86 "Excuse my lack of knowledge but does each well have to run a pipeline to shore or is there some basic network of pipes that have built up over the years which new wells can connect to thus saving many miles of new pipe..........but maybe the capacity is the problem?"
There is a grid of pipelines for USA. Petsec have to pipe it to "Henry Hub" for distribution
Description of the Henry Hub
The Henry Hub is owned and operated by Sabine Pipe Line, LLC, which is a wholly owned subsidiary of ChevronTexaco. The Sabine Pipe Line starts in eastern Texas near Port Arthur, runs through south Louisiana, not far from the Gulf of Mexico, and ends in Vermillion Parish, Louisiana, at the Henry Hub near the town of Erath. The Henry Hub is physically situated at Sabine’s Henry Gas Processing Plant.
The Henry Hub interconnects nine interstate and four intrastate pipelines, including: Acadian, Columbia Gulf, Dow, Equitable (Jefferson Island), Koch Gateway, LRC, Natural Gas Pipe Line, Sea Robin, Southern Natural, Texas Gas, Transco, Trunkline, and Sabine’s mainline. Collectively, these pipelines provide access to markets in the Midwest, Northeast, Southeast, and Gulf Coast regions of the United States. Sabine currently has the ability to transport 1.8 billion cubic feet per day across the Henry Hub. Relative to the total U.S. lower 48 average daily gas consumption of 60.6 billion cubic feet per day in 2000,4 the Henry Hub can handle up to 3.0 percent of average daily gas consumption.
Approximately 49 percent of U.S. wellhead production either occurs near the Henry Hub or passes close to the Henry Hub as it moves to downstream consumption markets. This is based on 2000 production levels reported for the Gulf of Mexico and the onshore Louisiana and Texas regions encircling the Gulf of Mexico.
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