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The Oil & Gas Pipelines Market Analysis 2010-2020

Global oil & gas pipeline market: $55.1 billion industry forecast in 2010

Global spending in 2010 on oil and gas pipelines will total $55.1bn. Media and public focus on pipeline sabotage by militants and leakage has brought oil and gas pipelines increasingly to the fore, with poor PR effects, and expensive, time-consuming costs. Nevertheless, despite supply requirements driving demand, the oil and gas pipelines market will have to contend with other restraints over the 2010-2020 forecast period - most notably, uncertainty over the state of the global economy.

The oil and gas pipelines market is being influenced by two factors. The requirements for new pipelines to cope with the supply demands in the pre-recession global economy were clearly seen. However since the global downturn in industry and manufacturing, there is now sufficient pipeline capacity again to service the current consumption and the present economic climate is restricting spending on new oil and gas pipelines around the world, but particularly in the US and the UK.

As the economy picks up again, the demand will start to out-pace supply, leading to high market pricing and increased costs of materials from manufacturing, meaning that the cost of new pipeline projects will also rise. The main challenge for the oil and gas pipelines industry therefore remains the uncertainty of the market and how to maximise value for money in the construction and operation of new and existing pipelines.

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