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.