Material Insights · Understanding the Material World

Oil and product pipelines: Technology advances

Smart pigs, automatic valves and pipelines that dodge Hormuz

What this tab covers The newest technologies in service or close to adoption, what each improves, and how the main options compare.

The technology is mature. Recent change is about inspecting old pipe, detecting leaks sooner, protecting control systems from hackers and drones, and building bypass lines around maritime chokepoints.

Latest advances

Integrity management and smart pigs in service · 2001 onward (US rule)

In-line tools that map corrosion, cracks and dents, with mandatory reassessment near sensitive areas2

Improves: Finds defects before they fail

Automatic and remote shut-off valves being deployed · 2011 law; rules since

Valves that close on a pressure drop or on command2

Improves: Limits how much oil escapes after a rupture

Control-system cyber security being deployed · 2021 onward

Protecting the computers that run pipelines, after the 2021 Colonial Pipeline ransomware attack disrupted East Coast fuel supply2

Improves: Lowers the risk of a hacker-caused shutdown

Hormuz bypass lines run flat out in service · 2026

Saudi East-West line (7 million b/d) and UAE Habshan-Fujairah line (380 km, about 1.8 million b/d) carried diverted Gulf crude1011

Improves: Keeps some Gulf oil moving when the strait closes

Jebel Dhanna to Fujairah pipeline (UAE) being built · expected 2027

Second UAE line from western Abu Dhabi to the Gulf of Oman coast9

Improves: Adds about 1.5 million b/d of bypass capacity

Comparing the options

OptionEfficiencyCostCapacity or distanceMaturity
Crude or product pipeline3511about 0.3% of the energy per 1,000 km goes on pumping (calculated)about USD 1 per barrel per 500 km (analyst model); US average about USD 5 per barrel (EIA, 2012)1 to 7 million b/d per linemature
Rail tank cars51516472 ton-miles per gallon of dieselUSD 10 to 15 per barrel US (EIA, 2012)about 0.22 million b/d in the US in 2025 (calculated)mature
River barge15675 ton-miles per gallonnot found in sourcesa 15-barge tow equals 216 rail carsmature
Road tanker15151 ton-miles per gallonhighest per barrel-km (not quantified in sources)small loads, short haulmature

Over land, a full pipeline beats rail and trucks on cost and energy once built. Rail and trucks win where volumes are small or uncertain, routes short, or permits unobtainable; US crude-by-rail traffic has fallen as pipelines were added. A US modelling study found electricity transmission costs 20 to 50 times more per MWh than liquid pipelines. The ton-mile figures come from a waterways-industry-commissioned study.

Sources

  1. DOT's Federal Pipeline Safety Program: Background and Issues for Congress (R44201) Congressional Research Service, 2025
  2. Pipelines: the energy economics (analyst model, updated 23 July 2026) Thunder Said Energy, 2026
  3. Rail delivery of US oil and petroleum products continues to increase, but pipelines remain dominant US EIA, Today in Energy, 2012
  4. World Oil Transit Chokepoints (last updated 3 March 2026) US EIA, 2026
  5. How global oil supplies have readjusted to help fill the huge gap left by the Strait of Hormuz shock IEA, 2026
  6. Saudi Arabia restores key pipeline to half its capacity (Bloomberg) Rigzone, 2026
  7. A modal comparison of domestic freight transportation effects on the general public, 2001-2019 (TTI study, press release) National Waterways Foundation (industry-commissioned), 2022
  8. Movements by rail of crude oil, US, annual US EIA, 2026