Pipeline Bubble

The report identifies a significant surge in global oil and gas pipeline development, with North America leading the trend. It contends that this expansion is predicated on a 'super cycle' of demand from Asia that is incompatible with IPCC climate goals and threatened by the rise of renewables and competing production in other regions. The authors compare the current situation to the 2011–2016 coal mining crash, warning that high leverage and a loss of 'social license' create a high risk of stranded assets.

• Global oil and gas pipeline construction has accelerated significantly, with the pace of building tripling since 1996. As of the report, 302 new pipelines are under development, which would increase the total number of global pipelines by 29% if completed.
• North America is the primary driver of the global pipeline boom, accounting for over half of the projects under development by number and 34% by length. This includes 64% of all oil pipelines and 48% of all gas pipelines currently in development worldwide.
• The North American expansion is not driven by domestic demand, which is projected to decline for petroleum liquids and grow insufficiently for natural gas between 2020 and 2035. Instead, the boom relies on a 'super cycle' of demand from overseas, particularly in the Asia Pacific region.
• The report estimates that North American oil and gas infrastructure expansion plans exceed $1 trillion, with $232.5 billion specifically allocated to pipelines in pre-construction or construction stages.
• Current infrastructure expansion is incompatible with IPCC pathways to limit global warming to 1.5°C, which require oil use to be reduced by 65% and gas use by 43% by 2050 relative to 2020.
• Investors face significant risks from 'overexpansion' as other regions are projected to increase production more than North America between 2025 and 2040. Specifically, global production outside North America is projected to grow by 31%, compared to 12% within North America.
• The oil and gas sector is experiencing a loss of 'social license,' evidenced by divestment actions from over 1,043 institutions representing more than $8.7 trillion in capital and restrictive measures adopted by governments including France, New Zealand, and Costa Rica.

APA

Nace, T., Plante, L., & Browning, J. (2019). Pipeline Bubble. Global Energy Monitor. https://globalenergymonitor.org/sites/default/files/migration/reports/Pipeline-Bubble-2019_11.pdf

Chicago

Nace, Ted, Lydia Plante, and James Browning. Pipeline Bubble. Global Energy Monitor, 2019. https://globalenergymonitor.org/sites/default/files/migration/reports/Pipeline-Bubble-2019_11.pdf.

Wikipedia

{{cite report |last1=Nace |first1=Ted |last2=Plante |first2=Lydia |last3=Browning |first3=James |title=Pipeline Bubble |publisher=Global Energy Monitor |date=April 2019 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/Pipeline-Bubble-2019_11.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nace2019pipeline, author = {Nace, Ted and Plante, Lydia and Browning, James}, title = {{Pipeline Bubble}}, institution = {Global Energy Monitor}, year = {2019}, month = apr, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/Pipeline-Bubble-2019_11.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }