The oil and gas construction industry continues to progress as leaders seek innovative ways to improve distribution, safety and even expand certain sectors. Here are some of the most recent trends impacting this industry.

1. Midstream Growth

There has been significant growth in midstream sector of Oil & Gas. Some geographic areas experiencing the most growth includes – Texas (Midland, Odessa, Pecos) Pennsylvania, Ohio, Southeast US – especially the Florida Panhandle/Gulf of Mexico area. Some major acquisitions and tentative projects in this sector include:

  • UGI Energy Services LLC (UGIES) – Acquired midstream assets from Rockdale Marcellus LLC by its wholly owned subsidiary, UGI Texas Creek LLC (UGI Texas Creek). Enables UGIES to build on its existing midstream asset base.
  • Mustang Gas Products LLC (MGP) – Creating a $65 million capital program aimed at increasing the capacity, efficiency, and reach of its midstream assets. Expected to in-crease system wide gathering capability and increased plant capacity.
  • Magellan Midstream Partners LP – Plans to expand its refined petroleum products pipeline system to handle incremental demand for transportation of gasoline, diesel fuel, and jet fuel to central and North Texas markets.
  • Epic Pipeline – EPIC Pipeline is holding a 45-day open season to obtain commitments on a new pipeline to transport crude oil and condensate from the Permian Ba-sin in West Texas to the Gulf of Mexico in Corpus Christi. The EPIC Pipeline will have multiple receipt points in the western part of the Permian Basin, providing access to producers in the Delaware and Midland basins. The 730-mile EPIC Pipeline will be made of 16-, 20-, 24- and 30-inch pipe with capacity of 440,000 bpd of crude and condensate.

2. Better Distribution

Improvement in oil and gas distribution has also helped the industry. The Pipeline and Hazardous Materials Safety Administration (PHMSA) has introduced several initiatives in an effort to improve underground pipelines and the transportation of energy products. The regulations requiring utility companies to repair, replace, and update pipe systems that deliver gas to homes are impacting the gas distribution market space and requiring more construction workforce. As a result, there is a shortage of qualified gas distribution laborers.

3. Improved Safety

Recently, there has been more focus on safety. A growing number of those specializing in oil and gas financial matters are also investing in safety. Insurers are working to build partnerships with the companies that they cover in an effort to reduce accidents, so that both parties achieve a better financial outcome. Innovative training programs, like computerized simulators for drilling wells, are being used to prepare people and mitigate the risks.

The PHMSA, and other federal agencies, have also been focusing on employee safety in response to a high number of incidents in Texas. In October, an oil barge being pulled by a tugboat caught fire and exploded in the Gulf of Mexico off Texas. Safety agencies are encouraging oil and gas construction leaders to focus on hazardous materials training in an effort to reduce the number of injuries. PHMSA offers free one-day workshops and two-day seminars to anyone who transports hazardous materials.

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