Crude oil and Oil and product pipelines

Oil and product pipelines needs crude oil; their prices have moved together.

Crude oil (energy) and Oil and product pipelines (energy): 2 relationships.

How they are linked

1. Material need

Physical flow · Direct · Crude oil → Oil and product pipelines

Building or running Oil and product pipelines needs crude oil.

2. Price link: cargo carried

Cost and price · Weak · Both ways

Pipelines earn a fee per barrel moved, so the oil price affects them only through volumes and new projects. The tariff index shows no relation to crude, with monthly moves correlating at 0.02, which is what regulated tariffs should look like.

• 0.02 monthly change correlation
• 0.04 12-month change correlation
• -0.04 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.