Published by Benjamin Media Inc. Volume 5 Issue 11 November 2012 ON THE COVER: Buster Gray commands the respect of his peers in the oil and gas pipeline industry. When his name was nominated for the inaugural Business Achievement Award, he was the unanimous choice by the NAOGP Editorial Advisory Board. 22 BUSINESS ACHIEVEMENT AWARD WINNER L.A. “Buster” Gray Honoring a career marked by integrity and passion. By Bradley Kramer FEATURES 34 26 2012 U.S. Natural Maintaining a MIG Gun Gas Pipeline Report Simple tips for getting the best welding The fourth installment of a quarterly performance from your equipment. report on recent and forthcoming By Andy Monk pipeline projects to develop natural gas infrastructure in the United States. 30 By Bradley Kramer Training for Integrity NACE promotes the importance of 38 corrosion control to pipeline integrity. Made to Order By Alysa Reich Unique equipment excels on a multi-million dollar natural gas project in Pennsylvania. By Tim Adkisson DEPARTMENTS COLUMNS 8 News 6 Editor’s Message 18 Project Roundup 20 IPLOCA Newsletter MARKETPLACE 42 Product Showcase 45 Business Cards 46 Calendar 46 Index of Advertisers North American Oil & Gas Pipelines (ISSN 2166-6334) is published twelve times per year. Copyright 2012, Benjamin Media Inc., 10050 Brecksville Rd., Brecksville, OH 44141 USA All rights reserved. No part of this publication may be reproduced or transmitted by any means without written permission from the publisher. One year subscription rates: complimentary in the United States, Canada and Mexico. Single copy rate: $10. Subscriptions and classified advertising should be addressed to the Peninsula office. POSTMASTER: send Changes of Address to North American Oil & Gas Pipelines, P.O. Box 190, Peninsula OH 44264 USA. Canadian Subscriptions: Canada Post Agreement Number 7178957. Send change address information and blocks of undeliverable copies to Canada Express; 7686 Kimble Street, Units 21 & 22, Mississauga, ON L5S 1E9 Canada North American Oil & Gas Pipelines Magazine is not affiliated or associated with North American Pipe Corporation of Houston, Texas. 4 North American Oil & Gas Pipelines | NOVEMBER 2012 napipelines.com Editor’s Message Publisher Bernard P. Krzys Honoring Achievement Associate Publisher Robert D. Krzys in the Industry Editor James W. Rush This is a very exciting issue. As North American Oil & Gas Pipelines has continued to expand, our staff wanted Associate Editor to find a way to honor those in the industry who have Bradley Kramer exemplified leadership and promoted innovation. As such, Contributing Staff Editors we have implemented the Business Achievement Award, Sharon M. Bueno which will be bestowed annually to an individual (or com- Andrew Farr pany) who has had a lasting and meaningful impact with- Keith Gribbins in the oil and gas sector. Pam Kleineke In an era that has seen unprecedented scrutiny of infrastructure projects, Kelly Pickerel from the public, activists and governmental agencies, the business of oil and Production Manager gas pipelines increasingly requires greater safety and integrity measures to en- Chris Slogar sure reliable facilities. Meanwhile, the industry faces a shortage of qualified Graphic Designers personnel, as an aging workforce inches closer to retirement without a new Sarah E. Haughawout crop of pipeline professionals to fill their ranks. Elizabeth C. Stull The inaugural winner of the Business of Achievement Award is Buster Gray, Marketing Director a 35-year veteran of the industry who embodies all the characteristics we Kelly Dadich looked for in a leader. His peers view him as fair-minded and knowledgeable, Regional Sales Managers while he displays unquestionable passion for pipelines. His resume speaks for Ryan Sneltzer itself, as he has served as an engineer, director and consultant on a number of Dan Sisko high-profile and innovative pipeline projects. At his latest position with MPS Constructors LLC, Gray has worked on Audience Development Manager TransCanada’s oft-mentioned Keystone XL project. Before that, he was in- Alexis R. White volved with building the U.S. portion of the Keystone mainline from the Ca- Web & Interactive Manager nadian border in North Dakota to Patoka, Ill., as well as the Cushing Extension Mark Gorman from Steele City, Neb., to Cushing, Okla. His career highlights also include a Conference Manager five-year stint in China, building some of the first large-diameter pipelines in Melanie Roddy that country. He has been a part of numerous “firsts” in the industry that have now become standard practice, including mechanized welding and the use of Editorial Advisory Board ultrasonic testing. Cortez Perotte While Gray expressed concern for a number of challenges facing the indus- Pipeline Product Engineer/Industry Representative, try, he stressed the importance of cooperation among all pipeline stakeholders Caterpillar Inc. in resolving a number of troubling trends. As he transitions into a new role at a Todd Porter pipeline engineering services company, Gray will no doubt continue as a leader Vice President of Business Development, New Century Software Inc. among the pipelining ranks. Michels senior strategic advisor and member of this magazine’s Editorial Ad- Eric Skonberg visory Board, Robert Westphal commended Gray for his fairness and trustwor- Principal Engineer, Trenchless Engineering Corp. thiness when dealing with various project stakeholders. Westphal’s relation- Don W. Thorn ship with Gray dates back to the late 1980s and has grown closer throughout President, Welded Construction LP the years. Kevin Waschuk “Generally speaking, Buster has always been a really good, honest person Vice President, Waschuk Pipe Line Construction Ltd. when dealing with people in the industry,” he says. “He has always been highly Bob Westphal respected throughout the industry.” Senior Strategic Advisor, Michels Corp. We’re proud to feature Mr. Gray on the cover of this issue, honoring him as Editorial & Advertising Offices our first-ever Business Achievement Award winner. 10050 Brecksville Rd Brecksville, OH 44141 USA (330) 467-7588 • Fax: (330) 468-2289 www.napipelines.com e-mail: [email protected] Reprints Wright’s Media Brad Kramer Ph: 877-652-5295 Associate Editor Fax: 281-419-5712 [email protected] BPA Worldwide Membership Applied for in February 2012 6 North American Oil & Gas Pipelines | NOVEMBER 2012 napipelines.com North America News Success of Lease Sale Proves Deepwater Drilling Remains Popular Drilling in the Gulf of Mexico has made a strong comeback since BP’s Deepwater Horizon incident in April 2010. Deepwater drilling is making a swift re- exploration activity in the region’s met by liquid fuel net imports of both covery in the U.S. Gulf of Mexico, and the shallow waters led operators to search crude oil and products has been fall- success of a lease sale in the central part further out at sea, and new deepwa- ing since peaking at over 60 percent in of the Gulf has helped to reaffirm inter- ter discoveries have re-established its 2005. In 2011, it averaged 45 percent, est from oil and gas giants, according to potential numerous times since then. down from 49 percent in 2010. The a report by industry experts GlobalData. The latest 216/222 lease sale in the U.S. Energy Information Administra- The new report shows that the deep- central Gulf of Mexico in June 2012 tion’s latest report, “Short-Term Energy water Gulf of Mexico continues to play was extremely successful, with the and Winter Fuels Outlook,” indicates a vital role in the matter of U.S. energy U.S. government receiving $1.7 billion that the total net import share of con- security, contributing substantially to from the winning bids. High oil prices, sumption will continue to decline to the country’s total oil production. The recent deepwater discoveries in the 41 percent in 2012 and to 39 percent in Deepwater Horizon rig explosion and area and pent-up demand for explora- 2013 because of the substantial increas- subsequent oil spill in April 2010 had tion tracts in the Gulf worked to make es in domestic crude oil production. If a massive impact on exploration and this lease sale a victory. In total, 56 oil the 2013 forecast holds true, it would production activities, as the U.S. gov- and gas companies submitted 593 bids be the first time the share of total U.S. ernment imposed a temporary mora- for 454 tracts in the Gulf, over a total consumption met by liquid fuel net im- torium and investments ground to a area of more than 2.4 million acres. ports is less than 40 percent since 1991. halt. Despite this, an incredible recov- Statoil Gulf of Mexico LLC present- Crude oil and natural gas produc- ery can be seen from new lease sales ed the highest recorded bid for a sin- tion in the deepwater Gulf of Mex- occurring over the last few months. gle lease, with a $157 million bid for a ico increased at an average annual The deepwater Gulf of Mexico block in the Mississippi Canyon area. growth rate (AAGR) of 1.6 percent boasts large-scale, commercially ex- The success of the lease sale proves during 2007-2011, from 504.1 mil- ploitable quantities of hydrocarbons that oil and gas companies still hold lion barrels of oil equivalent (MM- and forms part of the “golden trian- interest in the exploration of the Gulf, boe) in 2007 to 536.6 MMboe by the gle” with other deep offshore discov- and are confident about meeting the end of 2011. Production is expected eries in West Africa and Brazil. Explo- new regulations imposed in the wake to increase at an AAGR of 2.2 percent ration of hydrocarbons in the Gulf of the Deepwater Horizon rig tragedy. during 2011 to 2020, to reach 657.0 started in the 1970s, when declining The share of total U.S.