Can Better Pipeline Management Influence Financial Performance?

By: In: Energy On: Mar 03, 2014

In the first week of December, 2013, “tiny pipeline cracks” were reported in the massive Kashagan oil field in Kazakhstan, operated by Royal Dutch Shell (NYSE: RDS-A), the largest oil and natural gas company in Europe.  The stock price of Royal Dutch Shell fell about a dollar a share on the news, from a high of $69.86 on Dec. 2 to a low of $68.29 on December 5th.   If a pipeline leak can result in the loss of more than $3 billion in market capitalization for Royal Dutch Shell, the second biggest energy company in the world, imagine what it can do to a smaller company with much more limited operations.

However, these losses could be even greater.

If an investigation reveals that ineffective materials or processes were used during construction, it may be necessary to replace many segments of the pipeline.  That could be a significant financial setback and possibly have a negative impact on the company’s overall strategic plan.  A robust pipeline integrity management program is vital and can be used in strategic communications to calm the financial communities and prevent losses in market value.

Pipeline Integrity and Energy Compliance:

It makes good sense to ensure your pipeline records are ‘traceable, verifiable and complete’ – and do it today.  Most pipeline operators have a pipeline integrity management program in place and have invested in sophisticated applications to manage the digital information related to their program. However, many operators still have legacy records, including ‘as built,’ maintenance and modification records – and other legacy documents – that have not yet been collected, imaged, indexed and ingested into their electronic application.

Iron Mountain’s Pipeline Integrity Management solution assists our oil pipeline customers with the collection, organization, conversion and uploading of critical physical pipeline records, regardless of size or format, and regardless of where they are located, even out in the field and can deliver documents to any PIMS or GIS system, or any other in-house electronic application.

We can help you get the maximum value from your program – including the communications value.

  • 2013 | 2014 Information Governance Benchmarking Survey for the Oil and Gas Industry

← The Pipeline to RIM Outsourcing: How Oil and Gas Win by Outsourcing Unconventional Drilling Drives Need for Improved Oil and Gas Records Management →

Leave A Comment

*

About the author

Vickie Malis

Vickie is a Director of Product and Solutions Marketing, focused on Document Management Solutions and is the marketing lead for Life Sciences industry solutions. She has held senior B2B marketing positions in technology and business services at companies that include Kodak, Dragon Systems (Nuance Communications) and eCopy (Nuance Communications). Vickie brings to her marketing career many years of experience in healthcare, in both advanced nursing practice and administration in trauma, critical care and neurosurgery. She holds a Bachelor of Science degree from Indiana University, a Master of Science degree from the University of Cincinnati and an MBA from Columbia University.