Demand for onshore pipelines will increase in the United States, providing a positive outlook for the North American oil and gas industry, according to a new report conducted by Europe’s second largest steel producer, Tata Steel.
The study, produced by the company’s energy and power division, points to a rise in environmental concerns shifting energy demand towards natural gas and the continued growth in shale as the main drivers for increased investment in production and transport infrastructure.
The report also says the reduction in the price of natural gas combined with improved drilling technology will continue to maintain high oil production, resulting in further demand for pipelines.
Richard Broughton, Tata Steel’s commercial manager for energy pipelines, said: “US shale has been a game changer for the entire North American industry, potentially putting the US in a position to export energy for the first time. However, there is still a massive need for investment in infrastructure, particularly in production and transportation if this potential is to be realised.”