Pipeline Transportation and Storage

The midstream industry collects and transports crude oil, natural gas, refined petroleum products, and slurry. Companies across this industry provide the vital link between producers and refiners. This means moving oil and gas across miles and miles of pipelines to industrial, commercial and residential end-users.

A look at the flow of oil and gas across the industry

Pipelines, tank terminals, and oil tankers are all examples of the infrastructure required for transporting crude oil and gas.

Steps Involved in Transporting Oil and Gas

1st Step: Field Gathering

Oil and Gas from upstream production wells are sent through a network of small pipelines, usually 2 to 8 inches in diameter, to a central operating location. Treatment facilities and processing plants are the common destination. In the US alone, there are over 72,000 miles of crude system lines and another 2 million total miles of mainline and other natural gas pipelines.

Pipe Material	Total Miles
Plastic	689007.4
Steel	544307.8
Iron	29982.8
Other Materials	930.2
Copper	19.9

Most gathering and transmission pipelines are made of plastics and steel. Be sure to check out our Steel Pipe Manufacturing page.

	Main		Services		Total Miles	Operator Count
Calendar Year	Total Miles	Operator Count	Total Miles	Operator Count	Total Miles	Operator Count
2017	1,295,944.9	1352	921,057.7	1357	2,223,003.7	1372
2016	1,286,754.9	1353	923,563.1	1359	2,210,318.0	1374
2015	1,277,025.2	1345	913,129.8	136	2,190,154.9	1368
2014	1,266,408.7	1362	902,903.4	1371	2,169,312.1	1385
2013	1,255,383.6	1363	894,352.8	1370	2,149,736.3	1387
2012	1,247,706.4	1350	890,429.3	1357	2,138,135.8	1373
2011	123,176.6	1331	882,022.3	1333	2,121,198.9	1349
2010	1,229,884.1	1320	872,528.1	1318	2,102,412.2	1335

Pipeline infrastructure is increasing

Pipelines are primarily connected to the largest natural gas supply areas: Eagle Ford, Marcellus, Bakken, Utica, Uinta Permian, Haynesville, Fayetteville and Barnett. Natural gas production has increased rapidly in recent years, due to activity within the Utica and Marcellus Shale natural gas formations, increasing the need for additional field gathering pipes.

Example of Field Gathering

2nd Step: Field Processing

Surface facilities measure the production rate of oil, gas, and water that is produced. Most importantly, these facilities separate oil, gas and water from one another, while also removing impurities. Natural gas processing plants separate hydrocarbon gas liquids, non-hydrocarbon gases, and water from the natural gas.

Gas Processing Plant Capacity

Oil-Water Separators
3rd Step: Transportation

Involves transporting crude oil and natural gas over long distances.

Visual Map of US Natural Gas pipelines

Crude Oil Pipelines

A Look at the Several Methods Used for Moving Oil and Gas
- Pipelines
  
  Crude oil flows across the US’ vast pipeline transmission and distribution infrastructure. The Trans-Alaska pipeline carries an average of 1.8 million barrels of oil a day.
  
  In recent years, the Keystone Pipeline, a proposed extension, beginning in Hardisty, Alberta, and extending south to Steele City, Nebraska, has been a hotly debated discussion point. It will eventually transport oil from Alberta, Canada to refineries in the United States.
- Truck, Rail and Barge
  
  Oil is sent this way when there is little infrastructure, like in North Dakota’s Bakken area, or when more flexible options are preferred. In 2012, around 75% of Bakken’s oil was transported by truck. That number has been dropping in recent years, due to increased midstream infrastructure.
  
  Tank Cars carrying crude oil
Forth Step: Storage

Storage Terminal

Methods include field tank batteries, product bulk terminals, refinery tanks and holding tanks.

Natural Gas Storage

Natural gas is stored underground due to its’ temperature. Since natural Gas cannot be stored near or at the well, there are some slight differences in the process.

Excellent visual for natural gas processing and storage

Midstream Economy

In 1942, America was at war with the Axis Powers. Vessels carrying oil were sunk all across the Gulf of Mexico and eastern shores. To maintain the flow of oil, a massive pipeline was needed, providing oil from Texas to the east coast. The solution was the “Big Inch” pipeline, constructed with 24 inches in diameter pipeline! Without a gigantic pipeline, some historians question whether the Allies could have won the war. Following are pictures from the Library of Congress.

Welding on the “Big Inch” Pipeline

Gulf of Mexico Ships Sunk

East Coast Vessel Sunk

When external factors are not in play, like a war, the pipeline and transportation industry still finds itself stuck in the middle between producers and refineries. Strong demand from commercial, industrial and retail markets influences upstream production. However, when the economy slumps, there is less refining activity, meaning less oil is needed from producers. Both of these scenarios affect pipeline infrastructure, which in turn affects the number of workers needed for developing the pipelines.

Production dating back to 1950

The good news is the world needs more pipeline infrastructure to keep up with demand. The IEA concludes that another $640 billion investment is needed for E&P spending through at least 2040, an increase over the current $430 billion. A ramp up in pipelines and pipeline infrastructure will be on the rise for years to come.

Top Companies

Midstream companies are in the business of moving oil and gas around from point A to point B. Here are some of the largest:

US Companies

newbb电子	Total Employees
Koch Pipeline newbb电子	120,000
Phillips 66	14,600
Enbridge	11,000
Kinder Morgan	10,800
TransCanada	7,200
Enterprise Product Partners	6,800
Sunoco	6,500
Plains All American	5,000
Spectra Energy	5,700
Centurion Pipeline	2,900

Globally

newbb电子	Total Employees
Sinopec (China)	249,142
Transneft (Russian)	106,000

Transeft and China National Petroleum Corporation part of the IAOT, International Association of Oil Transporters, which supports oil transportation and storage on international, national and regional levels.

Occupations

Here is a look at some of the workers found across the industry and that are impacted when demand fluctuates: (Click an occupation to expand and learn more.)

Construction and Extraction Occupations

Perform tasks involving physical labor at construction sites. There are roughly around 2,600 of these workers found in Pipeline Transportation. You will find these workers using hand tools, repairing drilling equipment, and transporting materials. Helper, Laborer, Post Framer, and Construction Worker.
Control and Valve Installers and Repairers

Install, repair, and maintain mechanical regulating and controlling devices and other mechanical governors. There are a little over 1,700 of these workers in Pipeline Transportation. You will find these workers repairing mechanical control devices, lubricating mechanical parts, and installing electric meters. Common job titles for this worker are Control Valve Technician, Service Technician, and Valve Technician.

Employment of Control and Valve Installers and Repairers
Gas Plant Operators

Distribute or process gas by controlling compressors to maintain specified pressures on main pipelines. There are over 5,000 of these workers in Pipeline Transportation. You will find this worker operating plant equipment, monitoring flammable products, and controlling compressors. Job titlees for this worker are Gas Controller and Plant Operator.

Employment of Gas Plant Operators
Industrial Installation, Repair, and Maintenance Workers

Lubricates machines, changes parts, and performs machinery maintenance. Pipeline Transportation employs a little over 7,200 of these workers. You will find these workers cleaning machine and machine parts. Cleaning solvents, oil and metalworking fluids are a definite concern for these workers. Common Job titles for this position are Lubricator, Maintenance Man, and Oiler.
Industrial Machinery Mechanics

Worker activities include repairing, installing, and adjusting industrial machinery. There are around 3,100 of this occupation working in Pipeline Transportation. You will find these workers cutting and welding metal to repair broken metal parts. Job titles for this position are Fixer, Industrial and Master Mechanic.

Employment of Industrial Machinery Mechanics
Material Moving Workers

Help move materials across operations. There are around 3,400 of these workers in Pipeline Transportation. You will find these workers operating conveyors, transporting materials, and operating machines. Common job titles are Laborer and Operator.
Petroleum Pump System Operators

Operate petroleum refining or processing units. There are around 6,300 of these workers in Pipeline Transportation. You will find these workers monitoring gauges, opening valves to regualte the flow of oil, and operating manifold/pumping systems. Common Job titles for this position are Gauger, Head Operator, Pumper, and Refinery Operator

Employment of Petroleum Pump System Operators
Pipelayers, Plumbers, Pipefitters, and Steamfitters

Assemble, install, alter, and repair pipelines. There around 1,700 of these workers in Pipeline Transportation. You will find these workers hammering pipes, securing pipes, and cutting piples. Common job titles for this position are Pipe Fitter, Pipe Welder, and Steamfitter.

Employment of Pipelayers, Plumbers, Pipefitters, and Steamfitters
Welders, Cutters, Solderers, and Brazers

Use hand-welding, flame-cutting, hand soldering, and brazing equipment to weld/join metal components, fill holes, indentations, or seams of fabricated metal products. There are around 280 of these workers employed in Pipeline Transportation. You will find these workers welding components in flat, vertical or overhead positions. Common Job titles for this position are Maintenance Welder, Mig Welder, and Welder/Fabricator

Employment of Welders, Cutters, Solderers, and Brazers
Welding, Soldering, and Brazing Workers

Operate welding, soldering or brazing machines that weld, braze, or heat treat metal products. Pipeline Transportation employs around 290 of these workers. You will find these workers adding material to work pieces, joining metal components, and annealing finished work pieces. Common Job titles for this position are Fabricator, Mig Welder, Spot Welder, Fitter-Welder, and Braze Operators.

Safety

Safety is the number one priority on any pipeline job site, as there are endless worksite hazards. Numerous activities pose a risk, from welding pipes, cleaning pipes and falling objects.

The Pipeline industry ranks as the second most hazardous Oil and Gas sub-industry, when compared to the Oil Extraction sub-industry and Refineries sub-industry. Thankfully, though, the incidents per 100 employees are much lower than other industrial industries. This is a testament to the value placed on working safely across pipeline worksites.

"When you gamble with safety, you bet your life.""
Anonymous

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Common Pipeline Transportation and Storage Hazards

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Abrasive Handling

Workers transport many materials and move a lot of drums constructing pipelines. Heavy-duty wearing gloves are all these workers require!

Learn More About Abrasive Handling Protection

Common Applications:

Material Moving workers transporting materials across worksites.

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