New pipeline construction is taking place at a record pace to meet rising energy demands, driving steel prices to a historic high and making replacement pipe harder to come by. Worldwide, operators are building, planning, and studying the feasibility of some 91,101 miles of natural gas, crude oil, petroleum products and other hydrocarbon pipelines. The total represents a 30% increase over last year (69,839 miles in 2006), and points to a significantly revived level of international construction activity (Table 1). Natural gas continues to drive the bulk of the activity, accounting for 65,864 mi, some 72% of the world total. In percentage terms, this is slightly down from last year's figure of 74.7%. This is because the amount of crude oil and other types of hydrocarbon lines - natural gas liquids, diluents, and condensate - has increased significantly. Nevertheless, crude oil and other hydrocarbons still place a distant second and third, with crude oil lines at 19,891 mi, some 21% of the world total; and other hydrocarbon lines at 4,996 mi, some 5.5% of the world total. Product pipelines represent only a fractional percent of the total, with just 350 mi (0.38%) being built and planned. The Far East continues to lead the world in pipeline construction activity with some 22,488 mi, nearly 24.7% of the world total. The United States places second in global construction activity, with 16,752 mi being planned and built, just over 18% of the world total. Other leaders in global pipeline construction activity include South America at 15,950 mi (17.5%) and Europe at 13,715 mi (just over 15%). While onshore work has expanded significantly, the amount of pipelines being built and planned offshore has fallen from 19,967 mi in 2006 to 11,199 mi in 2007, a decrease of nearly 44%. Europe continues to be the leader in offshore activity, at 4,441 mi (nearly 40% of the global offshore total); followed by the Far East at 3,755 mi (almost 34%). The South Pacific places third in offshore activity at 1,459 mi (13%); followed by South America at 596 mi (just over 5%); and the United States at 484 mi (just over 4%) (Figure 1 and Table 2).
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