North American Oil & Gas Pipelines

NOV-DEC 2018

North American Oil & Gas Pipelines covers the news shaping the business of oil and gas pipeline construction and maintenance in North America, including pipeline installation methods, integrity management innovations and managerial strategies.

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Page 30 of 71 NOVEMBER/DECEMBER 2 018 | North American Oil & Gas Pipelines 31 must do their part to prevent a 2 degrees Celsius increase in global temperature. For this reason, the oil and gas sector is now considering the possibility of shifts in traditional energy demand, impacting reserve valuation, or regulation-based emission restrictions to remain within that temperature threshold. Conversely, the unprecedented growth in domestic oil and gas production has created an obvious investment opportunity to allocate significant amounts of capital towards pipeline infrastructure buildout. This is in an effort to address the dearth in pipeline takeaway capacity. However, if future oil and gas resources begin to hypothetically remain "in the ground," or if significant costs result from emission restrictions, will spending billions of dollars on pipeline infrastructure assets ever recoup their massive upfront costs? Interrelated with this concern is the fact that pipelines must also consider their emission profiles. Greenhouse gas emissions, such as those from natural gas processing and fugitive emissions, is a major ESG issue for pipeline companies to consider, made extremely evident in the recent growth of climate change and greenhouse emission shareholder resolutions. Investors in oil and gas and pipeline operations are increasingly requesting better disclosure and transparency. Via shareholder resolutions, they are asking companies to lay out long-term strategies showing how ESG factors may affect their ability to generate value. Large asset managers such as BlackRock, Fidelity and Vanguard have augmented their engagement teams and are working with portfolio companies, particularly

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