Pipeline Bubble

The report identifies a $1 trillion stranded asset risk associated with 212,000 km of planned oil and gas pipeline expansions. It highlights that gas dominates new developments, with 82.7% of pipelines in development carrying gas. The U.S. and China are leading in capacity and length growth, respectively. The document argues that this expansion is incompatible with net-zero commitments and will lock in significant CO2 emissions, while noting a trend of increasing social and legal opposition to such projects.

• Planned expansions of the global oil and gas transmission pipeline system, totaling 212,000 km, represent a capital expenditure of US$1 trillion and face a high risk of becoming stranded assets due to carbon neutrality commitments by major economies.
• Pipelines currently under construction or in pre-construction are projected to enable a lifetime increase in CO2 emissions of 170 gigatonnes, which is only 15% less than the projected lifetime emissions of the existing global coal plant fleet.
• Natural gas is the dominant fuel for new pipeline development, accounting for 82.7% of all pipelines in development globally and 18 of the 20 longest projects.
• The United States is the world's leading developer of pipelines by capacity, with 19.6 million barrels of oil equivalent per day in development, which the report identifies as a major climate risk.
• China is conducting a massive 32,800-km expansion of its pipeline network, with the newly formed company PipeChina expected to become the world's largest builder of gas pipelines.
• Financial restrictions on midstream infrastructure are significantly lagging behind restrictions on upstream extraction; while 50 major financial institutions restrict tar sands or Arctic extraction, only four have restricted pipelines.
• The Permian Basin has seen US$102.3 billion in debt financing since 2014 for pipelines and export terminals, involving over 100 financial institutions, despite a structural overbuild and declining production levels.
• Pipeline development is increasingly facing a loss of 'social license' due to intense opposition from indigenous groups, landowners, and climate activists, leading to project delays or cancellations.

APA

Browning, J., Aitken, G., Plante, L., & Nace, T. (2021). Pipeline Bubble. Global Energy Monitor. https://globalenergymonitor.org/sites/default/files/migration/reports/Pipeline-Bubble-2021_11.pdf

Chicago

Browning, James, Greig Aitken, Lydia Plante, and Ted Nace. Pipeline Bubble. Global Energy Monitor, 2021. https://globalenergymonitor.org/sites/default/files/migration/reports/Pipeline-Bubble-2021_11.pdf.

Wikipedia

{{cite report |last1=Browning |first1=James |last2=Aitken |first2=Greig |last3=Plante |first3=Lydia |last4=Nace |first4=Ted |title=Pipeline Bubble |publisher=Global Energy Monitor |date=February 2021 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/Pipeline-Bubble-2021_11.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{browning2021pipeline, author = {Browning, James and Aitken, Greig and Plante, Lydia and Nace, Ted}, title = {{Pipeline Bubble}}, institution = {Global Energy Monitor}, year = {2021}, month = feb, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/Pipeline-Bubble-2021_11.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }