as economy sputters, oil & gas pipeline markets roll onfrom 2007. iploca executive secretary...

36
As Economy Sputters, Oil & Gas Pipeline Markets Roll On Also Inside: The Energy Market Boosts HDD Work The ABCs of Pipeline Corrosion What You Need to Know About Pigging Tools A Supplement to Trenchless Technology napipelines.com | December 2008

Upload: others

Post on 22-Jan-2021

7 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

As Economy Sputters,

Oil & Gas Pipeline Markets Roll On

Also Inside:The Energy Market Boosts HDD WorkThe ABCs of Pipeline CorrosionWhat You Need to Know About Pigging Tools

A Supplement to Trenchless Technology

napipelines.com | December 2008

Page 2: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

Circle 100 on Reader Service Card

Page 3: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

trenchlessonline.com DECEMBER 2008 | North American Pipelines 3

Bringing You the Pipeline Market

Welcome to the premiere issue of North American Pipe-lines. Benjamin Media, publisher of Trenchless Technology and Utility Contractor, is excited to bring you this publica-tion covering the burgeoning North American oil and gas pipeline market.

In this issue you will find insights from the leaders in the pipeline market as well as the latest projects, news, equipment innovations and more. We offer a breakdown of the three major North American markets – the United States, Canada and Mexico – as well as case histories to highlight the current state of the market and what the future may hold.

As anyone familiar with this marketplace will attest, we are seeing unprece-dented growth – the result of historical underinvestment and the need to access new supply and meet increasing demand. This nexus has spurred pipeline devel-opment from the Rockies to the Northeast Corridor, from the Gulf Coast to the oil sands of Alberta, and all places in between.

In fact, more than 20,000 miles of new natural gas transmission pipeline capa-ble of carrying about 100 billion cubic feet per day were installed in the last decade in the United States alone, with many more miles of pipeline being planned. As one contractor told me while compiling information for North American Pipelines, “There is more work than we can handle.”

Not only are more pipelines being built, but they are being built even bigger. Where 16- and 24-in. pipelines were once the norm, 42-in. pipes are being put in the ground. The increased demands are driving innovative equipment advances such as tooling, control systems, large pipelayers and horizontal directional drill-ing rigs capable of pulling 1,000,000 lbs and more.

With all the enthusiasm in the pipeline market for most of 2008, the last two months of the year raises questions as we enter 2009: 1)What effect will falling oil prices have on the demand for natural gas?, and 2) How will the shaky credit market affect the pipeline construction business?

While it will take time for answers to become clear, we can look to what ap-pears to be a healthy market for the short term. “There is still work out there to last through 2012,” one contractor said. “We’re unsure how the market will play out in 2009, but we haven’t seen a slowdown yet.”

With an increased push for energy independence and clean-burning fuels, the long-term outlook for the North American pipeline market remains strong.

As with any Benjamin Media publication, we welcome the input of our readers Please feel free to drop us a line to let us know your thoughts. You can reach me at [email protected].

Regards,

James W. RushEditor

Publisher Bernard P. Krzys

Associate Publisher Robert D. Krzys

Editor James W. Rush

Managing Editor Sharon M. BuenoAssistant Editors

Contributing Staff Editors

Creative Director W. M. Conley

Senior Graphic Designer Edward A. Haney

Graphic Designers

Elizabeth C. StullMarketing Manager

Kelly DadichRegional Sales Manager

Dan SiskoCirculation Manager

Web & Interactive Manager

Editorial Advisory BoardChairman

Alex Buehler

Missouri

Dr. Samuel Ariaratnam

Boston Water and Sewer Commission

Editorial & Advertising Offices

www.trenchlessonline.com

Reprints

Editor’s Message

2009 International No-Dig ShowMarch 29 – April 3, 2009Sheraton Centre Toronto

Toronto, Canadawww.nodigshow.com

TM

Page 4: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

4 North American Pipelines | DECEMBER 2008 trenchlessonline.com

10 U.S. Overview As the economy sputters, the oil and gas markets roll on.

By Sharon M. Bueno

14 Monitoring the Flow A look at the Canadian oil and gas pipeline markets. By Pam Stask

18 Mexican Overview Oil and natural gas veins transport a nation’s life blood.

By Greg Thompson

20 The ABCs of Pipeline Corrosion

Proper engineering and maintenance enables pipeline operators to prevent corrosion and preserve vital assets. By Ted Huck

23 Fortifying Trenches: Ensuring Safe Trenches and Best Practices

When working in the trenches, safety is always important, and trench shoring and shielding is the crucial ingredient for safe trench operations.

24 Energy Market Turns to HDD Pipeline project owners and contractors have turned to trenchless

methods, specifically horizontal directional drilling. By James W. Rush

26 High-Performance Pigging Thorough pipeline cleaning with pigging tools helps prevent

corrosion. By Eric N. Freeman

29 Work Continues on the Keystone Pipeline In 2010, the pipeline will be extended to Cushing, Okla. By Jim Murphy

DEPARTMENTS6 News

30 Product Showcase

33 Calendar

34 Directory of HDD Rig Manufacturers and Contractors

COLUMNS

3 Publisher’s Message

MARKETPLACE

33 Index of Advertisers

33 Business Cards

December 2008TM

TRENCHLESS TECHNOLOGY (ISSN 1064-4156) is published monthly, with an annual Directory in June Copyright 2008, Benjamin Media, Inc., P.O. Box 190, Peninsula, OH 44264. All rights reserved. No part of this publication may be reproduced or transmitted by any means without written permission from the publisher. One-year subscription rates: complimentary in the United States and Canada, and $99.00 in other foreign countries. Single copy rate: $10.00. Subscriptions and classified advertising should be addressed to the Peninsula office. Periodical Postage Paid at Peninsula, Ohio and at additional mailing offices. POSTMASTER: send address changes to TRENCHLESS TECHNOLOGY, P.O. Box 190, Peninsula, OH 44264 USA.

Canadian Subscriptions: Canada Post Agreement Number 40040393. Send change of address information and blocks of undeliverable copies to P.O. Box 1051, Fort Erie, ON L2A 6C7.

Page 5: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

Circle 101 on Reader Service Card

Page 6: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

The 42 annual International Pipeline and Offshore Contractors Convention (IPLOCA) was held Sept. 28-Oct. 3 in Athens at the Intercontinental Hotel. There were more than 600 attendees at the event.

2007-2008 IPLOCA president John Reed, Heerema Marine Contractors Nederland BV, chaired the meet-ing. In the opening general meeting, Reed stated that

overall there were 77,000 miles of pipeline planned or under construction for 2008 – a 12 percent increase from 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention.

The IPLOCA Convention is always an excellent blend of business and cultural activities. There were a number of dis-

tinguished speakers during the general meetings. The topics included “The Suc-cess of the Pipeline Industry depends on Collaboration,” presented by George Tenley, president, Pipeline Resource Council Interna-tional, and “Toward a Responsible Energy Future,” presented by Knud Petersen, Global Manager Pipelines & Offshore

Technology, Shell Global Solutions International BV. In the past year, IPLOCA has added four contractor

members and eight associate members. Contractor mem-bers now total 110 and associates 121.

At the convention, two significant awards were pre-sented. The Health and Safety Award sponsored by Chevron was presented to Bonnati S.p.A. regarding the Montalbano Pipeline Project. The Enviromental Award sponsored by Shell went to Spiecapag for its winning entry “Effective Waste Management and Waste Reduc-tion in Yemen.”

Cultural activities included numerous archeological sites including the Acropolis and the Parthenon in Ath-ens, visits to Corinth and Mycenae, and excursions to the islands of Poros, Hydra and Aegina.

A major function at each year’s convention is the elec-tion of new officers. Bruno de la Roussière, Entrepose Con-tracting, assumed the position of president for 2008-2009. Special awards were given to outgoing president John Reed and his wife, Deidre, at the closing banquet. The 2009 con-vention will be held Sept. 14-18 in San Francisco.

6 North American Pipelines | DECEMBER 2008 trenchlessonline.com

North America News

IPLOCA Meets in Greece

Enjoying the IPLOCA Banquet are (from left) Glenda Shipka, Triple Random Inc., Kevin Waschuk, Waschuk Pipeline Construction,

and Mary Lou Brown, PLCA-CN.

Otis Eastern Service’s Tony Deusenbery and his wife Holly visit a Greek Orthodox Church.

Outgoing IPLOCA president Peter Reed addresses the convention attendees.

Many attendees took the opportunity to visit Corinth.

Page 7: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

TransCanada Advances Pathfinder Pipeline Project with Acquisition

TransCanada Corporation (TSX, NYSE: TRP) (TransCana-da) recently announced it has acquired Bison Pipeline LLC from Northern Border Pipeline Co.

The assets of Bison Pipeline LLC include executed prec-edent agreements as well as regulatory, environmental and engineering work completed to date on the Bison Pipeline Project (Bison). Bison is a proposed 289-mile pipeline from the Powder River Basin in Wyoming to the Northern Bor-der Pipeline system in Morton County, N.D. TransCanada is also developing the Pathfinder Pipeline Project, a 625-mile, interstate natural gas pipeline that would extend from Meeker, Colo., to Morton County, N.D., where it would in-terconnect with the Northern Border Pipeline system.

With this acquisition, TransCanada will provide shippers on the proposed Bison Pipeline the opportunity to transport their production on the larger Pathfinder Project. Pathfind-er has received significant shipping commitments that are subject to certain conditions and TransCanada is currently working with Pathfinder shippers to satisfy these condi-tions. If these conditions cannot be met in a timely manner, then TransCanada, as part of the purchase arrangement with Northern Border, has agreed, subject to certain conditions, that it will proceed with the smaller Bison Project.

“The work completed to date on the Bison Project com-plements the significant advances we have made on our Pathfinder Pipeline Project,” says Hal Kvisle, president and chief executive officer of TransCanada. “This acquisition ensures that, either via Pathfinder or Bison, TransCanada will provide transportation services for U.S. Rockies produc-ers who are interested in moving their growing natural gas production to U.S. Midwest markets.”

Rice Establishes National Corrosion CenterRice University has established a National Corrosion

Center where researchers will develop better technology for preventing corrosion — a problem that is estimated to cost $276 billion a year in the United States, according a story on Nanotechwire.com.

To develop the center, Rice is working closely with NACE International, an association of more than 20,000 scien-tists, engineers and technicians around the world who are involved in virtually every industry and aspect of corrosion prevention and control.

Rice will collaborate with others in academia and indus-try to create corrosion-control strategies that can be applied to the nation’s infrastructure.

“Anything made with steel corrodes, so our system of highways and bridges, our pipelines for transporting water, oil and gas, our buildings, our aviation and transportation industries are all at risk,” said Emil Peña, executive director of the new center and also of Rice’s Energy and Environ-mental Systems Institute (EESI). “We will focus on corro-sion prevention and mitigation technologies that not only have the potential to improve the reliability and safety of just about everything made of steel, but also can save bil-lions of dollars in repairs and rebuilding. This research even has biomedical implications.”

Corrosion is a “silent destroyer of our nation’s critical infrastructure,” said NACE International director of public affairs Cliff Johnson. “Because it is a slow process that usu-ally occurs out of sight, it is not uncommon for corrosion mitigation measures to be delayed or never implemented. Unfortunately, when this occurs, the problem grows dra-

matically and shortens the useful life of the asset, similar to what we saw with recent bridge collapses in the United States or the pipeline failure in Carlsbad, New Mexico, in 2000.”

The National Corrosion Center (NCC) intends to change the discussion on corrosion from being an afterthought to being part of the upfront decision making about an asset and its projected life, while also advancing technological solutions. “We know that you can more than double the life of an asset if corrosion prevention and mitigation solu-tions are implemented,” Johnson said.

Researchers from Rice’s George R. Brown School of Engi-neering and Wiess School of Natural Sciences and various institutes at Rice will be involved with the NCC, as will ex-perts from other universities.

Given Rice’s location in the oil capital of the United States, NCC researchers will focus much of their initial work on the oil and gas industry. A 2001 study by the Federal Highway Administration found that corrosion costs the oil and gas industry $13.4 billion per year.

The NCC is seeking government and private funding. Be-cause corrosion is not a problem exclusive to the United States, the center is open to collaborations and support from international institutions and businesses. Panama, for example, has already signed a memorandum of understand-ing through its technology institute, the City of Knowledge, which will include major construction projects.

Pipeline Companies Deliver Hefty Profit Gains

Williams Cos., Spectra Energy Corp. and El Paso Corp., three of the largest U.S. pipeline companies, on Nov. 6 post-ed bigger profit gains than analysts estimated because of rallies in natural-gas and gas-liquids prices that have since fizzled, according to the Bloomberg News.

Third-quarter net income at Williams jumped 85 percent to $366 million, or 62 cents a share, according to a state-ment by the Tulsa, Okla.-based company. Houston-based Spectra reported a 26 percent gain to $296 million, or 48 cents a share. El Paso, also based in Houston, said its profit almost tripled to $445 million, or 58 cents a share.

Williams and El Paso, which also produce gas, benefited as benchmark prices for the heating and power-plant fuel climbed 44 percent from a year earlier.

Spectra posted a 71 percent gain in profit from a gas-pro-cessing joint venture as gas-liquids prices rose.

Gas shipments also increased because of expansion projects.“The U.S. has been a very big investment vehicle for

natural gas transmission,” said Nathan Judge, an analyst at Atlantic Equities in London who rates Spectra and El Paso shares at “outperform” and doesn’t own any. “This is the best time ever for pipelines.”

U.S. natural gas futures have fallen 48 percent since the end of June.

ConocoPhillips to Replace 4 Miles of Kuparuk Pipe

Conoco Phillips plans to replace more than four miles of pipe in the Kuparuk River oil field next year so the compa-ny can monitor corrosion better, according to a September article with the Petroleum News.

The replacement will allow Conoco, which runs the field for all the oil companies there, to run pigging devices through the pipe. Pigs are mechanical devices fed through a pipeline for different purposes. Smart pigs measure damage

trenchlessonline.com DECEMBER 2008 | North American Pipelines 7

Page 8: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

along the walls of a pipeline, while maintenance pigs clean out deposits that could lead to corrosion.

The shortest of the major pipelines on the North Slope, the Kuparuk Pipeline Extension runs about nine miles be-tween two big plants — called central processing facilities — that sort the oil, gas and water that come up wells to-gether.

The Kuparuk pipes at issue came online in 1981 as pro-duction began at Kuparuk, the North Slope’s second larg-est oil field. The largest, Prudhoe Bay, started production four years earlier and has had serious leaks from corroded pipelines. A major project is nearing completion to replace some pipes within Prudhoe.

During its first 25 years in operation, the Kuparuk Pipe-line Extension moved more than 73 million barrels of sale-quality oil into the gathering facilities at Prudhoe Bay in preparation for sending it down the trans-Alaska pipeline to tankers in Valdez. Although the small pipeline has been a workhorse, that much oil naturally takes its toll.

Currently, Conoco can’t pig the above-ground pipeline because of its odd design: About half of the line is 12 in. in diameter, while the rest is 18 in. in diameter. As a result, the field operator can only check the line externally, using ultrasound equipment.

The upgrades will enlarge the narrower section, making the entire pipeline 18 inches in diameter. The old pipe will be cleaned and recycled.

With the replacement effort, Conoco plans to build pig launching and receiving terminals at either end of the pipe-line. The terminals will be built in basins used for collecting snow during winter cleanups and meltwater during spring breakup.

The company said it expects to finish the entire project within two years.

Corrosion became a public issue in March 2006, after sediment build-up in pipelines at the BP-operated Prudhoe caused the largest oil spill in North Slope history.

Following the spill, Conoco voluntarily evaluated its pipelines at Kuparuk under a program devised by the U.S. Department of Transportation. The federal agency came to Alaska in November 2006 to inspect Conoco’s North Slope pipelines.

But the program requires Conoco to conduct further in-spections. The smart pigs will allow the company to inspect the pipeline to DOT standards by the agency’s deadline in May 2011. Conoco is the main lease holder at Kuparuk. Other oil companies with interest there include BP, Chev-ron and Exxon Mobil.

REX Update: Construction on Natural Gas Pipeline Moves Forward

Rockies Express Pipeline, a development of Kinder Mor-gan Energy Partners L.P., Sempra Pipelines & Storage, and ConocoPhillips, initiated federal review of the eastern expansion of its natural gas pipeline in June 2006. With two segments stretching from Colorado to Missouri now finished, this eastern expansion will span from Missouri through Indiana to the eastern edge of Ohio, according to an Oct. 15 article on REXpipeline.com.

Once complete, the 1,679-mile pipeline is expected to transport 1.8 billion cubic feet of natural gas per day to the Midwest and eastern United States.

“It’s a major project by any pipeline construction stan-dard,” said Dean Eaton, Kinder Morgan representative, in the update.

The 638 miles comprising the eastern portion of the REX project includes a 17.3-mile pass through Hendricks Coun-ty. It starts just north of U.S. 36 on the western side and snakes south past Clayton before entering Morgan County west of Mooresville.

Construction in Indiana began in August after REX cleared its regulatory review with the Federal Energy Regulatory Commission and state and local agencies. On Tuesday the consortium offered a construction tour of the pipeline in Putnam County. The project is being managed from a site in Cloverdale near the Interstate 70 exit.

Workers could be seen pulling sections of the pipe to-gether using an automated system that internally welded the pieces together. Then a welding shack is placed on each link, where workers go inside and weld the pipe on its out-side.

Eaton says employees are averaging about 70 welds per day since construction started. About 400 workers are being used on each section of the REX east project, with six sec-tions total in both Indiana and Illinois.

The article also said that pipe also is being assembled in Hendricks County currently, while the rest of the path through Indiana is being graded and cleared. REX had to secure 103 pieces of land in Hendricks for the project. Last spring the company agreed to agricultural mitigation with FERC and the Indiana Farm Bureau.

Among the provisions reached are that the pipeline must be buried a minimum of five feet where it crosses agricultur-al fields. REX also must repair for life any damaged drainage tiles. Eminent domain powers are being restricted too. REX can’t use it to increase the pipeline’s size for future needs or acquire any right of way to transport anything other than natural gas.

REX also must establish a five-year monitoring program following the pipeline’s completion to address any agricul-tural problems stemming from the construction.

Allen Fore, REX public affairs manager, said in the update that he expects much of the REX East construction to be complete by the end of the year. Restoration of the land will likely last into 2009. Officials hope to have the pipeline op-erational to Putnam County by April 1 and all of it online by November of next year.

While plans had it extending to eastern Ohio only, REX is now considering expanding it to New Jersey. With U.S. demand for natural gas predicted to increase more than 50 percent by 2020, this pipeline, at a privately-financed cost of more than $5 billion, is expected to be a major advance-ment in U.S. energy infrastructure.

For more information on the REX Pipeline, visit www.rex-pipeline.com.

Alyeska Chooses Energy Solutions International Software for Trans Alaska Pipeline

Energy Solutions International Inc. (ESI), a world-leading supplier of software solutions that optimize operational and commercial performance of oil and gas pipelines, an-nounced that its PipelineManager modeling and leak de-tection application has been selected by Alyeska Pipeline Service Co. to serve as the foundation for leak detection and slack flow monitoring on the Trans Alaska Pipeline System (TAPS), one of the largest and most complex pipeline sys-tems in the world, according to Businesswire.com.

TAPS’ complexity stems from the severe elevation chang-es over the 800-mile pipeline, which runs from the North

8 North American Pipelines | DECEMBER 2008 trenchlessonline.com

Page 9: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

trenchlessonline.com DECEMBER 2008 | North American Pipelines 9

“They haven’t actually said what it is they’d like us to do yet,” he said.

The scope of the study also has not been determined.

FERC Seeks to Improve Market Transparency

The Federal Energy Regulatory Commission (FERC) in November issued a final rule requiring the posting of im-portant market information that will improve price trans-parency in the interstate natural gas markets by providing information about the supply and demand fundamentals that underlie those markets.

Also, FERC issued a Notice of Inquiry (NOI) seeking com-ment on whether to require certain intrastate pipelines to post details of their transactions with individual shippers in a manner comparable to the reporting requirements for interstate pipelines.

“Through these latest initiatives, FERC continues to make progress towards greater transparency and improved com-petition in wholesale natural gas markets,” FERC Chairman Joseph T. Kelliher said. “As interstate and intrastate pipelines operate seamlessly, often within the same markets, the post-ing requirements have become necessary because interstate postings alone cannot determine market fundamentals.”

The final rule (RM08-2-000) establishes new posting re-quirements under section 23 of the Natural Gas Act (NGA). It requires interstate and certain major non-interstate pipelines to post on their publicly accessible Web sites daily operation-al information, such as scheduled volume information and design capacity for certain receipt and delivery points.

Circle 106 on Reader Service Card

Slope to Valdez and crosses three mountain ranges and more than 800 rivers and streams. PipelineManager will be deployed to confirm the integrity and accurately detect both the size and location of any leaks along TAPS, ensuring compliance with government regulations.

“Energy Solutions International is one of the few com-panies in the world that possesses the proven technology, domain expertise and customer service to tackle a project of this complexity,” said Dr. Jo Webber, ESI’s Chief Executive Officer. “We are delighted to be working with Alyeska to de-ploy our robust leak detection solution on one of the most highly regulated pipelines in the world.”

With more than 150 installations worldwide, Pipeline-Manager provides accurate leak detection and location, batch/product/composition tracking, capacity determina-tion, throughput optimization, fuel cost minimization, automated operational warnings and survival time, what-if analysis and operator training.

Alyeska Pipeline Service Co. designed, constructed and operates and maintains the Trans Alaska Pipeline System, which is owned by a consortium of companies. Head-quartered in Anchorage, Alyeska maintains operations in Fairbanks and Valdez and employs almost 800 people statewide, with 1000 more employed by independent con-tractors working for the company. For information, visit www.alyeska-pipe.com.

Study Looks at Alaska Petroleum Infrastructure

A study of risks posed by Alaska’s aging oil and gas in-frastructure will begin this fall, according to the Fort Mills Times.

The study, authorized by the Alaska Legislature, involves a lengthy review and ranking of oil and gas-related risk along the 800-mile trans-Alaska oil pipeline, the Valdez tanker port, and North Slope and Cook Inlet fields. The study will not be finished until early 2010, the Oct. 6 article said.

The study was an outgrowth of spills, leaks and corrosion discovered on the North Slope in recent years. The legisla-ture approved $5 million for the study.

“Some of the things they should have done already,” said Rep. David Guttenberg, D-Fairbanks, who has worked con-struction jobs on the North Slope, in the article.

Accidents on the Slope keep happening, he said, noting a high-pressure natural gas pipeline at Prudhoe Bay that blew up last week. The incident sent a pipe segment onto tundra and led to a shutdown at two oil production pads.

The article said leaks from two corroded oil pipes in 2006 caused half of Prudhoe Bay to shut down for weeks, tempo-rarily slowing oil revenue to the state.

Prudhoe Bay oil field operator BP is replacing 16 miles worth of corroded pipe at a cost of $260 million. Prudhoe Bay, the North Slope’s oldest field, was built more than 30 years ago.

“No one has really taken a comprehensive look at the whole system before,” said Ira Rosen, the Alaska Depart-ment of Environmental Conservation manager running the project.

The study group includes two consulting firms, Doyon Emerald of Anchorage and Houston-based ABS Consult-ing. The group will look at paperwork and it’s unclear how much time it will spend in the field inspecting oil and gas equipment, Rosen said.

BP has a long history of cooperating with state agencies, said spokesman Steve Rinehart, but its participation in the study has not been determined.

DECEMBER 2008 | North American Pipelines 9

Page 10: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

10 North American Pipelines | DECEMBER 2008 trenchlessonline.com

U.S. Overview

As the economy in the United States continues its downward spiral, with companies across the country

laying off thousands of workers and bank credit freezing up, there’s one market that continues to thrive through this economic uncertainty and is expected to continue to do so at least through 2009. Demand for energy, coupled with rising gas prices (until recent months), has kept this market above of the economic fray for the time being.

As U.S. automakers teeter on the brink of insolvency and wrestle with Congress to secure a financial lifeboat, the energy pipeline market remains afloat in calmer financial waters. Projects on the books for the next few years have al-ready secured financial backing and are a go, and consumer demand remains strong.

The oil and gas pipeline market picked up speed and strength over the last several years, with thousands of miles of new pipelines installed throughout the United States, many transporting oil and gas from Canada. Energy proj-ects went into full throttle, keeping energy owners, vendors and contractors hopping to meet consumers’ needs.

Industry professionals say that 2008 followed that trend, with an even greater increase in activity over 2007 (more

than 5,600 miles of pipeline were built in 2007). 2009 is expected to be strong as well, albeit with a slight drop-off, they say.

There are numerous pipeline construction projects of varying sizes under way in the United States and Canada, covering the transmission and distribution markets, with several significant ones due to complete in the coming months; several more major projects are geared to begin construction in 2009 and many others on track for 2010 and 2011, provided the money remains secured.

U.S. projects are spread out across the country from Alas-ka to New York, including the Rockies Express Pipeline, a 1,679-mile natural gas pipeline that stretches from Colora-do to Ohio, and the Keystone Pipeline Project, a 2,148-mile line that’s being installed to transport crude oil from Illinois to Oklahoma (down from Canada). These projects are keep-ing U.S. contractors busy, with energy owners pumping bil-lions of dollars into these projects to expand the country’s oil and natural gas lines.

“It’s been a very strong market for pipeline construction in 2008 and what’s different than in past years is that it hasn’t been limited to one particular region. It seems to be

As the Economy Struggles, the Oil & Gas Markets Roll On

By Sharon M. Bueno

Page 11: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

pretty much across the United States that has been strong, particularly in mainline construction,” observes Tony De-usenbery, vice president of construction for Otis Eastern Service, a leading pipeline construction company, based in Wellsville, N.Y. Deusenbery also serves as president of the Distribution Contractors Association (DCA).

“As for 2009, [DCA] believes that there is still going to be significant pipeline activity,” Deusenbery notes. “But I think it’s going to become more regionalized as it has been in the past, with a fair amount of work in the Midwest and West.”

Some of the most active areas for new natural gas pipeline construction have been in the Mid-Continent area, linking the gas supply to the Gulf Coast supply hubs, which in turn feed the major truckline pipelines serving consumer mar-kets in the East. Another active area has been the Rocky Mountain West and the construction of pipeline capacity to bring natural gas from tight sand, shale and coal bed methane fields to markets in the Midwest and East that historically haven’t been served by Rocky Mountain pro-duction, says Donald F. Santa, president of the Interstate Natural Gas Association of America (INGAA).

“While liquefied natural gas has not yet fulfilled as sig-nificant a role in North American gas supply as many an-ticipated a few short years ago, there have been interstate pipeline and storage capacity additions to create the link-ages between new and expanded LNG regasification termi-nals on the Gulf Coast and East Coast,” Santa continues. “Finally, while it remains a long-term project, there has been renewed interest in constructing a natural gas trans-mission pipeline to bring production from the North Slope

of Alaska to connections with the pipeline network in Al-berta [Canada].”

Other contractors foresee a slight dip in work in 2009, but view the overall market as strong. “2008 has been a great year. It’s been a great year for the oil and gas companies and it’s been a great year for the contractors. I do think there will be a slowdown in 2009 when you compare it to 2008 but you’ll barely notice it. I think that 2010 and 2011 will be really strong and that could flow into 2012,” says Bob Johnston, vice president and division manager of Henkels & McCoy, a leading pipeline contractor that handles open-cut and horizontal directional drilling projects. Johnston is also president of the Pipe Line Contractors Association (PLCA).

“I’ve been doing this for 44 years and these are definitely exciting times [to be in the pipeline market],” Johnston says. “There’s more work going on today than I’ve ever seen in my entire life. There’s more work for contractors than there has been for 15 years. Before that, work was scarce and we just sort of scraped by. Now, we are reaping the re-wards of a long wait.”

Among the contractors enjoying the rewards of the ac-tive pipeline market include Henkels & McCoy, Laney Di-rectional Drilling, Sheehan, Price Gregory, Mears Group Inc., Associated U.S. Pipeline, Michels Corp., Snelson Co., Willbros, Minnesota Ltd., Otis Eastern Service, Delta Gulf and ARB.

Key oil and gas companies putting the work in motion include El Paso Energy, Spectra Energy, Williams Co., Cono-coPhillips, Kinder Morgan, TransCanada, Sempra Energy, NiSource, Enbridge, Cheniere, BP Pipelines, Denbury, En-

trenchlessonline.com DECEMBER 2008 | North American Pipelines 11

Circle 102 on Reader Service Card

Page 12: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

terprise Products, Florida Gas Transmission, Gulf Stream, Oneok, Questar and TransWestern — to name a few.

In a recent pipeline expectation report, Ziff Energy Group, a consulting firm that provides long-term forecasts for the gas industry, assessed more than 60 new natural gas pipelines and deter-mined that, if all pro-ceeded, would represent 13,000-plus miles of new oil pipelines, with a third completed by the end of 2009.

“A strong oil price out-look will be important to nudge several oil projects forward in 2009. On the gas side, [President-elect] Obama’s policy of en-couraging gas-fired power generators will be viewed positively by the gas pipe-line industry,” says Bill Gwozd, P.E., vice presi-dent of gas services for the Ziff Energy Group.

But why all the work now? What’s spurring it? According to energy associations and consultants, there are several key factors pushing this market, such as increased demand, new gas supply sources, such as shale gas, lique-fied natural gas (LNG) receiving terminals and the U.S. Rockies, coupled with new oil from the Canadian oil sands, along with the growth of gas demand for gas-fired power generation.

“The market for interstate natural gas pipelines in the United States is strong and is expected to remain strong for the foreseeable future,” says Santa. “It is possible that the combination of the economic downturn and the credit crisis may affect the pace of pipeline expansion. Still, the

fundamentals that are driving the need for new pipeline capacity remain strong.”

The Outlook for 2009Even though the market construction projections remain

strong, the pipeline market faces challenges beyond the pre-carious and bleak economic outlook — primarily qualified la-

12 North American Pipelines | DECEMBER 2008 trenchlessonline.com

A Sampling of U.S. Pipeline Projects1. The Rockies Express Pipeline: A 1,679-mile natural gas pipeline stretching from Rio Blanco, Colo., to Monroe County, Ohio. The $4.4 bil-lion project, which is divided into three sections, started in February 2006 and is expected to be completed in June 2009. Being developed by Rockies Express Pipeline, which is a joint development of JP Morgan Energy Partners, Sempra Pipelines & Storage and ConocoPhillips.

2. The Keystone Pipeline Project: A 2,148-mile crude oil transmission line that stretches from Hardisty, Alberta, Canada, to Wood River and Patoka, Ill., to Cushing, Okla. The $7 billion pipeline, being built by TransCanada and ConocoPhillips, is expected to be in service by 2010.

3. The MidContinent Express Pipeline: A 507-mile natural gas pipeline that will extend from Oklahoma to Alabama, linking central U.S. supplies with growing markets in the Midwest, Northeast and Southeast. The $1.27 billion project is a joint venture between Kinder Morgan Energy Partners and Energy Transfer Partners. The entire line is expected to be in service by July 2009.

4. The MinnCan Pipeline: A $300 million crude oil pipeline that totals 304 miles through central Minnesota. The pipeline consists of 24-in. pipe and will be used to deliver crude oil from Canada to Minnesota. The pipeline was expected to be operational in 2008.

5. The Southern Lights Pipeline: Pipeline is a combination of new construction, changes to Enbridge Inc.’s existing crude oil pipeline system and utilization of existing facilities. There will be an approximately 800-mile, 16-in. crude oil pipeline that will run from the Chicago area to Clearbrook, Minn., as well as a 20-in. line that runs from Cromer, Manitoba, Canada, to Clearbrook. The $920 million project is expected to be in service in 2009.

6. The Gulf Crossing Pipeline: Approximately 357 miles of 42-in. pipeline to transport gas from Sherman, Texas, to Perryville, La. The project will be owned by Gulf Crossing Pipeline Co., a subsidiary of Boardwalk Pipeline Partners. Boardwalk expects the pipeline to be in service during the first quarter 2009 and the additional compression to be in service by 2010.

7. The Ruby Pipeline: As proposed, the pipeline, owned by El Paso Corp., includes 670 miles of 42-in. natural gas transmission pipeline from Wyoming to an Oregon-interconnect, near California’s northern border. The project represents an approximate $3 billion investment in new pipeline infrastructure that will connect clean-burning and competitively priced natural gas reserves in the Rocky Mountain region with growing markets in the western United States. Construction could begin in early 2010, with the estimated in-service date of March 2011.

8. Alaskan Pipeline Project: A $40 billion, 1,715-mile 48-in. diameter natural gas pipeline from a new natural gas treatment plant at Prudhoe Bay on Alaska’s North Slope to Alberta. Integration of the pipeline with TransCanada’s Alberta System will provide access to diverse, lower 48 markets across the United States. The project has been delayed.

9. Chicago Express Pipeline: Kinder Morgan Energy Partners and Natural Gas Pipeline Co. of America are planning to build a 1,108-mile gas pipeline from Arlington, Wyo., to the Joliet hub in Illinois. Current timeline calls for construction to start in late spring or early summer 2010.

Page 13: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

trenchlessonline.com DECEMBER 2008 | North American Pipelines 13

bor. While the market has increased the opportunities for con-tractors in recent years, the scarcity of work before the boom forced experienced pipeliners to leave the industry, creating a critical shortage of qualified, highly skilled contractors.

“I think [the labor shortage] has been exacerbated in 2008 with the level of activity of all segments of the market, whether it’s distribution, mainline, rehab, replacement and integrity,” Deusenbery says. “The level of activity has drawn people from one segment to another and has created a short-age of qualified, skilled craftsmen.”

Deusenbery notes that this labor problem encompasses general crewmembers to senior project management. “When you see this kind of increase in activity, you can move people up the ladder but then that just creates more shortages on the bottom for you. Companies are reaching out and bring-ing in people from other industries to try to supplement it but it’s all a timing process and it just can’t happen over-night because these are qualified, skilled positions that take time to develop.”

Credit CrisisThe current credit crisis can pose a threat to the pipeline

market’s continued growth over the next few years, if access-ing capital to finance the projects becomes problematic.

“Pipeline companies will be affected if the economic downturn causes the credit quality of [oil and gas] shippers to deteriorate,” Santa explains. “It also is likely that, in the current economic environment, pipeline companies will be more cautious in committing to new projects and in accept-ing the variety of risks that often go with building a pipeline on the basis of negotiated rate contracts for terms significant-ly less than the economic life of the facility. Still, compared to many other sectors of the economy, the pipeline business remains an attractive investment. The need for energy and energy infrastructure will not diminish.”

Deusenbery adds that the credit freeze does have a direct link between distribution work and the housing construc-tion market. “We know how the housing market has deterio-rated in 2008 with the current credit crisis and it’s not likely going to improve in the near future,” he says. “It would be a significant shortfall in new distribution work in 2009 as the housing market would expect to remain low.”

Given all the potential obstacles the market faces in the next few years, everyone remains upbeat for what lies ahead. “We need the energy and they are moving a lot of oil and gas,” Johnston says. “In order to move a lot of oil and [natu-ral] gas, you have to build bigger pipelines.”

Santa says it is definitely a great time to be in the pipeline market, especially now with the push for alternative energies. “It is an exciting time, because natural gas is more than just one of our legacy fuels. It is an important part of our nation’s long-term transition to a less carbon-intensive energy economy,” he explains. “To use the tag line developed by the Natural Gas Council: Natural Gas — It’s American, Clean and Affordable.”

Santa says that natural gas is one of a few viable choices to bridge the gap to a zero carbon fuel market. “It’s also an exciting time because domestic natural gas production is on the upswing, something that many did not foresee only a few short years ago,” he says. “These trends create the need for natural gas transmission pipelines and storage infrastruc-ture that can be a part of the energy highway for transport-ing natural gas efficiently, safely and in an environmentally responsible manner from suppliers to consumers.”

Sharon M. Bueno is managing editor of North American Pipelines. Circle 103 on Reader Service Card

Page 14: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

14 North American Pipelines | DECEMBER 2008 trenchlessonline.com

Oil and natural gas play an important role in everyday life. Their uses can be seen everywhere you look – from

heated homes and buildings to vehicles clogging traffic, even through the appliances that prepare home cooked meals. These resources fuel the monotonous activities of a typical day, and without them, life’s little tasks would be difficult to complete. Canada is a major supplier of oil and gas – within its own borders, as well as in the United States. Its pipelines help deliver these vital resources to millions of people and busi-nesses, so daily life can go on as usual.

“Canada is the largest exporter of all forms of energy to the United States. While natural gas for export to the U.S. has gen-erally been declining and it is expected that this trend will continue, some new supply projects such as the one to pro-vide increased supply to the Northeast U.S. are proceeding,” explains Donald F. Santa, president of the Interstate Natural Gas Association of America (INGAA). “And oil projects, such as the Keystone Project which recently completed its first con-struction season, will support increased Canadian oil exports to the lower 48 states.”

Currently, most of the major pipelines being built in Cana-da are in western Canada to move crude oil from the Alberta oil sands to the refineries in the central United States, says Bar-ry L. Brown, executive director of the Pipe Line Contractors

Association of Canada (PLCA-CN). With millions of people in need of oil and gas, pipeline construction and expansion helps meet the demand. The major owners of the work that is being done in Canada include companies such as Enbridge, TransCanada PipeLines, Kinder Morgan Canada, Spectra, Alli-ance and Pembina.

As for the contractors taking on this type of work, the ma-jor players in Canada include Banister Pipeline, Ledcor Inc., Louisbourg Pipelines, Michels Canada, Midwest Pipeline Con-struction, North American Pipeline, O.J. Pipelines Canada, Robert B. Somerville Co., Techint E & C Canada and Waschuk Pipe Line Construction, lists Brown.

Construction in ’08 With demand for oil and gas remaining constant through-

out the past year, the Canadian pipeline market experienced continued construction and expansion. The following is a list of some significant projects that took place or broke ground in 2008:

-

line construction got under way in early January 2008, explains Brown, with work on the completion of the Inter Pipeline Fund Corridor Expansion project. This project

Canada Overview

Monitoring the Flow

A Look at the Canadian Oil and Gas Pipeline Market

By Pam Stask Photo courtesy Robert B. Somerville Co. Ltd.

Page 15: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

involved a 325-mile (475 km), 42-in. oil pipeline. The En-bridge Waupisoo project was also completed. This 30-in. oil pipeline stretched 236 miles (380 km). Both these proj-ects originated in the oil sands in northern Alberta and traveled to Edmonton.

work on the Enbridge Alberta Clipper project, which to-tals 1,000 miles (1,600 km) of 36-in. oil and 20-in. diluent pipelines from Edmonton, Alberta, to Superior, Wis. The project will continue on into next year, with three spreads during the winter of 2008/2009 and four spreads during the summer of 2009.

in 2008. The 2,148-mile (3,456-km) Keystone Pipeline will transport approximately 435,000 bpd from Hardisty, Al-berta to Wood River and Patoka, Ill., and Cushing, Okla., says Santa. 2008 construction involved the conversion of an existing gas pipeline to oil service, four pipeline spreads, 27 pump stations and three tanks. 2009 construc-tion will involve seven pipeline spreads, 40 pump stations and three terminals. Total cost of Keystone Phase I is $5.2 billion (USD).

Emera Brunswick Pipeline was done, notes Brown. This project involved building 95 miles (145 km) of 30-in. nat-ural gas pipeline from the Canaport LNG terminal at Mis-pec Point, New Brunswick, to a point on the New Bruns-

wick-Maine border near St. Stephen, New Brunswick. This line had a cost of $350 million, suggesting the cost was about $80,000/in. mile.

commissioning of the Trans Mountain Anchor Loop proj-ect. The Anchor Loop project increases the capacity of the Trans Mountain pipeline system from 260,000 barrels a day to 300,000 barrels a day.

TransCanada PipeLine’s North Central Corridor project. This construction involves 186 miles (300 km) of 42- and 36-in. natural gas pipeline in northern Alberta. Half of this project will be built during the winter of 2008/2009 and the other half during the winter of 2009/2010, with com-pletion in March 2010. Total cost is around $925 million.

Challenges in the Market As 2008 comes to a close and a new year begins, the Cana-

dian pipeline market is expected to be met with challenges affecting new project development and construction. To con-tinue construction on new pipelines, the demand must be there. However, with the current economic woes facing the United States and other parts of the world and gas demand is expected to continue declining, many projects may be placed on the backburner as existing pipelines supply the resources.

“The pipeline industry is highly dependant upon either new supply or new demand growth,” says Bill Gwozd, P. Eng., vice president of Gas Services for the Ziff Energy Group. “Demand

Circle 104 on Reader Service Card

trenchlessonline.com DECEMBER 2008 | North American Pipelines 15

Page 16: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

pull is an influence. For example, Ontario wants more natu-ral gas for power generation. However, the existing pipelines should be adequate.”

With the United States officially being declared to be in a recession and other financial institutions facing hardship, the development of future pipeline projects may be uncertain. On the up side, however, construction that is in place for the next couple years should go on as scheduled – thanks to secured financing, steady demand and advanced planning.

“At this point no one knows how the current global eco-nomic crisis will affect pipeline construction in Canada,” ex-plains Brown. “The projects for 2008 through 2010 are firm and will proceed, but the ones that are being considered be-yond that could be in jeopardy if the price of oil continues to drop. The price of oil does not affect pipeline construction as such, but it does affect the feasibility of expansion of the plant facilities in the Alberta oil sands. If the planned ex-pansions of various plants are not viable from an economic standpoint, there will not be the requirement for expanded pipeline facilities.”

Santa adds: “It is certain that the credit issues affecting the lower 48 states’ projects will similarly affect projects from Can-ada, because the issues we are facing are worldwide in scope. We expect similar planning challenges will affect Canadian companies looking to serve market demands in Canada or for export markets in the United States. The greatest challenge likely will not be the ability of pipeline companies to secure financing, but rather whether shippers will be willing and able to make the long-term contractual commitments that are nec-essary to underpin the development of pipeline projects.”

Aside from a grim economic outlook, the market faces challenges with project delays. Owners face the dilemma of whether constructing a new pipeline is a feasible investment, as existing pipelines can be used efficiently to transport the resources. With that mindset, only new discoveries of gas call

for new pipelines to be built. Oil prices have also caused a halt in projects looking to take off.

“On gas, one delay is a result of extensive regulatory re-view for the Mackenzie Delta pipeline project, which by ini-tial estimates in 2000 would have been operational by 2006,” says Gwozd. “With declining gas supply, future gas pipeline projects are only required for new gas discoveries where sup-ply had not been connected. On oil, declining oil prices have stalled and deferred oil sands projects, thereby jeopardizing new oil take away pipelines. Some oil transport projects uti-lize redundant gas pipelines, such as in the TransCanada Keystone project.”

Although delays can be expected in some projects, they still offer plenty of obstacles to those involved in the venture. Re-taining qualified personnel to work on these projects may be difficult during delays as contractual obligations exceed dead-lines and crews may move onto additional projects. “While I am not at the field level, I would suspect that the delays will be causing significant hardship with respect to crews and pipeline construction owners,” says Gwozd. “They need to maintain expertise in order to be successful to complete these projects in the future. Yet without contracts to proceed, cash flow will dry up.”

2009 Pushes Forward Although the economy has a shaky outlook for the upcom-

ing year, oil and gas pipeline work should remain steady for 2009. “There is a reasonable volume of large diameter pipeline construction work for Canadian contractors through the sum-mer of 2009,” says Brown.

The prices of oil, as well as demand from consumers – par-ticularly in the United States – will all play a role in the ne-cessity of continued pipeline development and construction. If demand remains steady or increases, the likelihood of new expansion and construction projects may boost too.

16 North American Pipelines | DECEMBER 2008 trenchlessonline.com

A map of proposed Western Canada oil pipelines, printed with permission from Ziff Energy Group.

Page 17: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

trenchlessonline.com DECEMBER 2008 | North American Pipelines 17

an approximate 1,980 miles (3,200 km) 36-in. pipeline from Hardisty, Alberta to Port Arthur, Texas. This will bring the total Keystone project cost to $12.2 billion (USD).

With oil and natural gas acting as vital factors in everyday life, there’s no ques-tion that the need for these resources will remain constant. Although there are plenty of challenges facing the Canadian pipeline market, both with consumer demand and financial hardship, construction and further pipeline development should continue on throughout the New Year.

Pam Stask is an assistant editor of North American Pipelines.

Circle 105 on Reader Service Card

“In the short-term, continued pipeline sector growth is expected, particularly con-necting shale gas,” explains Santa. “There is, however, considerable uncertainty sur-rounding the timing and volume of new shale gas supply. Similarly, domestic natu-ral gas demand in Canada, while forecast to grow strongly, is very dependent on oil sands development, which in turn is depen-dent on oil prices and U.S. demand. Cana-da is part of an integrated North American pipeline system, and like the United States, is impacted by global trends.”

In addition to relying on the demand of oil and gas from areas such as the United States, pipeline construction in Canada may also be affected by the proj-ects that the U.S. states put forth, such as neighboring Alaska.

“Canadian companies are steadfastly involved in trying to bring arctic supplies of natural gas to market (both from Alaska and the Mackenzie Delta) and the gov-ernmental agencies are deeply involved in that process,” says Santa. “Likewise, Canada will play a significant role if the Alaska natural gas pipeline project advanc-es, as there are many hundreds of miles of pipeline of that project on Canadian soil. Canada is a mandatory partner for a pipeline project to be successful. Regard-ing oil pipelines in Canada, as oil sands developments continue, additional liquid pipeline capacity is expected to be required to transport oil from Alberta to markets in both the United States and offshore. In the longer term, CO2 transportation by pipe-line is anticipated as greenhouse gas rules emerge and carbon capture and sequestra-tion develops.”

With planned pipeline construction and expansion expected to continue on in 2009, here are some projects to look for-ward to in the Canadian market:

Hills project will begin construction in late 2009. The project comprises 565 km each of 30-in. oil and 20-in. di-luent pipelines from the northern part of the Alberta oil sands to Edmonton. This project is expected to involve 16 mainline spreads over four construc-tion seasons, starting during the win-ter of 2009/2010, with completion scheduled in late summer 2011. The cost of this pipeline is approximately $2 billion, notes Brown.

Coast Extension are planned for 2009-2012 construction, increasing the ca-pacity to 590,000 bpd by 2010 and to 1.09 million bpd by 2012, says Santa. This latter expansion (Keystone XL) is

Currently, most of the pipelines being built in Canada are in western Canada to move crude oil from the Alberta oil sands to refineries in the central United States.

Phot

o co

urte

sy W

asch

uk P

ipe

Line

Con

stru

ctio

n Lt

d.

Page 18: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

18 North American Pipelines | DECEMBER 2008 trenchlessonline.com

Mexico is one of the world’s leading oil-producing na-tions and is consistently one of the leading oil suppli-

ers to the United States. In addition to its sizeable and well-developed oil industry, Mexico also has significant natural gas resources, though these are used domestically. In both cases, vast networks of pipelines spider-web the country-side, carrying these valuable natural resources to treatment and export facilities.

Like its neighbor to the north, Mexico is faced with dwin-dling oil reserves and is likely to begin mining new sources of crude, many of which are offshore. Mexico’s natural gas reserves are in a similar state in that existing veins are dwin-dling and other known reserves have not been cost-effective to mine. Still, import costs could increase to the point that these stores will need to be accessed.

In both cases, infrastructure would be required to support new access to oil and natural gas reserves. Barriers exist to developing these state-controlled resources, but as the glob-al marketplace changes and domestic financial and energy needs change, such barriers may fall.

OilMexico is the world’s sixth-largest petroleum producer

and the 10th-ranked petroleum exporter. It is the second-leading source of oil imports for the United States. Most

of Mexico’s oil infrastructure is owned and controlled by Petreolos Mexicanos (PEMEX), the state-owned petroleum company.

PEMEX was created in 1938 when President Lazaro Carde-nas led the state-expropriation of all oil resources and fa-cilities, effectively nationalizing the U.S. and Anglo-Dutch companies operating in Mexico at the time. As a result, many foreign governments refused to import Mexican oil. Nevertheless, PEMEX has developed into the tenth-largest oil company in the world.

Mexico’s oil pipelines are primarily in the Southern part of the country with the furthest north line extending 279 miles between Tampico and Monterrey. Another runs 130 miles between Tampico and Poza Rico to the South.

Poza Rico is the starting point for a 434-mile, 22-in. di-ameter pipeline to Salamanca, which houses one of Mexi-co’s primary refineries. Poza Rico is itself connected to the Nueva Teapa “hub,” which extends pipelines 248 miles to Poza Rico, 325.5 miles to Mexico City and approximately 62 miles to Salina Cruz.

In total, including minor pipelines to domestic refineries and export terminals, Mexico’s oil pipelines extend some 2,900 miles. No pipelines connect internationally as most exports leave Mexico via the southern export terminals CayoArcas, Dos Bocas and Coatzacoalcos.

Mexico OverviewOil and Natural Gas Veins Transport a Nation’s Life Blood

By Greg Thompson

Page 19: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

trenchlessonline.com DECEMBER 2008 | North American Pipelines 19

The majority of Mexico’s crude oil consists of heavier va-rieties. As much as two-thirds of Mexico’s oil production is the heavier crude, which is most commonly exported to the United States where the more sophisticated U.S. refineries can process the oil. The lighter crude streams are typically refined and used domestically.

Mexico produces nearly double the oil that it uses, which has so far accounted for the oil industry’s major role in the Mexican economy. Roughly three-fourths of this oil comes from off-shore sites in the Gulf of Mexico, specifically in the Campeche Bay. The largest oil field in the bay is the Cantrell Field, the $10.5 billion oil field which saw a 60 percent increase in production through the 1990s. The most produc-tive onshore oilfield is the Samaria field in Southern Mexico.

Mexico ranks ninth globally in total oil re-serves, though one-fourth of these reserves are still uneconomical to devel-op. Since PEMEX, on be-half of the Mexican gov-ernment, controls the oil reserves, development of these resources is almost entirely dependent on the company’s ability to finance such work. Third-party developers are ef-fectively prohibited from developing these resourc-es, though PEMEX has sought for ways to work around the legal who may be better equipped and more readily financed to access new reserves.

Natural GasMexico’s natural gas resources are not nearly as plentiful as

are its oil reserves. In fact, though it ranks 17th globally in natural gas production, its reserves rank outside of the top 20. Mexico ranks 12th in natural gas consumption, and consumes roughly 125 percent of what it produces each year.

Mexico’s national pipeline system for natural gas is com-prised of lines of 24-, 36- and 48-in. diameter that cross 18 states of the Mexican Republic. In total, some 5,700 miles of pipelines crisscross the countryside. It has eight connec-tion stations where natural gas can be imported or exported along its border with the United States.

The natural gas pipeline system is more far-reaching than its oil counterpart, extending with lines extending north to the U.S. border and south to Guatemala. The sys-tem has eight compression stations — three in the south in Cardenas and Minatitlán, and one in Valtierrilla, Guana-juato and another four in the north of Tamaulipas and Nuevo León.

Naco, Sonora, is the point of origin of a 210-mile nat-ural gas import pipeline, which runs from the United States to Hermosillo, Mexico. Other connection stations include Piedras Negras, Coahuila; two in Reynosa; two in Argüelles, Tamaulipas; Ciudad Juárez and Samalayuca, Chihuahua.

One of the Arguelles pipeline connections with the Unit-ed States, the Coral pipeline, is a newer line that is part of

the Coral Energy project at Argüelles. The 24-in. diameter pipeline is 95 miles long with a capacity of 300 million cu ft per day (MMcf/d). This Coral line will serve the same territory as 400 MMcf/d of capacity on Pacific Gas & Electric pipelines, which is also connected to the Pemex interconnection at Argüelles, Tamaulipas.

Other lines include the 7.5-mile, 24-in. di-ameter Reynosa, which has a combined capac-ity of 485 MMcf/d: Tetco 250 MMcf/d and Ten-nessee 235 MMcf/d; the 2-mile, 16-in. diameter Ciudad Juárez which has 80 MMcf/d capacity; the 40-mile Samalayuca pipe-line, which is 24 in. diam-eter and a capacity of 272 MMcf/d; the 2-mile, 16-in. diameter Naco pipe-line which has a capacity of 90 MMcf/d; and the 38 MMcf/d-capacity Piedras Negrras.

The Mexicali line, an-other cross-border con-nection is a 22.3-mile, 30-in. diameter private-

sector pipeline that services the Rosarito power plant and the cities of Tijuana and Mexicali.

PEMEX holds a monopoly, more or less, on the natural gas industry in Mexico as well. Nevertheless, natural gas has not provided the revenue stream that oil has as more natural gas is used domestically than is produced.

The 1938 nationalization of Mexico’s oil and gas industry has served the country well and has seen Mexico overcome trade restrictions to become one of the world’s leading oil-pro-ducing nations. The financial gains from the oil industry have financed significant development of its natural resources.

Projections indicate, though, that existing resources will see production declines in the coming years and third-party partnerships may be required to develop new oil and natu-ral gas reserves. Those in the pipeline industry watch and wait, ready to connect any and all new energy sources to the Mexican grid.

Greg Thompson is assistant editor of North American Pipelines. Information for this article was compiled from various Web and printed resources.

Page 20: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

More than 2.3 million miles of pipeline crisscross United States, transporting natural gas and haz-ardous liquids — chiefly petroleum products and

other chemicals and industrial gases.Pipelines are everywhere; providing the energy we rely

on to heat our homes, to generate electricity, to supply fuel for transportation and a host of other applications. These buried pipelines serve as the arteries of the nation’s energy infrastructure. Each and every day this network is under attack by the corrosive forces of nature. Corrosion is one of the biggest threats to this vital infrastructure. Fortunately, proper engineering and maintenance enables our pipeline operators to prevent corrosion and preserve these vital assets.

The corrosion process for metals is an electrochemical re-action. Almost all metals are found naturally in an oxide state (there are notable exceptions such as silver and gold.) Converting these oxides into a usable material requires pro-cessing and refining — in the simplest terms the addition of energy. Over time, when exposed to the environment, the

forces of nature conspire to return these refined materials back to their naturally occurring state. Thus, steel will react with water and oxygen to form iron oxide. The rusting of steel is the end result of this electrochemical reaction.

To understand and prevent pipeline corrosion, it is important to understand this reaction process. There are four key elements that are required for corrosion of steel to occur and when combined together these elements are referred to as a galvanic cell. The galvanic cell (see Figure 1) requires:

20 North American Pipelines | DECEMBER 2008 trenchlessonline.com

The ABCs of Pipeline Corrosion

Figure 1 - Galvanic Corrosion Cell

Technicians drill holes in pavement to allow access for indirect inspection of buried pipelines located under the road.

By Ted Huck

Page 21: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

trenchlessonline.com DECEMBER 2008 | North American Pipelines 21

anode system can supply sufficient current across the entire structure, then there can be no corrosion. Thus cathodic protection provides electrical current to those areas not iso-lated from the environment by virtue of being coated. Coat-ings and cathodic protection, when properly applied and maintained, work in concert to arrest corrosion.

With millions of miles of gas and liquid hazardous mate-rials, the pipeline industry has a responsibility to minimize catastrophic failures resulting from corrosion utilizing the two-layered approach of coatings and cathodic protection. Overseeing the pipeline industry, the Department of Trans-portation has created the Pipeline and Hazardous Materials Safety Administration (PHMSA). Working together with in-dustry, PHMSA has mandated a comprehensive risk-based program known as integrity management.

Integrity management is a process that requires all pipe-line operators to evaluate their pipeline, identify those areas of highest consequence in the event of pipeline fail-ure, and then perform regular risk-based inspections. A

Circle 108 on Reader Service Card

Anode: The anode is where corrosion occurs on the metal and is characterized by a lower electronegative potential than the cathode

Cathode: The cathode is where current flows from the anode completing the corrosion reaction

Metallic Path: The metallic path allows current to flow completing the reaction circuit

Electrolyte: The electrolyte is a conductive environ-ment that supplies the necessary reactants for corrosion to occur. For instance, the concrete, water, or soil that surrounds the steel.

Unfortunately, three of the four components typically exist within any steel structure. Steel, at the micro-level, is not entirely homogeneous and as such there are minor differences in electrical potential that occur naturally from one area to another along the surface of a steel structure. Thus, the same piece of steel can provide both the anode and the cathode. And since steel is a conductor of electric-ity, the adjacent cathodic and anodic steel regions inherent-ly have a metallic path. Thus all that is needed is a suitable electrolyte – water, soil or even a thin film of condensation – for the corrosion process to occur.

Where current leaves the metallic structure, corrosion oc-curs resulting in the iron in the steel reacting with water and oxygen to form iron oxide. Where the current returns to the metallic structure, there is no corrosion reaction but instead hydrogen molecules form at the surface protecting the steel from the environment.

The rate of the corrosion reaction is a function of current flow with 1 amp of current consuming approximately 20 lbs of steel in a year. Thus, over the course of years, milliamps of electrical current can have a devastating impact on steel piping systems carrying natural gas, crude oil or other haz-ardous materials whose release into the environment can have catastrophic results. Left unprotected, piping systems in corrosive environments can fail quickly as the result of external corrosion reactions.

The pipeline industry utilizes a two-layered approach to preventing corrosion on its buried pipelines. The first layer is quite simple — the pipeline is coated to isolate the steel from the environment. If the steel pipeline is not exposed to the surrounding environment, then the electrochemical reaction cannot occur. Pipeline coatings have evolved over the years with significant technological advancements in coating quality, effectiveness, cost and design life.

Coatings are not, however, perfect, nor do they have an indefinite life. So while today’s advanced coatings can ef-fectively isolate 99-plus percent of the pipeline surface from the environment, small holidays, or gaps in the coating, still exist and are subject to corrosion. Over time, even the best coating system will degrade, rendering more of the un-derlying pipeline subject to the effects of the environment.

The second layer of protection applied to pipelines is ca-thodic protection. Cathodic protection in its simplest form involves adding an external anode system connected elec-trically to the pipeline. The external anode system provides electrical current to the entire pipeline thereby rendering the entire pipeline cathodic. In the basic galvanic corrosion cell (Figure 2), the anode is where current leaves the struc-ture and the cathode is where current returns to the struc-ture. At the cathode, there is no corrosion. If the external

Figure 2 – Galvanic Cell with Cathodic Protection

Page 22: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

22 North American Pipelines | DECEMBER 2008 trenchlessonline.com22 North American Pipelines | DECEMBER 2008

variety of inspection techniques are used depending on the pipeline and its location. The most common meth-od of testing a pipeline is to use an in-line inspection (ILI) tool that passes through the pipeline collecting data. These tools are commonly referred to as “smart pigs.” Not all pipelines, however, can accommodate pigging, and for those pipelines, various aboveground survey techniques can be used to inspect the pipeline, its coating system and the effectiveness of its cathodic protection system.

These indirect inspection tools are able to provide valuable information on the underlying pipeline’s con-dition and can provide indications of corrosion. These indications are classified and prioritized with the worst ones being subject to a more detailed direct inspection involving excavating to expose the pipeline and per-form more exhaustive examination and testing. The direct examinations are used to validate the indirect examination results and based on the findings it may be necessary to reclassify the original data. If necessary, repairs to any affected areas can be made prior to com-pleting the examination and returning the site to its original condition.

While corrosion remains a significant threat to our pipeline infrastructure, the proper application of coat-ings and cathodic protection will effectively halt the cor-rosion reaction. Regular risk-based assessment of buried pipelines, combining both indirect inspection tools and selective direct examinations, can validate and reclassify the indirect inspection results and affirm that pipelines are properly protected. Thus, we can assure the integrity of our nation’s pipeline system, and avoid catastrophic pipeline failures.

Ted Huck is vice president of sales and marketing for MAT-COR Inc., headquartered in Pennsylvania with an office in Houston.

Pipeline with coating removed for ultrasonic thickness testing of the underlying pipe.

Circle 138 on Reader Service Card

Page 23: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

trenchlessonline.com DECEMBER 2008 | North American Pipelines 23

When working in the trenches, safety is always impor-tant, and trench shoring and shielding is the cru-

cial ingredient for safe trench operations. It’s important to know the difference between a shore and shield before lin-ing your trench with a safety system.

“A [trench] shield is designed strong enough to with-stand a cave in and keep workers in the shield to remain safe,” says John Francese, national sales manager for GME, a trench shield manufacturer based in Union City, Mich. “Shoring replaces the lateral pressures that exists when a trench is dug with equal or greater pressure keeping the walls of the trench intact.”

While commonsense would suggest that going into a trench could lead to severe consequences such as injury or worse, there are stringent trench shore and shield require-ments set forth by the Occupational Safety and Health Ad-ministration (OSHA). The basics state that all workers in trenches 5-ft deep (4 ft in certain states) must be protected by a system in the form of sloping, shoring and/or shields.

“The regulations for excavation is an extensive standard,” Francese says, “The OSHA Standard 1926 subpart P covers all aspects of safe work in excavations. Every jobsite where an excavation has begun requires a competent person with a full knowledge of the standard to be onsite. The depth at which a contractor is required to shore, slope or shield is 5 ft, unless the competent person deems it necessary to pro-tect workers in a shallower depth.

“Becoming familiar with OSHA excavation standard is the key to remaining safe in working in excavations,” Fran-cese states.

Training managers and supervisors to ensure that they meet the “competent person” requirements as defined by OSHA is imperative to identifying and handling trench haz-ards; a person “who is capable of identifying existing and predictable hazards in surroundings or working conditions that are unsanitary, hazardous or dangerous to employees, and who has authorization to take prompt corrective mea-sures,” according to OSHA 29 CFR 1926.32(I).

Cure for the Common QuestionIs it permissible for a worker to stay in a trench box while a backhoe is lowering items, such as precast concrete pipe sections, into the trench?

“Whether it would be permissible for an employee [who is not under the load] to remain in a trench box while a backhoe was lowering material such as a precast concrete pipe section into the trench box would depend on whether the employee’s location subjects him/her to a struck-by or caught-in-between hazard,” says Steven F. Witt, director of Directorate of Construction for OSHA.

Although 29 CFR 1926.651(e) requires that no one works under a load that is being lifted or handled by lifting or dig-ging equipment, so an employee may not work under a low-ering pipe, for example, whether he or she is in a trench or

not. However, that same provision does not address caught-in-between and lateral struck-by hazards when an employee is in a trench, but not directly under a load being handled.

“For example, an employee standing between the hoisting path and the trench box wall, typically, would be subject to both hazards,” says Witt. “In contrast, if a long trench box (or a series of adjacent trench boxes) was being used, and the employee was standing far enough away from the equipment and hoisting path so that there was no struck-by or caught-in-between hazard, then the employee could remain in the trench box”

When two boxes are stacked in a deep trench, does the top box need to be rated for the full depth of the trench or does it need to be rated only for the depth to which it’s placed?

“When trench shields are stacked in an deep trench, they do not all have to be designed to resist the forces calculated for the deepest part of the trench,” says Patricia K. Clark, di-rector of Directorate of Compliance Programs for OSHA. “The standard only requires that the shields be used at a depth not greater than that for which they are designed. To facili-tate proper stacking in deep excavations, a design or system should be used to prevent the shields from being misplaced in the trench when shields of different ratings are used. Design-ing the shields so they will fit together only one correct way or using a marking system that readily identifies the maximum depth each individual shield can be placed, are examples of systems that could be used to prevent such misplacement.”

Do the Federal OSHA standard address the issue of how far a trench shield can be from a trench wall?

“Assuming that cave-in protection was required under 29 CFR 1926 Subpart P (Excavations), and that a shield was used to provide that protection, §1926.652(g)(1)(ii) would require the shield to be ‘installed in a safe manner to restrict lateral or other hazardous movement of the shield in the event of the applica-tion of sudden lateral loads,’” says Russell B. Swanson director of Directorate of Construction for OSHA. “Therefore, although our standard does not set a maximum distance between a shield box and a trench face, an employer would be required to ensure that, in the event of a collapse of the face, the shield would not move laterally. Trench work is frequently performed with limited room for maneuver, which means that workers can be injured with just a little movement by a trench shield.”

If a contractor has several of the same make and model trench shields at a jobsite, does he have to have separate manufac-turer’s tabulated data on hand for each specific shield?

“Protective systems that are designed using manufactur-er’s tabulated data can be used in trenches deeper than 20 ft provided the use is within the limits of the data, including depth limitations and soil type. It should be noted that all tabulated data, by definition (1926.650), must be approved by an RPE,” says Clark.

Fortifying TrenchesEnsuring Safe Trenches and Best PracticesCompiled by North American Pipelines Staff

Page 24: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

24 North American Pipelines | DECEMBER 2008 trenchlessonline.com

The demand for energy coupled with rising gasoline prices has led to a boom in oil and gas pipeline con-struction in North America. Increasingly, project own-

ers and contractors have turned to trenchless methods, spe-cifically horizontal directional drilling (HDD), to complete these projects.

It’s no surprise that the oil and gas sectors have relied on HDD, especially when you consider that horizontal di-rectional drilling was born from the gas industry. One of the first recorded river crossings ever done by directional drilling was a 4-in. gas installation done for Pacific Gas & Electric in 1971.

Since that time, the sophistication of the method has grown by leaps and bounds. That first river crossing con-sisted of 500 ft of 4-in. line; now diameters of 42 in. and distances of 3,000 ft and more are commonplace.

“Pipeline work ebbs and flows, but recently it has mush-roomed, particularly for natural gas pipelines,” said John Hair of J.D. Hair Associates, a 34-year veteran of the pipe-line industry.

“Activity for large diameter HDD work has been through the roof,” said Eric Skonberg of Trenchless Engineering Corp. “Over the past few years, there have been more 42-in. crossings than I could have imagined.”

As an indication, Skonberg cites the fact that in 2005, the record crossing for a 42-in. diameter pipeline was 5,000 ft. In 2008 alone, there have been at least seven crossings of 42-in. pipe in excess of 5,000 ft.

Expanding MarketThe growth of large diameter HDD work in the United

States has been largely linked to the expansion of the natu-ral gas infrastructure, both from developing well fields and the construction of liquefied natural gas (LNG) terminals. As new wells or LNG facilities are built, a need is created to be able to move the gas to existing pipeline infrastructure.

According to statistics from the Energy Information Ad-ministration (EIA), natural gas production in the United States grew 3 percent from first quarter 2006 to first quarter 2007, followed by a steep 9 percent rise from first quarter 2007 to first quarter 2008. This period of explosive growth followed nine years of no net growth through 2006.

For pipeline and large-diameter HDD contractors alike, this has been a boom time. “Most of the HDD work is re-lated to right of way work, crossings, permitting or work in environmentally sensitive areas,” Skonberg said. “It mostly involved the installation of 30-in. diameter pipe and up to bolster existing transportation infrastructure.”

In these cases, HDD is far from the novelty that it was in its infancy. “It’s gotten to the point where it’s almost used as a reflex when you encounter difficult conditions. Early on in the evolution of HDD it was viewed as an expensive alternative. Now it’s becoming the method of choice unless you’re in a greenfield where you can open-cut.”

One of the most beneficial impacts of directional drill-ing for pipeline owners is that it can reduce the time to construct. Permitting and right of way issues can be long,

Energy Market Turns to HDDBy James W. Rush

Page 25: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

trenchlessonline.com DECEMBER 2008 | North American Pipelines 25

way people invest,” Savage said. “It could lead to some proj-ects being delayed.”

However, demand remains high and projects on the books are lined up through 2012 and beyond. “The outlook for pipeline work remains strong if the financial markets stabilize,” Haynes said. “2008 has been a strong year and we’re hoping it continues as we move forward.”

Another recent development has been a drop in oil prices after reaching an all-time high of nearly $150/barrel in July. In late October, oil was trading below $70/barrel. Part of the demand for alternative energy sources, and hence pipeline work, was a result of the increase in oil prices, so there is con-cern over how that will impact the pipeline work. “If oil stays below $70/barrel for an extended period of time, how will it affect the thinking of energy companies?” Haynes asked.

However, with the increasing sentiment among Ameri-cans for energy independence, as well as cleaner burning fuels, the demand for natural gas isn’t likely to dissipate soon. “I’m optimistic that natural gas will continue to gain in the overall energy mix in the future despite falling gas prices,” Skonberg said.

John Barbalich with Hatch Mott MacDonald concurs. “The natural gas industry has not followed the poor econ-omy as closely as some other infrastructure sectors. We see future growth in this area.”

With its track record of success and increasing popular-ity, HDD will no doubt play an integral role in oil and gas pipeline construction well into the future.

James W. Rush is editor of North American Pipelines.

Circle 111 on Reader Service Card

drawn out processes, but the minimal impact of HDD makes it easier for permitting agencies to allow construc-tion. Additionally, pipeline owners are seeing the contrac-tors themselves opting for directional drilling as a sort of value engineering proposal.

Naturally the growth of HDD is an extension of the grow-ing pipeline need on a large scale. “We’re seeing growth across the board, both in terms of our trenchless equipment and our trenchers,” said Ed Savage, trenchless segment manager for Vermeer Corp.

A great deal of the activity in the United States has cen-tered around new developments in the Barnett shale region in the Dallas-Fort Worth area, one of the largest onshore natural gas deposits in the country, as well as new LNG facil-ities along the Gulf Coast and Atlantic Coast. Additionally, work in the upper Midwest has contributed to the growth, with new pipelines bringing gas from western states and Canada to eastern markets.

State of the MarketAs the market has evolved, so have the tools and tech-

niques used to complete the projects. HDD projects have in general gotten larger — both in terms of length of pipeline being pulled in and the diameter. Diameters of 42 in. are fairly common whereas 30- and 36-in. had been previously typical.

To handle the large pipelines, large drill rigs and experi-enced contractors are a must. Rigs have been classified into three categories — mini or compact, mid-size and maxi. The rigs used for large diameter pipeline projects are maxi rigs – those with 100,000 lbs or more of pullback force.

To meet demand, rig manufacturers have increased their offerings in the maxi class. For example, Vermeer, a leading rig manufacturer in the mini and mid-size class, recently purchased big-rig builder HRE to enter into the maxi mar-ket. HRE was a producer of rigs in the 500,000-, 750,000- and 1 million-lb classes. “The increasing use of trenchless for projects of this magnitude really drove us to get into the big rig market,” said Savage.

With all the demand and construction activity over the last three years, one limiting factor has been the avail-ability of experienced crews to complete these technologi-cally challenging projects. “There aren’t nearly enough engineers and construction crews to do the jobs available now,” Hair said.

“We are maxed out to capacity,” said David Haynes, man-ager of business development for Mears Group Inc. “When we would take calls, the first question was ‘Are you avail-able?’ Price was secondary. The shortage of labor has been the big thing. We have the equipment we need, so we are constantly recruiting and training people to do the work.”

Uncertain FutureWhile the industry has been riding high over the last few

years and demand shows little signs of easing, the overall state of the economy is a cause for concern. Tightening credit markets are making the availability of capital more difficult to come by, potentially limiting some of the pro-posed projects.

“Everyone is unsure of what will happen in the next six months,” Haynes said. “We don’t see any reason to expect a big slowdown, but we have seen a few projects shelved. It remains to be seen how the credit crunch may affect some of the companies that may not have a lot of cash.”

“As prices fluctuate, that could affect the market and the

Page 26: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

26 North American Pipelines | DECEMBER 2008 trenchlessonline.com

A fundamental component of internal pipeline corrosion prevention is a thorough, regular cleaning program to prevent and minimize corrosion environments. Clean-

ing is primarily achieved through the use of a variety of pig-ging tools and can include the use of chemicals. Special pur-pose pigs can also help deliver corrosion inhibitors.

Progressive CleaningIf a pipeline has not been recently cleaned, a progressive

cleaning program should be employed. The basic steps of this process are:

foam, and run repeatedly until only a small amount of debris or contaminant is expelled. In the case of excep-tionally thick deposits, a smaller size pig may need to be

-

— again, running the same type of pig repeatedly until only small amounts of contaminants are collected. The addition of a bypass feature to more aggressive pigging tools may also be used to enhance their overall clean-ing effect.

Types of Deposits/Contamination (Cleaning Needs)

Types of pigs/cleaning elements:-

pensating brushes-

es, studs

above to enhance effectiveness.In addition to conventional cleaning pigs, there are pig-

ging tools designed specifically for deep cleaning — some

There are also special pigs designed to redistribute corrosion inhibitors to the top of a pipeline. These specialized tools

respectively.

combat internal corrosion, it has been difficult to achieve

effective inhibitor coverage to the top side of a pipeline. A

-

Some users of spray pigs have eliminated inhibitor batching runs by using this tool in regular combination inhibitor dis-

in the bottom of the pipe are sprayed to the top during de-

been realized using these tools and processes.Regardless of the application method, corrosion inhibitors

a clean metal surface in all risk areas. No inhibitors can be effective on the top or bottom of a pipe if corrosion-causing agents, such as debris and deposits, are not removed from

-

sprung brush bristles have proven effective at aggressively --

to ensure good corrosion prevention and remediation.

Corrosion Inhibitor ApplicationThe first step prior to applying a corrosion inhibitor is

inhibitor applications are implemented, maintenance pig-ging must be employed to ensure the ongoing effectiveness

design and function and are better suited to deliver a highly effective corrosion management pigging program.

--

ing brushes. These special-purpose pigs have been proven -

-proved cleaning of individual pits by brush pigs, corrosion inhibitors have a much better chance of contacting these hard-to-reach surfaces and doing their job.

Also, because of the relatively aggressive and self-cleaning

-er contaminants, such as paraffin.

Pigs for Corrosion Inhibitor Batching

rear of the chemical slug.

High- Performance Pigging

By Eric N. Freeman

Page 27: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

trenchlessonline.com DECEMBER 2008 | North American Pipelines 27

Circle 112 on Reader Service Card

Special Features of the Front Pig(s):

all multi-lip sealing cups.

Special Features of the Rear Pig(s):

Spray Pig Continuous injection of corrosion inhibitors alone may not effectively control

top of the line corrosion in some pipelines such as multi-phase gas gathering

continuous injection or batch inhibition and a spray pig are utilized. As the spray

pipe is siphoned through the front inlets and sprayed onto the top area of the in-

-

Inhibitor batching runs may also be made by introducing a slug of inhibitor

foam pig at the front

found that the spray pig is more effective at the

through the pig results in a more effective spray,

inhibitor being readily available to the suction nozzles in front.

Alternatively, the spray pig has been used as a de-

serves to effectively re-distribute inhibitor-con-

of the pipe. In some ap-plications, this has been

found to be most effective and more efficient in terms of operating costs, presum-ably due to the increasingly dense vapor cloud that forms in front of the spray pig

This vapor cloud has less opportunity to form in the batching mode.

-

Pigging FrequencyAs mentioned previously, if a pipeline has not been pigged in some time, a

Page 28: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

28 North American Pipelines | DECEMBER 2008 trenchlessonline.com

such as foam pigs, and advancing to more aggressive pigs.

the same pig or the same type of pig may be necessary to -

pig types and cleaning elements should be selected to en-sure that maximum contaminants continue to be collected and lines are free of corrosion-causing contaminants and conditions.

Measurement

-

-tainly important to develop at least some ongoing mea-sures of pigging effectiveness. Some pigging measures to consider are:

– Volume or mass of contaminants removed

trends– Composition– Sampling — comparisons/trends

treatments:

– Injected inhibitors may fall out some distance from injector.

the pipe.

line corrosion. Special coupon installations in the top of the line are effective at monitoring this type of corrosion,

Eric N. Freeman is with T.D. Williamson. (All photos courtesy of T.D. Williamson Inc.)

Baker Hughes Pipeline Management GroupWestern Hemisphere OperationsHoustonPh: (281) 230-7100 Fax: (281) 230-7101 E-mail: [email protected]

B.G. Technical Inc.Sugar Land, TexasPh: (281) 240-1030 E-mail: [email protected]

GD Closure SystemsHoustonPh: (281) 807-2815 E-mail: [email protected]

Girard IndustriesHouston Ph: (713) 466-3100 E-mail: [email protected]

Greene’s Energy Group – Inland Pipeline OperationsHoustonPh: (281) 821-8469 E-mail: [email protected]

Halliburton (North America Office)HoustonPh: (281) 988-2229 E-mail: [email protected]

Inline Services Inc.HoustonPh: (281) 401-8142 Ph: 888 973 0079 E-mail: [email protected]

Knapp Polly Pig Inc.HoustonPh: (713) 222-0146 E-mail: [email protected]

Knapp Limpro Nacional SA de CV.Mexico and Latin AmericaGuadeloupe, Mexico Ph: +52 83-371717 E-mail: [email protected]

LTS Inc.HoustonPh: (832) 467-4040 E-mail: [email protected]

N-SPEC, a division of BrenntagLafayette, La.Ph: (337) 272-0158 E-mail: [email protected]

PII North America Inc. North AmericaHoustonPh: (713) 803-0900 E-mail: [email protected]

Pigs Unlimited International Inc.Tomball, TexasPh: (281) 351-2749 Ph: (800) 578-7436 E-mail: [email protected]

Pipeline Inspection Co. Ltd.HoustonPh: (713) 681-5837 E-mail: [email protected]

Pipeline Pigging Products Inc.HoustonPh: (281) 351-6688 Ph: (800) 242-7997 E-mail: [email protected]

ROSEN North America HoustonPh: (281) 442-8282 E-mail: [email protected]

Synergy Services Inc.Foley, Ala.Ph: (251) 971-3105 Ph: (866) 933-0342 E-mail: [email protected]

TD Williamson North America Pigging ProductsTulsa, Okla.Ph: (918) 447-5400 E-mail: [email protected]

TDW Offshore Services LLCHoustonPh: (832) 448-7200 E-mail: [email protected]

Tracerco USAPasadena, TexasPh: (281) 488-0039

Tuboscope Pipeline ServicesHoustonPh: (713) 799-5445 E-mail: [email protected]

Weatherford P&SS (Western Hemisphere)HoustonPh: (713) 580-9700 E-mail: [email protected]

Pigging Directory

Page 29: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

trenchlessonline.com DECEMBER 2008 | North American Pipelines 29

Murphy, project manager David Bristol and safety profes-sionals Todd Hoebing, Jesse Johnson and Jack Kemp,” says Sean Nicholson, director of health and safety for Michels Corp. “They did a fantastic job and made everyone at Mi-chels Corp. very proud.”

In 2010, the pipeline will be extended to Cushing, Okla. The 2,148-mile pipeline includes 1,379 miles of new pipe-line constructed in the United States, as well as 232 miles of new pipeline and 537 miles of existing pipeline to be converted from natural gas to crude oil transmission all within Canada.

Jim Murphy is Michels Corp. director of pipeline major projects.

Circle 113 on Reader Service Card

Work on the Keystone Pipeline may be wrapping up for 2008, but due to record-breaking rainfall, crews from Michels Pipeline Construction will

return in early January 2009 to continue work on tie-ins and complete the remaining six miles of 30-in. pipe.

Back in mid-May 2008, Michels Pipeline Construction started work near Valley City, N.D., on a 130-mile spread of the 2,148-mile Keystone Pipeline project. Two days were spent on safety and environmental training before work on the right of way could begin.

“There were several issues to work through from the start on this project,” says Michels Pipeline Construction project manager David Bristol. “Several locations within the first 40 miles had to be skipped because of environ-mental issues.”

Those environmental concerns included minimizing im-pact on protected species such as those covered by the Mi-gratory Bird Act. “It was frustrating, at times, but we worked through it and everyone was able to successfully move for-ward,” says Bristol.

Crews from Michels installed 127 miles of 30-in. steel pipe with 4 ft of cover. Hydrostatic testing, mainline valves and final clean-up will resume in the spring 2009 while the next 140 miles of pipe are being installed in South Dakota.

In September, Michels Directional Crossings assisted by directional drilling 1,500 ft in length under the Sheyenne River and 1,000 ft in length under Crow Creek. Crews also completed a 3,000-ft drill across the Missouri River near Yankton, S.D.

Dean Cowling, Keystone project director for TransCan-ada, expressed appreciation for the job Michels has done. “We have been pleased with the quality of work Michels Pipeline Construction has delivered on Keystone,” says Cowling. “Michels has helped to successfully manage construction challenges the project has faced. A strong safety performance, despite significant weather-related challenges, is yet another important measure of Michels’ success.”

During the project, officials from TransCanada and Cono-coPhillips, owners of the Keystone Pipeline, dispatched a seven-person audit team to evaluate and measure Michels’ safety management performance and processes. At the close-out meeting for the audit, it was revealed that Michels received the highest score (90) any contractor has received during an initial CSMP (construction safety management program) audit.

“The credit for the success of Michels’ safety performance on the Keystone project goes to construction manager Jim

DECEMBER 2008 | North American Pipelines 29

Pemberton Inc...We Have Your Attachment

Supplying Equipment Dealers and Pipeline Contractors with the specialty attachments they need for pipeline applications.

PEMBERTON1.800.393.6688407.831.6688

[email protected]

Work Continues on the Keystone PipelineIn 2010, the Pipeline will be Extended to Cushing, Okla.

By Jim Murphy

Page 30: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

30 North American Pipelines | DECEMBER 2008 trenchlessonline.com

Citadel TechnologiesCitadel Technologies, Tulsa, Okla., is a leading developer

and manufacturer of quality, ultra-build, 100 percent epoxy and carbon composite systems for interior and exterior pipe rehabilitation. Its Diamond Wrap and family of the Dia-mond Wrap systems includes a bidirectional weave of car-bon fiber and a 100 percent solids epoxy, forming a com-posite system that is stron-ger than steel. The structural system forms a pipe around a

pipe, and each successive wrap increases the pressure rat-ing. Its bidirectional weave allows for strength in both the hoop and axial directions experiencing little or no creep properties over time, ensuring that there is no reduction in strength. Because of its low profile, Diamond Wrap can be installed on tees, elbows, straight runs of pipe, confined spaces and irregular surfaces that require structural rein-forcement or leak containment. RS#124

Clock SpringClock Spring manufactures and designs composite re-

pair sleeves used to permanently restore structural integ-rity to pipelines. Clock Spring products are applied without welding or hot work of any kind. With the patented Clock Spring system, permanent field repair and rein-forcement of pipe sections leaking or weakened by corrosion or me-chanical dam-age is easy, fast and inexpensive. The Clock Spring sleeve is a spe-cially developed, 0.06-in. sheet of high-strength composite material. Its unique coil-shaped configuration creates a ma-trix memory that allows the Clock Spring to wrap tightly around pipe of virtually any size, which forms a composite wrap that actually exceeds the yield strength of the original pipe. Repairs can be applied without stopping throughput or reducing pressure. RS#125

Enduro Pipeline Services

Enduro Pipeline Services now of-fers Dual Diameter DigiTel Flux Log-ger (DfL) utilizing Magnetic Flux Leakage (MFL) technology. Pipe Ranges include 10 in x 12 in., 8 in. x 10 in. and 6 in. x 8 in. Acquires data from several sources simultaneously in both pipe sizes listed, all in one pass, negating the need to perform independent surveys for each pipe

size. Data sets for conducting metal loss, deformation and inertial surveys; along with internal and external discrimi-nation and residual field data are taken in one pass. Process-ing and analyzing the closely coupled data allows software users/analysts to more readily recognize pipeline features and assess conditions. Any areas indicating geometry and/or metal loss features may now be simultaneously evaluated for deformation, strain, profile and permeability variations. RS#126

Fomo Products Inc. Breakers constructed from heated, spray polyurethane

foam offer a faster and easier approach while allowing job-site portability. The Magnum Heated System from Fomo Products Inc. includes a two-component foam system housed in a two-ton truck and a length of heated hose up to 150 ft long with an application gun. Using one truck and system, contractors can build 12 breakers compared to the two breakers built using one truckload of sandbags. One sin-gle worker can spray quickly and safely without having to stop, easily erecting one breaker in 30 minutes. Fomo’s sys-tem uses low-den-sity foam to allow the passage of elec-trical charges and is applied around the pipe. High-density foam is applied on top and is used to build the rest of the breaker. The heated hose keeps foam at consistent, warm temperature for a high-quality spray. RS#127

Geospatial Corp.Geospatial Corp. is a premier solutions provider for un-

derground infrastructure industries such as oil and gas pipe-lines, electric and telecom conduits and municipal water and sewer pipelines. Using proven mapping systems tech-nology, Geospatial accurately maps the XYZ centerline co-ordinates to create 3D maps and GIS databases. Geospatial’s Smart Probe travels through pipelines carrying numerous sophisticated sensors to collect mapping and location data.

This data is stored within the probe un-til the end of a pipeline run and then ex-tracted to a lap-top. Technicians download the data onsite or

through the Internet into various GIS databases, which are easily accessible by clients. Geospatial has developed a pro-prietary Web-based, data management portal, GEO/Under-ground, to organize and manage various types of collected data pertaining to pipeline location and condition evalu-

Products

Page 31: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

ations, including commercially available assessment tools such as GPR, video inspection or leak/corrosion detection technologies. RS#128

Gulf Coast ShelterGulf Coast Shelter currently produces between 150 to 160

mats per day in Laurel, Miss., and keeps more than 1 mil-lion board ft or more than 100 truckloads of raw inventory to make mats with on its yard at all times. Gulf Coast ships mats by truck and by rail to locations across North America. The company’s team of six trad-ers is backed by Shelter Products’ support and its staff. RS#129

Henkels & McCoyHenkels & McCoy’s experience in the construction of nat-

ural gas infrastructure spans more than 50 years. Henkels & McCoy are an integral part of all aspects of the value chain from wellhead to burner-tip and are committed to the suc-cess of its customers and the natural gas market. With the benefit of its long-term industry experience, the company is fully equipped to meet this commitment. Henkels & Mc-Coy has responded to the operator qualification challenge by going above and beyond expectations and offers assur-ance to its customers that they will stand up to regulatory

scrutiny should the need arise by implementing spe-cialized software and document re-tention controls. Henkels & McCoy offer customers better access to a superior and more mobile workforce, reduces operators’

risk exposure and assists in controlling costs. RS#130

Hobart Brothers To ensure consistent chemical and mechanical properties

when welding on critical X80 pipeline applications, Hobart Brothers offers its Hobart Fabshield X80 self-shielded flux-cored welding wire. The Fabshield X80 creates welds with high tensile strength and excellent CVN (Charpy V-Notch) impact toughness that remain ductile at low temperature. Classified under American Welding Society A5.29, class E81T8-Ni2 J, the Fabshield X80 wire provides a typical tensile strength of 94,000 psi and a yield strength of 84,000 psi. The wire’s ‘J’ desig-nation guarantees that the welding wire meets the strict requirements for low temperature CVN impact toughness as determined by AWS, and ensures more exacting proper-ties than competitive E81T8 wires classified to only ‘G’ designations. Specifically, Fabshield X80 welding

wire provides CVN impact values from 107 ft/lbs at -20 F to 96 ft/lbs at -40 F. RS#131

JM EagleJM Eagle manufactures high density polyethylene (HDPE)

water pressure pipe for municipal and industrial water transmission systems, available in ½- to 63-in. diameters. JM Eagle’s HDPE pipe is recognized in the industry for its zero-leak rate, high performance and long life expectancy. Color striping is available in order to identify their application, such as blue stripe for potable water, green stripe for sewer application and purple stripe for reclaimed wa-ter. HDPE is light-weight and comes in long lengths, allowing for easier and convenient installation. Because of its flexible nature, it re-duces the use of fittings. HDPE also allows for non-intrusive installation by offering technology such as directional bor-ing, pipe bursting and sliplining. RS#132

Mears Group Inc.Mears Group specializes in horizontal directional drill-

ing services and is one of the largest horizontal directional drilling contractors in the world with a fleet of 28 small, mid-size and large drilling rigs with up to 1.1 million lbs of pullback that can install pipe up to 60 in. in diameter and up to 8,000 ft in length. Mears has recently acquired a

1 million-lb rig featuring a state-of-the-art automated pipe loader, innovative safety features, stream-lined mobiliza-tion and an advanced sound suppression system. RS#133

PrimaveraPrimavera, a wholly owned subsidiary of Oracle Corp., is

a leading worldwide provider of enterprise project portfolio management (PPM) solutions for project-intensive indus-tries. Primavera’s PPM software helps oil and gas companies propose, prioritize and select project investments. It then enables them to plan, manage and control these complex projects and portfolios. Current market condi-tions are a timely reminder that, in our industry, portfolio, project and risk management is crucial for all involved — from CFOs to project schedulers. Through its solutions in-dividuals and groups tasked with orchestrating the complex interaction of people, equipment, budgets and timelines are better enabled to complete their projects on time and on budget. RS#134

trenchlessonline.com DECEMBER 2008 | North American Pipelines 31

Page 32: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

SpectraSensorsSpectraSensors H2S, H2O and CO2 Analyzers help natural

gas pipeline operators and gas processors measure gas quali-ty quickly and reliably with no light source aging, no carrier gas, no lead tape and no ongoing recalibration. SpectraSen-sors SS2100 analyzer employs a laser spectroscopy technique that measures trace amounts of a particular gas compound

(H2S in this case). The sensor determines the amount of light absorbed at a wave-length that is specific to the compound being measured. The system consists of a cell that the sample gas flows through, a tunable laser diode that emits a specific wavelength of light through the gas, an optical detector and software to analyze and output the results. The method is ex-tremely fast and the results are highly reli-

able. The laser does not contact the gas so the sensor is not affected by contaminants in the sample. RS#135

VacuworxContractors today are faced with ever growing demands

for a safer jobsite. Meeting these de-mands can be quite difficult especially with the rising costs of doing business. Vacuworx Interna-tional has the solu-tion to meet these demands. Vacuworx is a world leader in vacuum lifting for

field applications. Vacuworx has more than 20 years of ex-perience in vacuum lifting and is currently operating in a new, state-of-the-art, manufacturing facility in Tulsa, Okla. Vacuworx has built its reputation by providing contrac-tors around the world with safe and efficient solutions to material handling in the field. Safety has always been the primary focus at Vacuworx; yet along with safety comes greater efficiency for the contractor yielding higher profits. RS#136

Vermeer Corp.Vermeer has expanded its industry-leading line of hori-

zontal directional drills to include three rigs for the large diameter pipeline industry. The units feature pullback forces of 500,000, 750,000 and 1 million lbs. These drills are built upon the proven and re-liable Horizontal Rig & Equipment design acquired by Vermeer. High-torque, low-speed hydraulic motors power the rotary and carriage drives. On the rotary drive, a single through shaft motor turns the drill string and downhole tooling. The floating top vise is mounted to the carriage assembly and grips the drill rod directly in front of the quill, helping prevent rod wrap or windup when breaking out of the upper joint. A built-in float prevents premature wear to the drill-rod threading during upper joint makeup and breakout. RS#137

32 North American Pipelines | DECEMBER 2008 trenchlessonline.com

1234567891011

1213141516171819202122

2324252627282930313233

3435363738394041424344

4546474849505152535455

5657585960616263646566

6768697071727374757677

7879808182838485868788

8990919293949596979899

100101102103104105106107108109110

111112113114115116117118119120121

122123124125126127128129130131132

133134135136137138139140141142143

144145146147148149150151152153154

155156157158159160161162163164165

166167168169170171172173174175176

177178179180181182183184185186187

188189190191192193194195196197198

199200201202203204205206207208209

210211212213214215216217218219220

221222223224225226227228229230231

232233234235236237238239240241242

243244245246247248249250

1. OUTSIDE CONTRACTING FIRMS

Utility Contractor Distribution Contractor Road Boring/ Directional Drilling Contractor

Tunneling Contractor Pipeline Contractor Cable Contractor General Contractor Other; Specify:

__________________________

2. ENGINEERING FIRMS Construction Geotechnical Environmental Pipeline Other; Specify:

__________________________

3. GOVERNMENT/PUBLIC WORKS

Water and Sewer Gas and Electric Other; Specify:

__________________________

4. UTILITY COMPANIES Water and Sewer Electric Gas Cable/Telephone Other Utilities; Specify

__________________________

5. INDUSTRIAL FACILITY In-House Contracting In-House Construction In-House Engineering Other; Specify

__________________________

6. MFG/SUPPLIER Manufacturer Rehabilitation Systems Pipe Manufacturer Other; Specify

__________________________

7. OTHERS IN THE TRENCHLESS INDUSTRY

Consultant, Library Student/Professor Other; Specify

___________________________

What is your primary business at this location. (CHECK ONE)

How would you describe your primary trenchless activity? Rehabilitation New Installation Both

Would you like:1. Renewal notices by email? ............................................................. YES NO

2. Conference & Webinar info from Benjamin Media by email? ......... YES NO

3. Pre-screened 3rd party emails? ...................................................... YES NO

4. Renewal notices & other industry info from Benjamin Media? ...... YES NO

CHECK your job TITLE Owner/Partner President Vice President C.E.O. C.O.O./C.F.O. Manager/Coordinator/Administrator Supervisor/Foreman/Inspector Superintendent Engineer/Estimator/Consultant Director/Commissioner Safety Operator/Field

Personnel/Technician Other; Specify: _____________________________________________________

Reader Service & Subscription Card

Fax to: 330.657.2855

PLE

ASE

PR

INT

CLE

AR

LY

I want to renew/subscribe to TRENCHLESS TECHNOLOGY FREE* YES NO

Signature: _________________________________Date: _______________

TTNAP08 Expires 05/2009

*This offer is free in USA & Canada.

Name: __________________________________________________________Job Title: ______________________Company ____________________________Address: ________________________________________________________City: _________________________State/Province: ________ Zip/Postal Code: ______Country: ______________________Email: ______________________________Phone: _______________________Fax: _______________________________

Please allow 4 - 6 weeks for processing

Fax to 330.657.2855

Page 33: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

trenchlessonline.com DECEMBER 2008 | North American Pipelines 33

Business Cards

North American Pipelines Calendar

Advertisers Index

Circle 114 on Reader Service Card Circle 115 on Reader Service Card

Phone: 281-540-2992Cell: 832-474-2090Fax: 281-446-3683

William Huebel – PresidentRaymond Routhier – Sales

New and Premium Tubulars

Drill Pipe Drill Collars Rotary SubsHeavy Weight Kellys

www.fmctubular.com

[email protected] P.O. Box 3065Humble, TX 77347

February 3-5Deep Offshore Technology International Conference & ExhibitionErnest R. Morial Convention CenterNew Orleans, La.http://dot09.events.pennnet.com/fl/index.cfm

February 11-15 PLCA’s 61st Annual Convention Four Seasons Aviara Resort Carlsbad, Calif.www.plca.org

March 29-April 32009 International No-Dig ShowSheraton Centre TorontoToronto, Ont., Canadawww.nodigshow.com

February 17-19 4th Annual CGA Excavation Safety Conference & Expo Caribe RoyaleOrlando, Florida www.cgaconference.com

February 22-27DCA’s 48th Annual ConventionSheraton Maui Resort Maui, Hawaii www.dca-online.org

March 6-8 NUCA Expo ’09The Sheraton Phoenix Phoenix, Ariz.www.nuca.com

March 18-202009 Global Oil & Gas Pipeline Congress OrientalBay International HotelBeijing, China www.globalpipelinecongress.com/

April 20-22DCA 14th Annual Safety CongressGaylord Texan ResortGrapevine, Texas www.dca-online.org

April 20-24Pipeline Technology MessegeländeHannover, Germanywww.hannovermesse.de/pipeline_technology_e

April 26-30 PLCA-Canada’s 55th Annual Convention Fairmont Empress HotelVictoria, B.C., Canada www.pipeline.ca

July 22-26 DCA 21st Annual Mid-Year Meeting Spring Creek Ranch Jackson Hole, Wyo.www.dca-online.org

September 14-18 IPLOCA 55th Annual ConventionFairmont San Francisco San Francisco, Calif.www.iploca.com

October 6-8ICUEE Kentucky Exposition Center Louisville, Ky.www.icuee.com

Octover 5-924th World Gas ConferenceLa Rural Exhibition and Conference CentreBuenos Aires, Argentina www.wgc2009.com/

November 15-17 AEM Annual Conference Westin Diplomat Resort & SpaHollywood, Floridawww.aem.org

Advertiser ....................................................Page# ...................................RS#

Barbco ............................................................ 36 ..........................................123

Enduro Pipeline Services Inc. ........................ 21 ..........................................108

FMC Tubular ................................................... 33 ..........................................114

Forrer Supply Co. Inc. .................................... 33 ..........................................115

Gabe’s Construction Co. ............................... 9 ............................................106

Horizontal Technology Inc. ............................. 22 ..........................................138

Laney Directional Drilling................................ 25 ..........................................111

Michels Corp. ................................................. 5 ............................................101

Advertiser ....................................................Page# ...................................RS#

Ocala Instruments .......................................... 17 ..........................................105

Pemberton, Inc. .............................................. 29 ..........................................113

Schonstedt Instruments ................................. 27 ..........................................112

Sharewell L.P................................................... 11 ..........................................102

TT Technologies ............................................. 13 ..........................................103

Underground Tools Inc. .................................. 15 ..........................................104

Universal HDD ................................................ 35 ..........................................122

Vacuworx International .................................. 2 ............................................100

Page 34: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

34 North American Pipelines | DECEMBER 2008 trenchlessonline.com

HDD Rig Manufacturers

American Augers Inc.PO Box 814West Salem, OH 44287Ph: (800) 324-4930Fax: (419) 869-7425Web: www.americanaugers.com

Astec UndergroundLoudon, TNPh: (800) 527-6020Fax: (865) 458-8575Web: www.astecunderground.com

Barbco Inc.P.O. Box 30189East Canton, OH 44730-0189Ph: (800) 448-8934Fax: (330) 488-2022Web: www.barbco.com

Central Mine Equipment Company 4215 Rider Trail NorthSt. Louis, MO 63045-1106Ph: (314) 291-7700Fax: (314) 291-4880www.cmeco.com

Ditch WitchPerry, OKPh: (800) 654-6481Fax: (580) 572-3523Web: www.ditchwitch.com

Equipment Corp. of America (Hutte)6300 Foxley Rd.Upper Marlboro, MD 20770Ph: (301) 599-1300Fax: (301) 599-1597Web: www.ecanet.com

Herrenknecht AGD-77963 Schwanau, GermanyPh: +49 7824-3020Fax: +49 7824-3403Web: www.herrenknecht.com

Laney Machine Inc.PO Box 1299Humble, TX 77347Ph: (281) 987-2511Fax: (281) 987-2553Web: www.laneymachine.com

TT Technologies (Prime Drilling GmbH)2020 E. New York St., Aurora, IL 60504Ph: (630) 851-8200Fax: (630) 857-8299Web: www.tttechnologies.com

Tulsa Rig IronPO Box 880Keifer, OK 74041Ph: (918) 321-3330Fax: (918) 321-3339Web: www.tulsarigiron.com

Universal HDD1221 Flex CourtLake Zurich, IL 60047Ph: (847) 955-0050 Fax: (847) 955-0055 Web: www.unihdd.com

Vermeer Mfg. Co.PO Box 200Pella, IA 50219Ph: (641) 628-3141Fax: (641) 621-7777Web: www.vermeer.com

HDD Pipeline Contractors

A&L Underground8375 Melrose Dr.Lenexa, KS 66214Ph: (913) 438-2981Fax: (913) 438-3815Web: www.alunderground.com

ARB26000 Commercentre Dr.Lake Forest, CA 92630Ph: (949) 598-9242Fax: (949) 595-5526 Web: www.arbinc.com

Arby Construction19705 W. Lincoln Ave. New Berlin, WI 53146Ph: (262) 549-1919Fax: (262) 548-3655Web: www.arby-tech.com

Badger Drilling602 Lorn Ct.Orange Park, FL 32073Ph: (904) 272-2221Fax: (904) 276-1272

Cherrington Corp.7398 San Joaquin St. Sacramento, CA, 95820Ph: (916) 457-3040 Fax: (916) 457-5902 Web: www.cherrington.com

Crossing Company Inc., The1807-8th Street Nisku, AB T9E 7S8Ph: (780) 955-5051 Fax: (780) 955-5056 Web: www.thecrossingcompany.com

Davis Horizontal Drilling 7204 Timberlake Mustang, OK 73064Ph: (405) 376-2702 Fax: (405) 376-3807 Web: www.davisdrilling.com

Direct Horizontal Drilling Inc. PO Box 4027 Spruce Grove, AB, T7X 3B2, Canada Ph: (780) 960-6037 Fax: (780) 960-6038 Web: www.directhorizontal.com

Distribution Construction Co.2609 Greengate Dr., PO Box 16207Greensboro, NC 27416Ph: (336) 272-0775Fax: (336) 272-0776Web: www.distributionconstruction.com

Drilled Crossings Inc. PO Box 486LA Hwy. 31 Arnaudville, LA, 70512Ph: (337) 754-7802 Fax: (337) 754-7804

Environmental Crossings Inc. 868 Robinwood Ct. Traverse City, MI 49686Ph: (231) 929-1242Fax: (231) 941-7412 Web: www.ecihdd.com

Fornea Road Boring Co. Inc. 5650 Cole St. Jackson, MS 39206Ph: (601) 362-0139 Fax: (601) 982-5477

Frontier Pipeline11 East Superior Street, Suite 280Duluth, MN 55802 Ph: (218) 625-8478 Web: www.frontierpipeline.com

Gabe’s Construction Co. Inc. 4804 N. 40th St. Sheboygan, WI 53083Ph: (414) 459-2600 Fax: (414) 459-2608 Web: www.gabes.com

Harding Directional Drilling PO Box 506 Bryan, TX, 77806Ph: (979) 778-2691 Fax: (979) 778-3312 Web: www.hardingdrilling.com

HDD Co. Inc., The3161 Cameron Park Dr., Suite 215 Cameron Park, CA, 95682Ph: (530) 676-5705 Fax: (530) 676-3605Web: www.hddcompany.com

Henkels & McCoy Inc.985 Jolly Rd. Blue Bell, PA 19422Ph: (215) 283-7800 Fax: (215) 283-7939 Web: www.henkels.com

InfraSource Underground Services LLCChicago, ILPh: (630) 613-3300Web: www.infrasourceus.com

InterCon Construction Inc. 2880 Commerce Park Dr. Madison, WI 53719-5129Ph: (608) 227-7473 Fax: (608) 227-7470 Web: www.intercon-const.com

Isaacks Directional Drilling PO Box 1112 Aransas Pass, TX, 78335Phone: (361) 758-7297 Fax: (361) 758-8397

Kamloops Augering Ltd. 10085 Dallas Dr. Kamloops, BC, V2C 6W6Ph: (250) 573-7814 Fax: (250) 573-7815 Web: www.kamloopsaugering.com

Laney Directional Drilling Co. PO Box 1449 Humble, TX, 77347Ph: (281) 540-6615 Fax: (281) 540-6727 Web: www.laneydrilling.com

Mears Group Inc. 4500 N. MissionRosebush, MI 48878Ph: (800) 632-7727Web: www.mears.net

Michels Corp. 817 W. Main St., PO Box 128 Brownsville, WI 53006Ph: (920) 583-3132 Fax: (920) 583-3429 Web: www.michels.us

Midwest Underground Technologies Inc. 2626 Midwest CourtChampaign, IL 61822 Ph: (217) 819-3040Fax: (217) 819-3041Web: www.mutionline.com

Miller The Driller 125 E. University Ave. Des Moines, IA 50327Ph: (515) 266-2261 Fax: (515) 266-1349 Web: www.millerthedriller.com

Murphy Pipeline Contractors Inc. 11243-4 St. Johns Industrial Pkwy. S Jacksonville, FL 32246Ph: (414) 687-2145 Web: www.murphypipelines.com

Nella Drilling 118 Rue De La Gare St-Henri, QC G0R 3E0 Ph: (418) 882-2002 Fax: (418) 882-2721 Web: www.nella-drilling.com

Patterson & Wilder Construction CompanyP.O. Box 862794 Pelham ParkwayPelham, AL 35124Ph: (800) 543-5235Fax: (205) 664-8585 Web: www.pattersonwilder.com

Ranger Directional Inc. 200 Ida Rd. Broussard, LA 70518Ph: (337) 837-5447 Fax: (337) 837-2409 Web: www.rangerdirectional.com

Sheehan Pipe Line Construction Co.2431 East 61st Street, Suite 700Tulsa, OK 74136Ph: (918) 747-3471Fax: (918) 747-9888Web: www.sheehanpipeline.com

Southeast Directional Drilling LLC 2323 S. Hardy Dr. Tempe, AZ 85282Ph: (480) 222-4440 Fax: (480) 222-4443 Web: www.southeastdrilling.com

Sunland Construction Inc.2532 Aymond St., P.O. Box 1087Eunice, LA 70535Ph: (337) 546-0241Fax: (337) 546-0245Web: www.sunlandconstruction.com

Spring & Associates Inc. 29565 Chilcutt Rd. Easton, MD 21601Ph: (410) 822-0485 Fax: (410) 820-9096 Web: www.springandassociates.com

North American Pipelines Directional Drilling Directory

Page 35: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

Circle 122 on Reader Service Card

Page 36: As Economy Sputters, Oil & Gas Pipeline Markets Roll Onfrom 2007. IPLOCA executive secretary Juan Arzuaga directed staff activities during the convention. The IPLOCA Convention is

Circle 123 on Reader Service Card