Exam 8: Water Carriers and Pipelines

Correct Answer:

Verified

In general the oil companies own the pipelines.The oil companies have seen ownership of pipelines as a way to control markets and exert dominance.Individual oil companies own the largest share of pipeline.This is followed by pipelines owned by joint ventures.The remain,small percentage of pipelines,is own by Railroads,independent oil companies,and other industrial companies.
During WW II the federal government briefly entered the pipeline business when it developed two pipelines to bring crude oil and oil products from the oil fields of the Southwest to the Northeast to ensure an uninterrupted flow of oil.After the war these two pipelines,known as the Big Inch and the Little Inch,were sold to private companies after the war.
In some cases pipelines are joint ventures among two or more companies.This makes sense due to the high capital investment necessary for large-diameter pipelines.

Correct Answer:

Verified

Water transportation uses natural infrastructure as support.Unlike rail,and road,water transportation enjoys a low infrastructure cost (except for canals).Whereas rail needs track,and trucks need road,water is a naturally occurring medium.Rivers,inlands channels,and oceans can be used to transport with very little modification.However water does require ports or other types of load / unload facilities.These can be expensive and congested.
Water transportation has played an important role in the development of the U.S.The early settlers used water as a means to access markets in England and Europe.Additionally water was used to transport goods using inland rivers.Many of our major cities developed around water ports on the coasts.Inland river and Great Lakes transportation provided access to inland settlements with coastal cities.If one looks at a map,it becomes clear that waterways were a prime determinant of population centers and the industrial and commercial concentration,particularly at port cities.