# Crude oil and Oil and product pipelines

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

Source page: https://www.materialinsights.org/links/crude-oil-and-oil-and-product-pipelines/

[Crude oil](https://www.materialinsights.org/energy/crude_oil/) (energy) and [Oil and product pipelines](https://www.materialinsights.org/energy/e_oil_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.