How the federal government ties into the O&G industry.

By now, you have probably already heard about the federal government partially shutting down. This blog is about how exactly is this affecting those of us in the oil and gas industry. We will still continue to go to work and get paid, some people will get laid off. ¬†Upstream companies will continue to drill and frac to produce oil from their wells. As stated in the Forbes magazine, “The oil and natural gas from those hundreds of thousands of wells will continue to mostly flow into pipelines, although a small percentage of the oil will keep getting transported via thousands of trucks or rail cars.” The railroads will keep running, and the nation’s interstate highway system remains open. What happens to the midstream companies? Well, the¬†Pipeline companies will continue receiving and moving all the oil and gas that fuels the dominance of our nation’s economy, just as before. Nothing will change with LNG, “LNG export facilities will continue liquefying some of that natural gas and putting it on ships, which will continue to export that LNG to international markets.” Natural gas will also be continuing its journey to power plants to generate electricity.

As you can see, even though the industry is heavily regulated by the federal government, nothing will happen if part of that government gets shut down.