American Gas - June 2014 - (Page 10)

digest Continued from page 9 similiar bills are pending in 10 other states. Duke energy and Piedmont natural Gas have jointly issued a solicitation for proposals to build and operate a second major wholesale natural gas pipeline in north Carolina. Duke energy's increasing reliance on natural gas to generate electricity, coupled with Piedmont's growing customer demand, warrant investment in a pipeline to bolster reliability and diversity of suppliers, the companies said in the solicitation. north carolina is now served by a major wholesale interstate natural gas pipeline that runs through the state. The two companies seek an initial pipeline capacity of as much as 900 million cubic feet per day, with a target in-service date of late 2018. renaissance" was focused on exploration and production, with investments rising 46 percent from $243 billion in 2009 to $355 billion in 2013, reports John England, oil and gas leader for Deloitte. During that time, the midstream sector-which includes natural gas processing, storage, and transport-struggled to keep up with growing demands to move production from new regions or to increase flows from existing regions. But in 2013 spending on midstream infrastructure rose 263 percent, from $12.8 billion to $46.4 billion. One key reason: Before the shale boom, most domestic oil and gas supplies were in accessible areas tied to existing pipeline infrastructure. Now, many newfound oil and gas resources are in remote areas. Downstream capital spending by utilities and other local distribution companies has showed signs of ramping up. It increased 11 percent in 2013, to $24.7 billion, and 60 percent since 2010, when it was $15.5 billion. By contrast, upstream capital spending in North America hit a plateau in 2013, rising only $0.5 billion last year. "As we move into 2014, investments will continue to shift from the upstream sector to midstream infrastructure, refinery operations, and petrochemical facilities," said England in his report. "Upstream operators will focus on harvesting value from recent discoveries and acquisitions through more efficient operations and the application of new technologies." At the same time, merger and acquisition activity in the oil and gas sector was down 29 percent for the first half of 2013 versus the same period in 2012. This suggests that companies are focusing on maximizing the return on investments in existing projects and operations rather than seeking inorganic growth, said England. The Deloitte report identifies several challenges facing oil and gas companies. These include attracting new capital and managing cash flow; navigating government and regulatory uncertainties; and dealing with limited engineering, procurement, and construction resource capacity. Longer range, the industry faces a critical talent shortfall, with more than 50 percent of the oil and gas industry's workforce eligible for retirement in the next five to 10 years. -G.J. What is it that makes A.Y. McDonald the #1 Name in Gas Distribution products? It's A.Y. McDonald Pride - pride in our products, our service, and most of all, our people. It's over 150 years of knowing that every member of our company family takes pride in their job - from the people assembling our meter bars, to the customer service representatives who answer the phone when you have a question, to the engineers who design the most innovative products in the industry. Our pride is what sets us apart and makes us the #1 Name in Gas Distribution products. Tami Eastlick 15 Years of Service G A S VA LV E S | W AT E R W O R K S | P L U M B I N G VA LV E S | P U M P S A.Y. McDonald Mfg. Co. 800.292.2737 | FAX 800.832.9296 | sales@aymcdonald.com | www.aymcdonald.com 10 AmericAn GAs june 2014 http://www.aymcdonald.com

Table of Contents for the Digital Edition of American Gas - June 2014

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American Gas - June 2014