Significant finance is flowing into the midstream segment of the industry as operators are investing considerably in expansion projects to connect new oil and gas supplies with markets. Another part of the surge in investment is a result of the maintenance required to upgrade or replace ageing assets that present the industry with risks as well as lost productivity. Much of the pipeline infrastructure around the world is more than 20 years old, causing pipeline operators to take added precautions to ensure safety when transporting increased production volumes.
While oil and gas pipeline operators are investing heavily in new technologies for better control, inspection and maintenance of assets, an estimated 10 billion devices are linked to the industrial Internet, the global network connecting people, data and machines. These trends foreshadow the future for the pipeline industry. Given the capital investments the industry is making to expand or upgrade pipeline networks, a challenge for operators is to take advantage of emerging technologies that make pipelines safer, more efficient and more agile in terms of routing production where and when needed.
First published in Petroleum Review December 2014. Licensed for print and electronic distribution to Accenture Energy and sites owned by Accenture Energy exclusively. © This information is the intellectual property of the Energy Institute. Any unauthorised copying, republication or redistribution of Energy Institute material, either in print or electronically, wholly or in part, is expressly prohibited without the prior written consent of The Energy Institute. The Energy Institute logo together with the EI letters are registered trademarks of the Energy Institute. For additional information on the Energy Institute, please visit www.energyinst.org.
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