North American Oil & Gas Pipelines

JUN 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 17 of 43

AN INDUSTRY ON THE RISE AN INDUSTRY ON THE RISE It 's no secret that the oil and gas pipeline sec- tor has seen strong growth over the last year, after a period of downturn. Exploration and production (E&P) in North America is nearing record highs, and higher global oil prices have led to capital expenditure (CAPEX) increases among infrastructure owners and operators. However, the pipeline industry does face some chal- lenges, related to workforce shortages, political uncer- tainty and third-party opposition. To provide a holistic overview of the these chal- lenges and the impact that the administrations of U.S. President Donald Trump and Canadian Prime Minister Justin Trudeau have on the pipeline sector, I spoke to Andrew Craig, land manager of U.S. projects at Trans- Canada; Mike Dearing, vice president of North Amer- ica sales for PipeLine Machinery International; Robert Osborn, senior vice president of pipeline operations at Michels Pipeline Construction; Rob Riess, 2018 presi- dent of the Pipe Line Contractors Association (PLCA) and regional vice president of the pipeline division at Henkels & McCoy; and Neil Waugh, senior vice presi- dent at NPL Canada Ltd. What is the status of the oil and gas pipeline industry in North America? Is it on the rise, declining o at? Craig: Mid-2018 we find the industry in a strong position, with now established technologies al- lowing for the economic development of new resource in areas not previously (or adequately) served by pipeline transmission, combined with stable and increasing energy demand. Dearing: It's still on the rise for the next couple of years, especially if the jobs antici- pated in Canada are approved. Quite a few projects also are starting in the Northeast United States and Texas, in the Permian Basin, approximately for the third or fourth quarter this year and into 2019. Osborn: The gas and oil industry from a construction perspective is building at an all-time high. Buildout of the shale plays continue, along with replacement of other critical infrastructure. I see new pipeline buildouts continuing for a few more years before starting to decline. I also see a continuation of the current buildout on our current infrastructure remaining strong. The U.S. rig count is forecast to in- crease steadily throughout 2018. With the oil and gas industry capital spending for E&P in the By Bradley Kramer

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