PODUVAL

Deepa Poduval, principal consultant at Black & Veatch's Management Consulting Division, says the INGAA Foundation's earlier prediction is proving accurate. "I think we're on track" with what the study predicted, says Poduval, adding that, if anything, Bakken-formation gas and oil development is more robust than what was forecast two years ago.

Poduval says "the main trend" in pipeline construction will continue to be, on the supply end, connecting shale plays to existing interstate pipelines and, on the demand end, connecting those pipelines to gas-fired powerplants and expanding regional gas-pipeline networks.

She adds that the focus on pipeline integrity and safety is "a trend across the country. … We're getting smarter about assessing and monitoring" existing pipelines, some of which are now more than 50 years old.

The push to take advantage of shale gas, oil and NGL "will undoubtedly continue to result in newer pipeline infrastructure to transport these products to market," says Damon Hill, spokesman for the U.S. Dept. of Transportation's Pipeline and Hazardous Materials Safety Administration.

"PHMSA has made concerted efforts to stay a step ahead," Hill says, noting that the agency soon plans to issue a notice of proposed rule-making that would further expand requirements for gas-pipeline inspection and monitoring.

With all the pipeline engineering and construction work out there, two questions remain: How long will the good times last, and will there be enough skilled workers to keep up?

Santa, Poduval and others say it is increasingly clear that shale gas will play a critical role for the foreseeable future and that more pipelines will be needed as new shale plays are discovered and developed and new gas-fired plants are built. Poduval adds, however, that the amount of new pipeline work will surely vary from year to year. "It's still a cyclical business," she says. For now, at least, the available pipeline-construction workforce is sufficient, says Sheehan. "We're a union contractor, and we've been working with the unions to redouble our efforts on training. The unions are doing a great job with that."

Zach Bowler, vice president of Barnard Pipeline, a subsidiary of Bozeman, Mont.-based Barnard Construction Co., agrees that "Right now, the skilled labor pool is readily available," he says.

So far, labor prices are holding firm. Says Sheehan, "Non-union competition has been keeping a check on our wages, and we have three- or four-year contracts" that, he says, "generally run slightly above the inflation rate."