STATEMENT I
TESTIMONY
PREPARED DIRECT TESTIMONY
OF
DR. GEORGE R. SCHINK
TABLE OF CONTENTS
Section Page
I. Identity and Qualifications ............................................................................... 1
II. Purpose of Testimony, Description of the Reversed Seaway Pipeline,
and Summary of Conclusions ......................................................................... 3
A. Purpose of Testimony ............................................................................. 3
B. Description of the Reversed Seaway Pipeline......................................... 4
C. Summary of Conclusions ...................................................................... 13
III. The Major Issues Addressed in This Testimony............................................ 14
A. The Services Provided by Crude Oil Pipelines ...................................... 16
B. The U.S. Department of Justices View of the Competitiveness of
Crude Oil Pipelines in the Lower-48 States ........................................... 18
C. The Competitive Implications of the Reversed Seaway Pipeline
Being a New Entrant ............................................................................. 20
D. Discussion of the Competitive Analyses ............................................... 21
1. Statistical and Other Competitive Analyses Performed ................... 21
2. The Competitiveness of the Reversed Seaway Pipelines Gulf
Coast Destination Market................................................................. 27
3. The Competitiveness of the Reversed Seaway Pipelines
Cushing Origin Market ..................................................................... 29
4. Excess Capacity in the Destination and Origin Markets .................. 34
5. New Entry into the Markets Served by Reversed Seaway
Pipeline ............................................................................................ 36
6. Overall Conclusions Based on the Above Results ........................... 36
IV. Structure and Content of The Statements Accompanying Enterprise
Products Application ..................................................................................... 37
I-i
UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
Enterprise Product Partners L.P. ) Docket No. OR12-____-000
And Enbridge Inc. )
PREPARED DIRECT TESTIMONY
OF
DR. GEORGE R. SCHINK
1 I. Identity and Qualifications
2 Q. Please state your name, business address, and business title.
3 A. My name is George R. Schink. I am a Managing Director at Navigant
4 Economics, a subsidiary of Navigant Consulting, which provides economic and
5 financial analysis of legal and business issues to law firms, corporations and
6 government agencies. My business address is 1801 K Street, NW, Suite 500,
7 Washington, D.C. 20006.
8 Q. Please state your education and professional background.
9 A. I was awarded a B.S. in Economics from the University of Wisconsin in Madison
10 in 1964, and a Ph.D. in Economics fr
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