The Oil & Gas Pipeline Industry remains one of the strongest competitors in the energy sector, as the number of major pipeline construction projects, upgrades and expansions continues to increase. The growing number of projects is primarily due to the intense development and drilling activities in the shale play producing areas, which have accounted for up to 33% of major construction activities and expansion projects. The most rapidly developing shale play is the Marcellus Shale, serving Pennsylvania, New York, Ohio and West Virginia; the Bakken Shale, serving North Dakota; and the Barnett Shale serving the Gulf Coast region. Because of the increase in Oil & Gas Production projects in the past year, more than 200 major pipeline projects have been announced, submitted for regulatory approval, or have been approved for development.

With the flurry of new pipeline construction projects that will be connecting gas supplies from shale play development areas to major markets, majors such as TransCanada Corporation and Pembina in Canada, and Williams Companies Incorporated, Dominion Resources Incorporated, CenterPoint Energy Incorporated and El Paso Corporation in the U.S. have invested in the construction of new pipelines, loops, laterals and expansion projects. Applications to FERC and state regulartory agencies have risen sharply in 2010, despite the economic recession of the past two years.

Moving into 2011 and beyond, pipeline companies in the U.S. and Canada are planning to spend about $5.5 billion to develop projects. Many companies are now able to begin projects that were shelved due to lack of shippers commitment or financing.

The oil and gas market is being influenced by the requirements for new pipelines to cope with the supply demand in the pre-recession global economy. The main challenge for the oil and gas industry remains the uncertainty of the market in the coming future and the ways that pipeline companies will maximize their investment in the construction and operation of new and existing pipelines. With this in mind, and with companies eyeing the huge unconventional gas industry, the overall level of investment in the pipeline industry is expected to increase as the natural gas pipeline industry continues to stabilize.

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