Oil and gas pipeline companies in North America are getting serious about safety. As if they were not already.
But threats of massive fines and jail sentences will focus the mind. And that's what a few companies and their employees have been facing in the past couple of years.
Oil & Gas Journal readers do not need to be reminded of the deadly explosions in New Mexico and Washington states, nor of the lesser spills and ruptures across the US in recent years.
These have occurred even as companies have been spending hugely on sophisticated monitoring and emergency systems and on better training. And they have more planned, as a matter of good practice and in response to some new US regulations.
So, along come some major industry associations earlier this year with a structure and some plans to support those companies. Coordination is always helpful.
What's happened
Last winter, the Association of Oil Pipelines and the Interstate Natural Gas Association of America announced a research alliance with Pipeline Research Council International Inc. All are based in Washington, DC.
In 2002, PRCI celebrated 50 years of existence and, according to current Pres. George W. Tenley Jr., member companies over those years have contributed more than $185 million towards research, development, and application of pipeline technology.
In late 2002, PRCI consisted of 23 transmission companies from the US, Canada, Europe, and the Middle East. But the alliance with AOPL and INGAA represents a major expansion of its scope and elevates industry's efforts to make systems safer and more reliable.
Specifically, major AOPL member companies that have come aboard are Buckeye Pipeline Co., Chevron Texaco Pipeline Co., Colonial Pipeline Co., ConocoPhillips Pipeline Co., Enbridge Inc., Explorer Pipeline Co., Marathon Ashland Pipeline Co., and Texas Eastern Products Pipeline Co.
These joined three oil pipelines already PRCI members: BP PLC, ExxonMobil Pipeline Co., and Shell Pipeline Co. LP. Oil pipeline membership now makes up 40% of PRCI.
Bolstering this alliance is the participation in PRCI of the Gas Technology Institute, Des Plaines, Ill., widely recognized as the leading pipeline and natural gas research outfit in North America.
Alliance of these forces specifically targets improved collaboration in safety research and development. AOPL stated it would contribute almost $1.5 million, "money that is above and beyond companies' individual research expenditures."
Work will proceed under a planned $15 million/year technology program "designed to enhance safety and operational excellence," according to an account prepared for OGJ by Richard Bird, group vice-president for Enbridge, and Tim Felt, president of Explorer. The two have headed AOPL's own research and development team.
Work of this group led to planning for the collaboration with PRCI and INGAA.
Bird and Felt said that discussions among the three organizations "centered on the need to revamp the PRCI business plan, redefine governance, and identify funding sources.
"New processes would be required to accommodate greater collaboration by oil and gas pipelines.
"The business plan would…recognize a new PRCI, founded on a renewed commitment by all parties. AOPL and its larger members agreed to join and provide a 3-year commitment…."
By yearend 2002, AOPL had surpassed its initial goal of achieving direct membership in PRCI for six member companies plus membership for AOPL. One element in this success, said Bird and Felt, was companies' interest in working with the US Office of Pipeline Safety.
"AOPL members agreed that both R&D collaboration within the industry and a solid presence in PRCI would provide oil pipeline companies with the opportunity to guide spending by OPS toward the most productive areas," they said.
What's next
In a presentation to AOPL, Tenley said PRCI sought expansion for a "wide-ranging, coordinated, and sustainable pipeline R&D program (that) would complement government plans for pipeline safety and integrity," contribute to public confidence, and "become aUtechnology asset base and resource for industry and government."
Boil down the rhetoric, and you have what we all hope will be the result: Safer, more-reliable pipeline systems and greater understanding by the general public—and its elected representatives—of how vital are petroleum and natural gas pipelines to economic well-being.
Such industry cooperation and coordination likely represent a watershed in the history of energy transportation, not only for North America but also for the rest of the world.
Safety and dependability are the keys.