Pipeline Safety Foresight

In a situation where regulatory changes cause an immediate increase in demand, time is of the essence for a pipeline owner preparing to plan an upgrade.
July, 2011

Recent regulatory requirements aimed at safety are leading to movements in the oil and gas pipeline industry. Due to the recent highly publicized incidents including leaks and explosions, the US Department of Transportation (DOT) met in April 2011 to launch a national pipeline safety initiative to repair and replace the aging infrastructure. Pipeline companies are preparing to increase their own spending beyond past levels to comply with policy. While response to accidents in the form of increased spending is nothing new for individual companies, coupled with the policy changes, it can cause bottlenecks in services and equipment and put significant pressure on costs market wide. For pipeline companies, this could mean a significant change in procurement planning to adjust for tightness in supply.

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