The results of an analysis of turbulent pipe flow based on a Karhunen-Lo`evedecomposition are presented. The turbulent flow is generated by a directnumerical simulation of the Navier-Stokes equations using a spectral elementalgorithm at a Reynolds number Re_\tau=150. This simulation yields a set ofbasis functions that captures 90% of the energy after 2,453 modes. Theeigenfunctions are categorised into two classes and six subclasses based ontheir wavenumber and coherent vorticity structure. Of the total energy, 81% isin the propagating class, characterised by constant phase speeds; the remainingenergy is found in the non propagating subclasses, the shear and roll modes.The four subclasses of the propagating modes are the wall, lift, asymmetric,and ring modes. The wall modes display coherent vorticity structures near thewall, the lift modes display coherent vorticity structures that lift away fromthe wall, the asymmetric modes break the symmetry about the axis, and the ringmodes display rings of coherent vorticity. Together, the propagating modes forma wave packet, as found from a circular normal speed locus. The energy transfermechanism in the flow is a four step process. The process begins with energybeing transferred from mean flow to the shear modes, then to the roll modes.Energy is then transfer ed from the roll modes to the wall modes, and theneventually to the lift modes. The ring and asymmetric modes act as catalyststhat aid in this four step energy transfer. Physically, this mechanism showshow the energy in the flow starts at the wall and then propagates into theouter layer.