Faced with "economic realities of need and opportunity," today's pipeline industry can rely on one thing to meet and adapt to change: technology.
That was the message delivered by George W. Tenley Jr., president of Pipeline Research Council International Inc., to more than 900 attendees of the International Pipeline Conference & Exhibition late last month in Calgary.
Technology will "provide the foundation for the continuing viability of the pipe now in the ground and pipe and related facilities that must be built to meet growing and changing demand," he said. And it becomes even more important, given the new set of pipeline owners emerging from the financial turmoil of the past year.
Many of those new owners have no history of owning or operating pipelines; technology—its ability to "generate, organize, and interpret information"—must be incorporated into their business plans, said Tenley.
Pressures
On the business side, he said that pipelines are under constant pressure to be the cash cow that finances opportunities under a holding-company umbrella. Yet, "the traditional role of service and capacity provide remain unchanged."
On the operating side, Tenley said the industry must find how to extend the life of the infrastructure and thereby sustain and enhance its value. "The ability of the industry to make the case to the public and the regulator that pipelines, if properly maintained, have a substantially unlimited life, will be a strategic success factor," he said.
"There is simply less margin for design, operational, or financial error these days."
On the legislative and regulatory side, the industry faces unprecedented interest from legislative, regulatory, and public concerns about its commitment to safety.
Among the developed nations of the West, he said, the desire for a "zero-risk society" motivates the public, their elected representatives, and regulators to implement "increasingly stringent operating and integrity-assurance requirements."
Pipelines must bear these costs with capital that would otherwise be available for system expansions but instead is "being siphoned off by the operating costs required for system maintenance."
Technology development
Pipeline technology development, especially in terms of system integrity and reliability, said Tenley, will be determined by two forces:
•Responding to and managing increasing public and governmental scrutiny. As the industry and regulators have sought a consensus on what is needed to ensure the integrity and reliability of pipelines and the public's confidence in their operation, the "focus is turning to technology for solutions."
•Assuring the "most efficient, credible, cost-effective, and productive means to identify, prioritize, and fund technology needs for enhanced pipeline integrity and reliability."
