Energy pipelines waiting to be installed. When the lights went out across Texas last year, a lot of people and businesses lost money. But one group of companies profited: pipelines.
The Texas Legislature must shine a light on this corner of the energy industry and impose law and order on the Wild West of pipelines. We might say: tough luck, that’s how capitalism works. Except in Texas, oil and gas pipelines are not exactly a free market. As theexplained in a recent article, the lack of regulation of intrastate pipelines results in some companies enjoying monopolies in certain regions.
But Texas intrastate pipelines have only safety regulations. Pipeline owners may buy and sell oil and gas, too, and there’s no requirement for transparent pricing. So if, for example, a natural gas-fired power plant gets its fuel from a single pipeline, the plant has little ability to negotiate prices.