| Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise


Download our free Bridge Coating Systems eResource Book

Paint and Coatings Industry News

Main News Page

Pipeline Construction Boom Forecast

Thursday, March 8, 2012

More items for Program/Project Management

Comment | More

Long cooled by the recession, U.S. oil and gas pipeline construction is heating up and poised for a major comeback, with sustained demand for repairs, replacement and new construction, according to a new market forecast.

Construction will be fueled by investment in new domestic energy sources like gas shale and oil sands, pressure to repair and replace aging infrastructure, and recovery in the residential construction market, reports Oil & Gas Pipeline Construction in the US, a new five-year forecast by IBISWorld of Santa Monica, CA, the world’s largest independent publisher of U.S. industry research.

Looking Ahead…

Pursuit of natural gas has kept business flowing over the past five years, but the $39 billion industry’s fortunes are about to get even better, the report says.

 The Trans-Alaska Pipeline, circa 2005

 Luca Galuzzi -

The Trans-Alaska Pipeline, shown here in 2005, is part of the aging infrastructure that is expected to help drive a new boom in pipeline construction, repair and replacement.

Over the next five years, pipeline construction industry revenue is expected to grow at an average annual rate of 3.3%, far outstripping the current sluggish GDP rate of 0.6% per year.

Those gains should percolate through all facets of the industry: contractors who build, renovate and repair pipelines, refinery facilities and tanks; construction management firms; and special trade contractors.

…And Back

Pipelines are essential for transporting fuel supplies to households and businesses, and a surge of investment in gas and oil infrastructure construction has driven the market since the middle of the 2000s.

Skyrocketing energy prices and advances in extraction technologies pumped up domestic oil and natural gas production significantly, bringing demand for construction of the pipelines, tanks and other facilities and infrastructure to transport and store it, according to IBISWorld industry analyst Kathleen Ripley.

The pipeline industry sustained a number of setbacks from 2009 to 2011, as energy prices slumped, financing became more difficult, and the 2010 Deepwater Horizon disaster—the worst oil spill in U.S. history—clamped a moratorium on deep-sea drilling and cooled pipeline investment.

That should all change this year, however, as global energy demand boosts domestic investment in energy infrastructure, the report says.

Plenty of Players

Unlike many industries that are consolidating, the oil and gas pipeline sector is still fairly diverse, with even the largest players—Bechtel Corp., Fluor Corp. and Jacobs Engineering Group Inc.—accounting for a relatively small percentage of revenue among more than 2,000 businesses that employ nearly 150,000 people.

However, Ripley says, “The industry is more concentrated than many in the construction sector.”


Tagged categories: Construction; Contractors; Market forecasts; Pipeline; Pipelines; Tanks and vessels

Comment from Royce Gardner, (3/13/2012, 1:54 PM)

As an Alaskan Oilfield worker, I am excited about this article. I know this will create lots of new jobs for the state of Alaska and help us break free of foreign energy dependence.

Comment Join the Conversation:

Sign in to our community to add your comments.

SAFE Systems, Inc.
Enduroguard -
The Tough Cable
for a Tough Industry.

Reduce maintenance costs and down time, increase job site safety with Enduroguard Cable. Available exclusively from SAFE Systems. UL listed, flexible, abrasion resistant and cut resistant.

PPG Protective and Marine Coatings Group
Industrial strength performance in ONE can.

Now get the durability and protection of two components in one can: Amercoat® ONE, PSX® ONE and Sigmadur ONE.

Nationwide Overspray
Profession Overspray Removal Services

The Finest Name in Safe Overspray Removal. We specialize in removing all contaminants from any surface. Family Owned and Operated for 33 years! Fully insured. Satisfaction is guaranteed.

SSPC: The Society for Protective Coatings

Join SSPC and Enhance
Your Career !

Polyurethane and Polyurea Sprayed-On Protection

Buy POLYURETHANE or POLYUREA coatings and spray equipment for years of proven chemical resistance, water- and weather-proofing, and structural improvements.

Midsun Specialty Products
Stopaq 30+ Year Coatings

Use Stopaq corrosion prevention coatings on pipelines, field joints, tank chimes, structural steel and more. Learn more at

Sidewinder/Persyst Enterprises, Inc.
The Sidewinder Model M2 Solvent Recycler

Combat the rising cost of gunwash, thinners, acetone & more while drastically reducing waste disposal coat.

Chicago Corrosion Group
Vendor-neutral corrosion consulting

When reliability is paramount.
For more information,
call 877-516-9514

Clemco Industries Corp.
Powerful Protection in a Small Package

Mounts inside blast helmet, alerts operator to dangerous breathing-air condition by audible, visual, and vibratory alarms. Easily calibrated, battery operated.

Ethox Chemicals LLC
Ethoflex® ER instantly upgrades your epoxy!

The only epoxy additive that improves flexibility, corrosion resistance, toughness, and adhesion, without hurting pot life, cure time, or increasing VOCs.

Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker

EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us

© Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail