Watching Government: ASCE's troubling report card

March 20, 2017
The American Society of Civil Engineers (ASCE) gave US transportation systems barely a passing grade, D+, when it issued its 2017 Infrastructure Report Card on Mar. 9. Energy systems received the same mark, with potential problems looming for electricity as well as oil and gas. 

The American Society of Civil Engineers (ASCE) gave US transportation systems barely a passing grade, D+, when it issued its 2017 Infrastructure Report Card on Mar. 9. Energy systems received the same mark, with potential problems looming for electricity as well as oil and gas.

"Since 2013, oil and gas pipeline construction has continued at a fairly brisk pace to address new sources, with 2016-19 construction expected to modestly increase over the previous 5-year period. Despite recent construction, a large percentage of higher-pressure gas transmission lines were installed before 1980," it noted.

Refineries have operated at or above 90% of their throughput capacity since 1985, with limited new additions, the report noted. Existing facility upgrades have kept up with demand for gasoline, other fuels, and raw products for manufacturing, it said.

"Periodic failures in existing oil and gas pipelines and quality concerns in new construction point to the need for increased monitoring and maintenance spending. The concentration of processing plants on the shores of southern states creates significant exposure to future storm and climate change impacts," ASCE's report card said.

It said that permitting problems pose a particular challenge. Pipeline owners and operators' operations and maintenance spending will continue to climb as new regulatory guidelines aimed at increased safety are issued by states and the US Pipeline and Hazardous Material Safety Administration, and as pipeline miles increase.

"Periodic oil and gas pipeline leaks and failures present risks to the environment and the public. Most domestic oil refineries are situated along the coasts, subjecting them to risks from receding shorelines, climate change, and storm-related impacts," it pointed out.

The report card's recommendations included streamlining permit processes so critical new power lines and gas pipelines can be built promptly-with full consideration of alternate routes to ensure they are prudent and safe.

ASCE also called for a national "storm hardening" plan that considers transportation and distribution, refining, and power generation investments to withstand storms and restore energy services rapidly after hurricanes and similar events.

Further recommendations

Remote sensing and inspection technologies should be promoted to reduce energy system monitoring costs, with operation and maintenance spending focused on higher-risk components, it recommended. Performance-based regulations that mandate verification of pipeline integrity and increased investment in early correctives action for inadequate pipelines also should be implemented, the report card said.

In response, National Association of Regulatory Utility Commissioners Pres. Robert Powelson of Pennsylvania said ASCE's report card confirms that US infrastructure is near a crisis level. "We hope to bring members of ASCE into our national dialogue this year, which is focused squarely on infrastructure, innovation, and investment," he said on Mar. 10.

About the Author

Nick Snow

NICK SNOW covered oil and gas in Washington for more than 30 years. He worked in several capacities for The Oil Daily and was founding editor of Petroleum Finance Week before joining OGJ as its Washington correspondent in September 2005 and becoming its full-time Washington editor in October 2007. He retired from OGJ in January 2020.