Published by Benjamin Media Inc. Volume 5 Issue 5 May 2012 ON THE COVER: John English (front) and Don Chaddock lead Horizontal Technology’s efforts to provide the best tooling and software for horizontal direc- tional drilling contractors. 22 Steering the Way Horizontal Technology Inc. provides a variety of tooling and services to pipeline contractors to ensure an accurate installation. By Bradley Kramer FEATURES 28 U.S. Oil Pipeline Report Crude oil reserves from Canada continue to drive pipeline construction in the United States. By Bradley Kramer 32 High-Tech Safety Software company HCSS helps pipeline contractors save lives by tracking jobsite performance. By Steve McGough 36 Catching the Leaks Integrity management has become a high priority in the pipeline industry amidst aging infrastructure. By Muthu Chandrasekaran 38 Drilling Across the Bay Laney Directional Drilling Co. completed back-to-back HDD shore approaches to cross Nueces Bay, near Corpus Christi, Texas. By Alan Snider DEPARTMENTS COLUMNS 10 News 6 Editor’s Message 20 Project Roundup 40 Product Showcase MARKETPLACE 46 Calendar 45 Business Cards 46 Index of Advertisers North American Oil & Gas Pipelines (ISSN 2166-6334) is published twelve times per year. Copyright 2012, Benjamin Media Inc., 1770 Main St., Peninsula OH 44264. USA All rights reserved. No part of this publica- tion 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 | MAY 2012 napipelines.com Editor’s Message Publisher Bernard P. Krzys Moving Right Along Associate Publisher Summer is just around the corner, which usually signals Robert D. Krzys the height of construction season, but the mild winter this Editor year has enabled pipeliners to get started early. The so-called James W. Rush “shale boom” and unprecedented domestic crude oil is driv- Associate Editor ing up demand for more pipeline capacity throughout North Bradley Kramer America. W H E N Y O U ’ R E S T U C K B E T W E E N A R O C K A N D A H A R D P L A C E According to a recent study for the Interstate Natural Gas Contributing Staff Editors Association of America (INGAA) Foundation, nearly $4 billion Sharon M. Bueno Andrew Farr is expected to be spent this year to construct pipelines transporting crude oil, refined STRAIGHTLINE HAS THE ULTIMATE SOLUTION. Keith Gribbins petroleum products and natural gas liquids (NGLs). The study projects $2 billion will Pam Kleineke be spent each year constructing liquids pipelines for the next 25 years, building an Kelly Pickerel Since StraightLine® Air Hammer Systems were made available to the market in June 2008, we have been piling up one average of 1,300 miles of new pipe and sustaining average annual employment of more than 22,000 people. Production Manager success story after another. Our customers have achieved amazing accomplishments including on-grade sewer bores, The demands to transport the newly discovered natural gas from shale deposits Chris Slogar will require the annual construction of nearly 2,000 miles of pipeline in the lower Graphic Designers easily navigating large elevation changes in critical bores, utilizing a small drill to complete solid rock road crossings and 48 states and Gulf of Mexico over the next 25 years, according to the study. That’s Nicole Davis tackling extremely hard granite. Not a week goes by without the report of another amazing jobsite story. Each success a 17 percent increase over current capacity. The study also predicts more than $250 Sarah E. Hayes billion of investment in the new lines. Elizabeth C. Stull further expands the diversity of projects that this system has conquered. In “The World Onshore Pipelines Market Report 2011-2015,” energy business an- Marketing Director alysts Douglas-Westwood forecast that $193 billion will be spent on onshore pipeline Kelly Dadich projects worldwide through 2015. Regional Sales Managers If hard formations are standing in the way of profits and you are ready to write your own success story, we invite you to So by most accounts, the pipeline construction industry is well poised for another Ryan Sneltzer contact us at 800.654.3484 or online at straightlinehdd.com to put our Air Hammer System to work for you today. period of growth, as seen right before the recession. Dan Sisko Meanwhile, TransCanada awaits a second chance at receiving a Presidential Per- mit from the U.S. State Department so the company can finally start building its Audience Development Manager Alexis R. White Keystone XL pipeline expansion from the U.S.-Canada border to Cushing, Okla. But lost in all the focus on Keystone is the fact pipeline construction is already experienc- Web & Interactive Manager ing strong growth. Mark Gorman “The liquids pipeline industry is making significant investments to construct new Conference Event Coordinator pipelines, expand capacity on existing lines, convert pipelines to carry different types Vicki Losh of products and reverse the flow of existing lines,” says Andrew Black, president of the Association of Oil Pipelines. “Fundamental changes in American and Canadian Editorial Advisory Board crude oil production and refining are creating demand for additional pipeline capac- Cortez Perotte ity in different regions or in different directions. Crude oil production is surging Pipeline Product Engineer/Industry Representative, in areas such as North Dakota, Montana, West Texas, New Mexico and Colorado. Caterpillar Inc. Changes in domestic refining capacity, including closures of some refineries in the Todd Porter Northeast, are creating the need for additional refined product pipeline capacity, as Vice President of Business Development, well. Production of NGLs is projected to increase 40 percent by 2016, including in New Century Software Inc. new states such as Pennsylvania, Ohio and West Virginia. Pipelines are needed to Eric Skonberg transport these important fuels and feedstocks to market.” Principal Engineer, Trenchless Engineering Corp. Check out our U.S. Oil Pipelines Report on page 28 for more insights on the prog- Don W. Thorn ress of projects to transport crude oil and related products to market. While Keystone President, Welded Construction LP XL represents a significant challenge for the industry, many other companies are Kevin Waschuk busy building pipelines across North America. Vice President, Waschuk Pipe Line Construction Ltd. We look forward to covering these and other projects as the busy construction Bob Westphal season rolls along. Senior Vice President, Michels Corp. Editorial & Advertising Offices 1770 Main St., P.O. Box 190 Peninsula, OH 44264 USA (330) 467-7588 • Fax: (330) 468-2289 www.napipelines.com Brad Kramer e-mail: [email protected] Associate Editor [email protected] Reprints Wright’s Media Ph: 877-652-5295 Fax: 281-419-5712 BPA Worldwide Membership Applied for February 2012 6 North American Oil & Gas Pipelines | MAY 2012 napipelines.com W H E N Y O U ’ R E S T U C K B E T W E E N A R O C K A N D A H A R D P L A C E STRAIGHTLINE HAS THE ULTIMATE SOLUTION. Since StraightLine® Air Hammer Systems were made available to the market in June 2008, we have been piling up one success story after another. Our customers have achieved amazing accomplishments including on-grade sewer bores, easily navigating large elevation changes in critical bores, utilizing a small drill to complete solid rock road crossings and tackling extremely hard granite. Not a week goes by without the report of another amazing jobsite story. Each success further expands the diversity of projects that this system has conquered. If hard formations are standing in the way of profits and you are ready to write your own success story, we invite you to contact us at 800.654.3484 or online at straightlinehdd.com to put our Air Hammer System to work for you today. North America News TransCanada Applies for Keystone XL Presidential Permit Pipeline Under Review of Nebraska Environmental Department Two weeks after submitting a new alternate route to the creased pipeline inspections and pipe that is buried deep- Nebraska Department of Environmental Quality, Trans- er in the ground. The Final Environmental Impact State- Canada Corp. resubmitted its application for a Presidential ment for the project issued in August 2011 concluded the Permit for the Keystone XL pipeline. incorporation of the 57 special conditions “would result Now, the company must wait for the U.S. State Depart- in a project that would have a degree of safety over any ment to approve the permit, submitted May 4, which other typically constructed domestic oil pipeline system would allow the project to move forward. TransCanada will under current code.” supplement its application for the pipeline from the U.S.- Keystone XL is in the national interest of the United Canada border in Montana to Steele City, Neb., with an al- States as it would create thousands of much needed con- ternative route in Nebraska as soon as that route is selected. struction and manufacturing jobs and allow Americans “The multi-billion dollar Keystone XL pipeline project to move closer toward achieving energy security, accord- will reduce the United States’ dependence on foreign oil ing the a TransCanada statement.