Answer to Question #150679 in Macroeconomics for Lucia

Question

Discuss 5 threats faced by the pipeline industry

Answer 1

1. INFRUTRUCTURE SHORTFALL. - most of the recent pipelines have been established in areas where there is existence of oil and gas infrastructure.

2. DIFFICULTY TERRAIN.- due to the long distance the pipelines cover, they face a challenge of different terrain such as weather differences.

3. GEOPOLITICAL ISSUES- in different places where pipelines construction has to take place, they have to adhere to that particular place's political jurisdictions.

4. SUPPLY AND DEMAND RISKS. the pipeline operations are costly and time consuming which also makes it difficulty to control the funds control in and out of the industry.

5. COST RISKS. The infrastructure of pipelines and the operations are so expensive.