Market Trends of United States Oil and Gas Pipeline Maintenance, Repair, Overhaul (MRO) Industry
This section covers the major market trends shaping the US Oil & Gas Pipeline MRO Market according to our research experts:
Natural Gas Pipeline to Witness a Significant Growth
- Natural gas consumption increased significantly, reaching 30.28 trillion cubic feet in 2021, owing to the surging demand for natural gas in numerous industries, including transportation and power generation. The consumption is expected to increase in the coming years and will likely drive the oil and gas pipeline infrastructure significantly.
- By 2030, owing to environmental benefits and the quest for energy security in the United States, the demand for natural gas is expected to witness significant growth among all fuel types.
- In 2021, pipeline companies completed 14 oil and gas pipeline projects in the United States. This includes seven crude oil pipeline projects and seven hydrocarbon gas liquids pipeline projects. The LNG trade is expected to witness a significant increase globally, resulting in increased demand for the natural gas pipeline network.
- Further, in May 2022, the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) has begun accepting applications for its new Natural Gas Distribution Infrastructure Safety and Modernization Grant program. The program offers nearly USD 200 million in grants annually over the next five years to improve the safety of high-risk, leak-prone natural gas distribution infrastructure and create good-paying jobs, benefiting underserved communities in rural and urban areas.
- The development of new sources of natural gas, such as shale gas deposits, and the increasing the international trade of natural gas. Hence, these developments are expected to increase the demand for pipeline network expansion during the forecast period.
- Therefore, from the above points, natural gas segment is likely to witness significant growth during the forecast period.
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Increasing Oil and Gas Pipeline Projects
- Oil and gas pipelines find applications across all the three sectors in the oil and gas industry for transporting oil and gas. The upstream industry includes pipelines transporting crude oil and natural gas from the production site to a central collection point. They generally operate at low pressure and flow rate and are smaller in diameter than the transmission lines.
- The oil and gas supply in the United States is expected to exceed the existing transportation capacity, requiring expansions as well as the construction of new pipelines. Without new pipelines, the whole of the United States oil and gas pipeline infrastructure has to run at total capacity.
- As of 2021, there are ten petroleum pipeline projects in the United States currently in the construction phase, including new pipelines and expansions such as the Enbridge Line 3 Replacement project. Moreover, two projects have reached completion between January and June 2021. The number of natural gas pipeline projects is higher than the number of petroleum product pipelines in the United States.
- In February 2021, Virginia natural gas company RGC Resources Inc. announced that the joint venture is building the Mountain Valley gas pipeline worth USD 5.8 billion - USD 6.0 billion from West Virginia to Virginia. The pipeline is expected to be completed by mid-2022.
- In August 2021, the Dakota Access Pipeline (DAPL) Expansion project increased its capacity by 180,000 BPD along with the DAPL system by adding horsepower and upgrades at pump stations. The DAPL system runs from North Dakota through South Dakota and Iowa and ends near Patoka, Illinois, in the United States.
- Therefore, the increasing new oil and gas pipeline infrastructure projects are significant factors driving the market during the forecast period.
United States Oil and Gas Pipeline Maintenance, Repair, Overhaul (MRO) Report Snapshots
- United States Oil and Gas Pipeline Maintenance, Repair, Overhaul (MRO) Market Size
- United States Oil and Gas Pipeline Maintenance, Repair, Overhaul (MRO) Market Share
- United States Oil and Gas Pipeline Maintenance, Repair, Overhaul (MRO) Market Trends
- United States Oil and Gas Pipeline Maintenance, Repair, Overhaul (MRO) Companies
