Phil Bogdanovich, CEO of Cipher Skin, USA, discusses the importance of incorporating new technologies to optimise pipeline maintenance.
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t has always been a matter of when, not if, a pipeline will fail. According to the Pipeline and Hazardous Materials Safety Administration (PHMSA), since 2001, there have been 12 507 pipeline incidents that have cost the United States nearly US$10 billion in damages. The implications are immense. In addition to product loss, fines, and legal fees, there are significant ecological and environmental impacts to consider. Oil and gas industry leaders must rethink their approach and pivot to strategies that can be climate-conscious and demonstrate environmental stewardship while maximising revenue opportunities. The biggest industry players are facing immense pressure from the public and shareholders alike to put environmental matters at the forefront of their business plans. Even ExxonMobil, at the request of its shareholders, added three climate activists to their board of directors in 2021, unseating three current members while forcing Exxon’s leadership to reassess its business strategy to align with global climate change endeavours.
Environmental hazards of pipeline mismanagement Crude oil spills create lasting environmental and economic hardship, even after the cleanup. The 2010 Kalamazoo River Oil Spill resulted in an estimated 1 million gallons of diluted bitumen leaked. Enbridge was fined US$3.7 million and paid US$177 million in penalties and improved safety measures. The cleanup totaled over US$1.21 billion. In 2019, the Keystone Pipeline caused approximately 383 000 gal. of crude oil to spill into a North Dakota wetland, becoming the second large leak in two years on top of a handful of smaller leaks since the pipeline first opened in 2010. With the move to include activists on Exxon’s board and Chevron’s recent push for a carbon-cutting plan earlier this year, it is clear companies are finally understanding that consumer preferences have shifted in a major way. They want to work with companies that are doing all they can to be environmentally friendly and are mindful of the impact they are having on future generations. BP has also gone on the offensive and evolved into a more environmentally conscious company, running various climate-focused campaigns and publicly sharing sustainability
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