by Year2002-2005
  7. 7. Well Permits by Year2002-2006
  8. 8. Well Permits by Year2002-2007
  9. 9. Well Permits by Year2002-2008
  10. 10. Well Permits by Year2002-2009
  11. 11. Well Permits by Year2002-2010
  12. 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. 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. 14
  15. 15. Typical 1940’s Tractor Trailer15
  16. 16. Modern Energy Production Vehicles16
  17. 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. 18. Increase in Traffic18
  19. 19. Traffic Impacts19
  20. 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. 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. 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. 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. 24. Impact on Infrastructure24Template with layouts
  25. 25. Impact on Roadways25Template with layouts
  26. 26. Impact on Roadways26Template with layouts
  27. 27. Impact on Roadways27Template with layouts
  28. 28. Impact on Bridges28Template with layouts
  29. 29. ROW Issues29Template with layouts
  30. 30. Safety and Environmental Concerns30Template with layouts
  31. 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. 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. 33. QUESTIONS