www.ContinuumCapital.net American Pipeline Contractors Association (APCA) Workforce Size and Union/Merit Shop Split Continuum Capital October 2025 APCA MARKET PENETRATION RESEARCH AMERICAN PIPELINE CONTRACTORS ASSOCIATION
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Table of Contents Engagement Objective, Hypothesis, & Deliverables.…………………………..3 Executive Summary…………………………………………………………….4-10 Conclusions, Findings, & Observations..…………………………………..11-103 1. Summary Conclusions....…………………………………………………………….....12-27 2. Market Size by Workforce...…………………………………………………………….28-50 3. Market Size Drivers.....…………………………………………………………….........51-63 4. Market Size by Mileage....……………………………………………………………....64-72 5. Market Size by Spending....…………………………………………………………….73-80 6. Alternative Sources of Workforce Size & Dynamics.....……………………………...81-89 7. Unionization Dynamics.....……………………………………………………………..90-103 Appendices - Research Methodology..……………………………………104-106 About Continuum…………………………………………………………….107-112 2
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Engagement Objective & Deliverables Engagement Objective: – Establish the market penetration of APCA member companies - total number of union versus merit shop employees in gas & liquid pipeline transmission markets Engagement Hypothesis: – Since 2010, the majority (more than 50%) of the market growth in spending on gas & liquid pipeline transmission work went to merit shop contractors. Engagement Deliverables: 1. Gas/Liquid Pipeline market size measured by workforce 2. Gas/Liquid Pipeline market size measured by capital construction spending 3. Establish market penetration of union and merit shop contractors 3
www.ContinuumCapital.net American Pipeline Contractors Association (APCA) Workforce Size and Union/Merit Shop Split Continuum Capital October 2025 Executive Summary AMERICAN PIPELINE CONTRACTORS ASSOCIATION
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 9.4% 15.6% 8.8% 13.3% 56.5% 49.4% 43.3% 29.9% 30.9% 48.6% 25.4% 21.0% 90.6% 84.4% 91.2% 86.7% 43.5% 50.6% 56.7% 70.1% 69.1% 51.4% 74.6% 79.0% 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Mileage Workforce Size Gas T, HL, & Gath. Mileage Union Workforce Size Merit Workforce Size Phase 1 – 2000 to 2007 Phase 2 – 2008 to 2019 Phase 3 – 2020 to Present Executive Summary (1 of 6) 2008/2009 peak mileage primarily captured by union contractors. 2014, 2017, and 2019 peak mileage primarily captured by merit shop contractors. Beyond 2010, merit shop firms picked up more peak workforce and lost less trough workforce. 5 Interpretive Note: Union and Merit Shop Workforce size lines are not stacked. Source: Propriety Continuum analysis and modeling of workforce size; Propriety Continuum analysis of PHMSA raw data,
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Executive Summary (2 of 6) Summary Talking Points 1. 2008/2009 peak mileage primarily captured by union contractors. 2. 2014, 2017, and 2019 peak mileage primarily captured by merit shop contractors. 3. Beyond 2010, merit shop firms picked up more peak workforce and lost less trough workforce than union firms. 4. Political leadership yields a mixed effect on transmission, hazardous liquid (HL), and gathering construction activity. The Biden administration has been very effective at curtailing activity in this market sector. 5. 2000 to 2023 State workforce growth, in percentage terms, is concentrated in northern plains, mountain west, Texas, and south where flexible energy policy typically exists. 6. Merit shop workforce size trending up since 2010 trough. 6
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Executive Summary (3 of 6) Workforce Myths Debunked Myth – Union trade availability, supervision availability, training resources, trained workforce, large equipment availability, safety performance, quality compliance performance, production performance, and owner preference are higher versus merit shop contractors. Debunked – Merit shop trade and supervision availability exceeds union availability. – Merit shop training resources and trained workforce equals or exceeds union standards. – Merit shop large equipment availability and access exceeds union availability and access. – Merit shop Safety, Quality, and Production performance equals or exceeds union performance. – Merit shop owner preference is increasing versus union preference. 7
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Executive Summary (4 of 6) Political leadership yields a mixed effect on transmission, hazardous liquid (HL), and gathering construction activity. The Biden administration has been very effective at curtailing activity in this market sector. 8 Interpretive Note: Natural Gas unit cost increased by 10x for easier comparison of volatility relationship to accelerating and decelerating new construction activity. Source: Propriety Continuum analysis of PHMSA raw data, US Energy Information Administration. $0 $20 $40 $60 $80 $100 $120 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Unit Cost Barrels & Million Btus ($) New Trans., HL, Gathering Mileage Gas Transmission Hazardous Liquid Gathering Crude Oil Natural Gas (10x)
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Executive Summary (5 of 6) 9 Washington Oregon Montana California Arizona Wyoming Nevada Idaho Utah Colorado New Mexico Texas Oklahoma North Dakota South Dakota Nebraska Kansas Louisiana Arkansas Missouri Iowa Minnesota Wisconsin Illinois Indiana Michigan Ohio Kentucky Tennessee Florida Mississippi Alabama Georgia South Carolina North Carolina Virginia West Virginia Pennsylvania Maryland New York Maine Delaware New Jersey Vermont New Hampshire Massachusetts Connecticut Rhode Island 23-Year Workforce Size Percent Change from 2000 to 2023 – State workforce growth, in percentage terms, is concentrated in northern plains, mountain west, Texas, and south where flexible energy policy typically exists. Source: Propriety Continuum analysis of BLS raw data. 20% or more 10% to 19.99% 0% to 9.9% -19.9% to 0% -49.9% to -20% 50% or less
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Executive Summary (6 of 6) Merit Trade Workforce Split – Merit workforce size trending up since 2010 trough. – 2014, 2017, and 2019 peak mileage primarily captured by merit shop contractors. – Beyond 2010, merit shop firms picked up more peak workforce and lost less trough workforce. 10 Merit Field Position 2000 2023 23 Year Peak / Trough 23 Year Average / Median TM: Supervision 5,375 4,262 6,175 / 1,837 4,090 / 4,227 TM: Operators 12,168 9,649 13,980 / 4,160 9,259 / 9,570 TM: Laborers 13,685 10,852 15,722 / 4,679 10,414 / 10,763 TM: Teamsters or Trucking 1,521 1,206 1,747 / 520 1,157 / 1,196 TM: Welders & Helpers 11,933 9,462 13,710 / 4,080 9,080 / 9,385 Total Merit Workforce 44,682 35,431 51,333 / 15,276 34,000 / 35,140 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 10,000 20,000 30,000 40,000 50,000 60,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Mileage Merit Trade Workforce Split TM: Supervision TM: Operators TM: Laborers TM: Teamsters or Trucking TM: Welders & Helpers Gas T, HL, & Gath. Mileage Interpretive Note: “TM” refers to Trade Merit Employee Type Source: Propriety Continuum analysis of survey, interview, and industry data to develop and algorithm to estimate trade mixture as a function of pipeline workforce size.
www.ContinuumCapital.net American Pipeline Contractors Association (APCA) Workforce Size and Union/Merit Shop Split Continuum Capital October 2025 Conclusion, Findings, & Observations AMERICAN PIPELINE CONTRACTORS ASSOCIATION
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (1 of 16) Summary Talking Points 1. 2008/2009 peak mileage primarily captured by union contractors. 2. 2014, 2017, and 2019 peak mileage primarily captured by merit shop contractors. 3. Beyond 2010, merit shop firms picked up more peak workforce and lost less trough workforce than union firms. 4. Political leadership yields a mixed effect on transmission, hazardous liquid (HL), and gathering construction activity. The Biden administration has been very effective at curtailing activity in this market sector. 5. 2000 to 2023 State workforce growth, in percentage terms, is concentrated in northern plains, mountain west, Texas, and south where flexible energy policy typically exists. 6. Merit shop workforce size trending up since 2010 trough. 12
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (2 of 16) Workforce Myths Debunked Myth – Union trade availability, supervision availability, training resources, trained workforce, large equipment availability, safety performance, quality compliance performance, production performance, and owner preference are higher versus merit shop contractors. Debunked – Merit shop trade and supervision availability exceeds union availability. – Merit shop training resources and trained workforce equals or exceeds union standards. – Merit shop large equipment availability and access exceeds union availability and access. – Merit shop Safety, Quality, and Production performance equals or exceeds union performance. – Merit shop owner preference is increasing versus union preference. 13
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (3 of 16) Market Size by Workforce Conclusions – Long-haul, big inch, and transmission system expansion favored large union contractors. • 2008/2009 peak mileage primarily captured by union contractors. – Union capacity limitations and the geographic location of gas/liquid system capacity issues addressed by transmission and station work pushed activity toward merit shop contractors who beyond 2010 captured the majority of spending growth. • 2014, 2017, and 2019 peak mileage primarily captured by merit shop contractors. – Construction industry union membership has steadily declined from approximately 15% in 2000 to approximately 10% in 2023. • With each growth wave since 2008, merit shop contractors picked up a higher proportion of work and in the work slowdowns, lost less workforce than union firms. 14
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 9.4% 15.6% 8.8% 13.3% 56.5% 49.4% 43.3% 29.9% 30.9% 48.6% 25.4% 21.0% 90.6% 84.4% 91.2% 86.7% 43.5% 50.6% 56.7% 70.1% 69.1% 51.4% 74.6% 79.0% 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Mileage Workforce Size Gas T, HL, & Gath. Mileage Union Workforce Size Merit Workforce Size Phase 1 – 2000 to 2007 Phase 2 – 2008 to 2019 Phase 3 – 2020 to Present Summary Conclusions (4 of 16) Market Size by Workforce Conclusions (Continued) – Phase 1 – 2000 to 2007; Phase 2 – 2008 to 2019; Phase 3 – 2020 to Present 15 Interpretive Note: Union and Merit Shop Workforce size lines are not stacked. Source: Propriety Continuum analysis and modeling of workforce size; Propriety Continuum analysis of PHMSA raw data,
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (5 of 16) Market Size by Workforce Conclusions (Continued) – 23-Year Workforce Size Percent Change from 2000 to 2023 • State workforce growth, in percentage terms, is concentrated in northern plains, mountain west, Texas, and south where flexible energy policy typically exists. 16 Washington Oregon Montana California Arizona Wyoming Nevada Idaho Utah Colorado New Mexico Texas Oklahoma North Dakota South Dakota Nebraska Kansas Louisiana Arkansas Missouri Iowa Minnesota Wisconsin Illinois Indiana Michigan Ohio Kentucky Tennessee Florida Mississippi Alabama Georgia South Carolina North Carolina Virginia West Virginia Pennsylvania Maryland New York Maine Delaware New Jersey Vermont New Hampshire Massachusetts Connecticut Rhode Island 20% or more 10% to 19.99% 0% to 9.9% -19.9% to 0% -49.9% to -20% 50% or less
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (6 of 16) Market Size by Workforce Conclusions (Continued) – Merit Trade Workforce Split • Merit workforce size trending up since 2010 trough. • 2014, 2017, and 2019 peak mileage primarily captured by merit shop contractors. • Beyond 2010, merit shop firms picked up more peak workforce and lost less trough workforce. 17 Merit Field Position 2000 2023 23 Year Peak / Trough 23 Year Average / Median TM: Supervision 5,375 4,262 6,175 / 1,837 4,090 / 4,227 TM: Operators 12,168 9,649 13,980 / 4,160 9,259 / 9,570 TM: Laborers 13,685 10,852 15,722 / 4,679 10,414 / 10,763 TM: Teamsters or Trucking 1,521 1,206 1,747 / 520 1,157 / 1,196 TM: Welders & Helpers 11,933 9,462 13,710 / 4,080 9,080 / 9,385 Total Merit Workforce 44,682 35,431 51,333 / 15,276 34,000 / 35,140 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 10,000 20,000 30,000 40,000 50,000 60,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Mileage Merit Trade Workforce Split TM: Supervision TM: Operators TM: Laborers TM: Teamsters or Trucking TM: Welders & Helpers Gas T, HL, & Gath. Mileage Interpretive Note: “TM” refers to Trade Merit Employee Type Source: Propriety Continuum analysis of survey, interview, and industry data to develop and algorithm to estimate trade mixture as a function of pipeline workforce size.
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (7 of 16) Market Size Driver Conclusions – FERC approvals and commodity prices are the primary drivers of transmission and hazardous liquid construction activity. – Commodity prices and basin product takeout capacity are the primary drivers of gathering line construction activity. – Regulation and housing starts are the primary drivers of distribution construction activity. – Pipeline capacity continued to accelerate during the Obama administration when curtailing efforts remained largely focused at the National level and proved ineffective at stopping highly powerful market forces. The Biden administration was much more effective at curtailing efforts and environmental forces have moved to a more local blocking actions that have proved much more effective. 18
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (8 of 16) Market Size Driver Conclusions (Continued) – Market Size Driver: Policy • FERC approval for interstate pipeline activity is critical to future construction activity 1-3 years post approval. 19 Source: Propriety Continuum analysis of PHMSA raw data, FERC raw data on pipeline approvals. 0 500 1,000 1,500 2,000 2,500 3,000 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 FERC Miles Approved New Transmission Mileage Gas Transmission Miles Approved
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (9 of 16) Market Size Driver Conclusions (Continued) – Market Size Driver: Commodity Price • Peaks in commodity prices result in expansion of transmission, hazardous liquid, and gathering infrastructure. 20 Interpretive Note: Natural Gas unit cost increased by 10x for easier comparison of volatility relationship to accelerating and decelerating new construction activity. Source: Propriety Continuum analysis of PHMSA raw data, US Energy Information Administration. $0 $20 $40 $60 $80 $100 $120 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Unit Cost Barrels & Million Btus ($) New Trans., HL, Gathering Mileage Gas Transmission Hazardous Liquid Gathering Crude Oil Natural Gas (10x)
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (10 of 16) Market Size Driver Conclusions (Continued) – Market Size Driver: Political Leadership • Political leadership yields a mixed effect on transmission, hazardous liquid (HL), and gathering construction activity. The Biden administration has been very effective at curtailing activity in this market sector. 21 Interpretive Note: Natural Gas unit cost increased by 10x for easier comparison of volatility relationship to accelerating and decelerating new construction activity. Source: Propriety Continuum analysis of PHMSA raw data, US Energy Information Administration. $0 $20 $40 $60 $80 $100 $120 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Unit Cost Barrels & Million Btus ($) New Trans., HL, Gathering Mileage Gas Transmission Hazardous Liquid Gathering Crude Oil Natural Gas (10x)
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (11 of 16) Market Size by Mileage Conclusions – The Biden administration has been very effective at curtailing activity in this market sector via a series of local and Federal agency actions. – Transmission activity and gas distribution activity, measured by mileage, is slightly trending down over the timeline presented, primarily due to political, regulatory, and environmental pressures. – Transmission, Hazardous Liquid, and Gathering activity are highly volatile as measured by mileage. • Transmission has an underlying base of activity that is much more stable due to short-haul segments and stations, the long-haul portion of the market is responsible for nearly all of the volatility. 22
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (12 of 16) Market Size by Mileage Conclusions (Continued) – All New Construction Mileage • Gas distribution dominates mileage. • 30,000 to 45,000 miles are constructed nearly every year. 23 Source: Propriety Continuum analysis of PHMSA raw data. 0 10,000 20,000 30,000 40,000 50,000 60,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 New Trans., HL, Gather., Dist. Mileage Gas Transmission Hazardous Liquid Gathering Distribution
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (13 of 16) Market Size by Spending Conclusions – Construction Put In Place spending will accelerate during 2027 and 2028 at the end of the forecast timeline. – Gas distribution will continue slow and stable growth with greater support from the Trump administration. – Transmission and pipeline activity will accelerate more aggressively, particularly at the end of the forecast timeline and are divers of the projected growth. 24
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 35,475 40,537 36,217 37,393 39,181 39,266 46,349 40,180 40,496 42,496 45,854 47,046 48,158 49,783 52,929 55,887 7.9% 14.3% -10.7% 3.2% 4.8% 0.2% 18.0% -13.3% 0.8% 4.9% 7.9% 2.6% 2.4% 3.4% 6.3% 5.6% -15% -10% -5% 0% 5% 10% 15% 20% - 10,000 20,000 30,000 40,000 50,000 60,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 U.S. T&D Gas/Liquid % Change Source: Building permits, construction put in place, and trade sources. Continuum prepared forecasts for 2024-2028. Summary Conclusions (14 of 16) Market Size by Spending Conclusions (Continued) – Transmission Gas/Liquid & Gas Distribution Spending 25
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (15 of 16) Alternative Sources of Workforce Size & Dynamics Conclusions – There are no known resources available to establish pipeline construction workforce size or dynamics. The Bureau of Labor Statistics (BLS) collects data that can provide a guide and it contains information that does not segregate field construction specific position data. There are some segmented industry reports produced and they are each too broad or too narrow to be of any assistance. The only industry report found that proved somewhat helpful are a series of reports published by the US Department of Energy. These reports highlight energy industry employment and are pulled from raw data published by the BLS. These reports highlight the following regarding pipeline construction industry employment: – The figures reported include all staff at construction firms that reported to the BLS and far exceeds the size of the field forces. Continuum has estimated the pipeline field construction workforce of peak (59,000), trough (30,000), average over 2000 to 2023 (47,000), and median over 2000 to 2023 (49,000) which is approximately 1/3 the size of the workforce estimated by the US Department of Energy. 26 Energy Industry Segment T&D (Natural Gas) T&D (Petroleum) Storage (Natural Gas) Storage (Petroleum) Total Construction 108,712 40,466 537 1,194 150,909 Source: United States Energy & Employment Report (USEER) 2024, US Department of Energy, pg.158,160, and 162.
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Summary Conclusions (16 of 16) Unionization Dynamics Conclusions – Unionization membership rates across the country have continued to decline over the era studied. It is not yet clear if Biden’s efforts to increase unionization had the intended effect. – A recently negotiated special pricing structure by the UA for Texas and Oklahoma is designed to try and recapture lost union work in this geography. This effort confirms the higher capture ratio of merit shop contractors over the last 5-10 years and represents a union attempt to bring parity or perhaps recapture this previously lost work over time. – Continuum does not see any factor that exists presently or will exist in the future to change the historic trajectory of slow and gradual union membership decline. 27
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Agenda Engagement Objective, Hypothesis, & Deliverables Executive Summary Conclusions, Findings, & Observations – Market Size by Workforce – Market Size Drivers – Market Size by Mileage – Market Size by Spending – Alternative Sources of Workforce Size & Dynamics – Unionization Dynamics Appendices 28
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Market Size by Workforce Conclusions (1 of 4) Long-haul, big inch, and transmission system expansion favored large union contractors. – 2008/2009 peak mileage primarily captured by union contractors. Union capacity limitations and the geographic location of gas/liquid system capacity issues addressed by transmission and station work pushed activity toward merit shop contractors who beyond 2010 captured the majority of spending growth. – 2014, 2017, and 2019 peak mileage primarily captured by merit shop contractors. Construction industry union membership has steadily declined from approximately 15% in 2000 to approximately 10% in 2023. – With each growth wave since 2008, merit shop contractors picked up a higher proportion of work and in the work slowdowns, lost less workforce than the unions. 29
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Market Size by Workforce Conclusions (2 of 4) Phase 1 – 2000 to 2007; Phase 2 – 2008 to 2019; Phase 3 – 2020 to Present 30 Interpretive Note: Union and Merit Shop Workforce size lines are not stacked. Source: Propriety Continuum analysis and modeling of workforce size; Propriety Continuum analysis of PHMSA raw data, . 9.4% 15.6% 8.8% 13.3% 56.5% 49.4% 43.3% 29.9% 30.9% 48.6% 25.4% 21.0% 90.6% 84.4% 91.2% 86.7% 43.5% 50.6% 56.7% 70.1% 69.1% 51.4% 74.6% 79.0% 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Mileage Workforce Size Gas T, HL, & Gath. Mileage Union Workforce Size Merit Workforce Size Phase 1 – 2000 to 2007 Phase 2 – 2008 to 2019 Phase 3 – 2020 to Present
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Market Size by Workforce Conclusions (3 of 4) 31 Washington Oregon Montana California Arizona Wyoming Nevada Idaho Utah Colorado New Mexico Texas Oklahoma North Dakota South Dakota Nebraska Kansas Louisiana Arkansas Missouri Iowa Minnesota Wisconsin Illinois Indiana Michigan Ohio Kentucky Tennessee Florida Mississippi Alabama Georgia South Carolina North Carolina Virginia West Virginia Pennsylvania Maryland New York Maine Delaware New Jersey Vermont New Hampshire Massachusetts Connecticut Rhode Island 23-Year Workforce Size Percent Change from 2000 to 2023 – State workforce growth, in percentage terms, is concentrated in northern plains, mountain west, Texas, and south where flexible energy policy typically exists. Source: Propriety Continuum analysis of BLS raw data. 20% or more 10% to 19.99% 0% to 9.9% -19.9% to 0% -49.9% to -20% 50% or less
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Market Size by Workforce Conclusions (4 of 4) Merit Trade Workforce Split – Merit workforce size trending up since 2010 trough. – 2014, 2017, and 2019 peak mileage primarily captured by merit shop contractors. – Beyond 2010, merit shop firms picked up more peak workforce and lost less trough workforce. 32 Merit Field Position 2000 2023 23 Year Peak / Trough 23 Year Average / Median TM: Supervision 5,375 4,262 6,175 / 1,837 4,090 / 4,227 TM: Operators 12,168 9,649 13,980 / 4,160 9,259 / 9,570 TM: Laborers 13,685 10,852 15,722 / 4,679 10,414 / 10,763 TM: Teamsters or Trucking 1,521 1,206 1,747 / 520 1,157 / 1,196 TM: Welders & Helpers 11,933 9,462 13,710 / 4,080 9,080 / 9,385 Total Merit Workforce 44,682 35,431 51,333 / 15,276 34,000 / 35,140 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 10,000 20,000 30,000 40,000 50,000 60,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Mileage Merit Trade Workforce Split TM: Supervision TM: Operators TM: Laborers TM: Teamsters or Trucking TM: Welders & Helpers Gas T, HL, & Gath. Mileage Interpretive Note: “TM” refers to Trade Merit Employee Type Source: Propriety Continuum analysis of survey, interview, and industry data to develop and algorithm to estimate trade mixture as a function of pipeline workforce size.
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Market Size by Workforce Summary Findings & Observations Phase 1 – 2000 to 2007 defined by housing boom, limited growth in transmission, hazardous liquid, and gathering line miles; merit shop workforce already large and distribution focused while union workforce it starting to ramp up to 2008 peak. Phase 2 – 2008 to 2019 defined by financial crisis and fracking transformation driving the markets to 4 peaks in activity. The union workforce captured the majority of the first peak and the merit shop workforce captured more of the subsequent peaks. Phase 3 – 2020 to Present defined by COVID19 and precipitous drop in mileage activity. The merit shop workforce was able to maintain workforce more effectively than unions during this era. The union workforce was retained longer during the 2008/2009 financial crisis than the merit shop workforce. Post 2010, the merit workforce has lost less trades, percentage wise, versus the union workforce, in each downturn and has continued to grow in the face of shrinking pipeline mileage since 2019. Between 2000 and 2023, state workforce growth, in percentage terms, is concentrated in northern plains, mountain west, Texas, and south where flexible energy policy typically exists. The union workforce peaked at 26,000 in 2017 when it accounted for 49% of the total workforce; troughed at 4,300 in 2004 when it accounted for 9% of the workforce; exhibited a median workforce of 14,000. The merit workforce peaked at 51,000 in 2006 when it accounted for 87% of the total workforce; troughed at 15,000 in 2010 when it accounted for 51% of the workforce; exhibit a median workforce of 35,000. 33
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Study Era’s Defined (1 of 4) Phase 1 – 2000 to 2007; Phase 2 – 2008 to 2019; Phase 3 – 2020 to Present 34 Interpretive Note: Union and Merit Shop Workforce size lines are not stacked. Source: Propriety Continuum analysis and modeling of workforce size; Propriety Continuum analysis of PHMSA raw data, . 9.4% 15.6% 8.8% 13.3% 56.5% 49.4% 43.3% 29.9% 30.9% 48.6% 25.4% 21.0% 90.6% 84.4% 91.2% 86.7% 43.5% 50.6% 56.7% 70.1% 69.1% 51.4% 74.6% 79.0% 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Mileage Workforce Size Gas T, HL, & Gath. Mileage Union Workforce Size Merit Workforce Size Phase 1 – 2000 to 2007 Phase 2 – 2008 to 2019 Phase 3 – 2020 to Present
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Study Era’s Defined (2 of 4) Phase 1 – 2000 to 2007 – Defined by the following factors: • Housing boom reshaping markets across the country but concentrated in the South and Southwest from Virginia, down to the gulf coast, across to Arizona. • Distribution system growth geography favored merit shop contractors. • Routine transmission, hazardous liquid, and gathering activity at relatively stable level – 4000 to 6000 miles annually. – 2002 and 2006 peak mileage primarily captured by union contractors. • Growth in union workforce from 5,000 to 15,000 or annualized CAGR growth of 18% • Growth in merit shop workforce from 45,000 to 51,000 peak in 2005 or annualized CAGR growth of 2%. 35 Interpretive Note: Union and Merit Shop Workforce size lines are not stacked. Source: Propriety Continuum analysis and modeling of workforce size; Propriety Continuum analysis of PHMSA raw data, 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2000 2001 2002 2003 2004 2005 2006 2007 Mileage Workforce Size Gas T, HL, & Gath. Mileage Union Workforce Size Merit Workforce Size Phase 1 – 2000 to 2007
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Study Era’s Defined (3 of 4) Phase 2 – 2008 to 2019 – Defined by the following factors: • 2008/2009 financial crisis reshaping markets. • Hydraulic fracking revolution opened new and reinvigorated existing basins - growth in gathering systems favored merit shop contractors. • Long-haul, big inch, and transmission system expansion favored large union contractors. – 2008/2009 peak mileage primarily captured by union contractors. • Union capacity limitations and the geographic location of gas/liquid system capacity issues addressed by 36 transmission and station work pushed activity toward merit shop contractors who beyond 2010 captured the majority of spending growth. – 2014, 2017, and 2019 peak mileage primarily captured by merit shop contractors. • Decline in union workforce from 25,000 to 16,000 or annualized CAGR growth of <4%> • Growth in merit shop workforce from 19,000 to 40,000 or annualized CAGR growth of 7%. Interpretive Note: Union and Merit Shop Workforce size lines are not stacked. Source: Propriety Continuum analysis and modeling of workforce size; Propriety Continuum analysis of PHMSA raw data, 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2007 2009 2011 2013 2015 2017 2019 Mileage Workforce Size Gas T, HL, & Gath. Mileage Union Workforce Size Merit Workforce Size Phase 2 – 2008 to 2019
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Study Era’s Defined (4 of 4) Phase 3 – 2020 to Present – Defined by the following factors: • COVID19 reshaping markets and expectations. • Slowing commodity market dynamics, inflation, global disruption, conflicts restriction ease of trade, not yielding as much market driven pressure for pipeline construction activity. • Biden policies focused on rule making through agencies and environmental group local actions prove highly effective at slowing and stopping pipeline activity. • Routine transmission, hazardous liquid, and gathering activity dropped precipitously from 14,000 to 2,500 miles annually. – Merit shop contractors largely retained workforce while union workforce fell. • Decline in union workforce from 11,000 to 10,000 or annualized CAGR growth of <2%>. • Growth in merit shop workforce from 33,000 to 35,000 or annualized CAGR growth of 2%. 37 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2019 2021 2023 Mileage Workforce Size Gas T, HL, & Gath. Mileage Union Workforce Size Merit Workforce Size Phase 3 – 2020 to Present Interpretive Note: Union and Merit Shop Workforce size lines are not stacked. Source: Propriety Continuum analysis and modeling of workforce size; Propriety Continuum analysis of PHMSA raw data,
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Union Workforce Size 38 Source: Propriety Continuum analysis of survey, interview, and industry data to develop and algorithm to estimate pipeline workforce size. The union workforce increased from 5000 to 10,000 trades from ‘00 to ‘23 – Peak year is 25,000 trades – Average size is 13,000. The union workforce was retained longer during the 2008/2009 financial crisis. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0 5,000 10,000 15,000 20,000 25,000 30,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Construction Unemployment % Union Workforce Size & Mileage Union Workforce Size Gas T, HL, & Gath. Mileage Construction Unemployment %
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0 10,000 20,000 30,000 40,000 50,000 60,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Construction Unemployment % Merit Workforce Size & Mileage Merit Workforce Size Gas T, HL, & Gath. Mileage Construction Unemployment % Merit Workforce Size The merit workforce decreased from 45,000 to 35,000 trades from ‘00 to ‘23 – Peak year is 50,000 trades – Average size is 34,000. The merit workforce was laid off earlier in the 2008/2009 financial crisis. Post 2010, the merit workforce has lost less trades, percentage wise, versus the union workforce, in each downturn and has continued to grow in the face of shrinking pipeline mileage since 2019. 39 Interpretive Note: Merit shop data includes some union distribution contractor workforce and equivalent merit shop pipeline and station supervision and field positions. The workforce is predominately associated with capital work; Workforce largely or exclusively performing maintenance work are not fully included in the workforce size estimate, nor is the full gathering industry workforce incorporated. Gathering line work is nearly 100% merit shop and would boost the workforce size substantially. Source: Propriety Continuum analysis of survey, interview, and industry data to develop and algorithm to estimate pipeline workforce size.
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Construction Unemployment % Union vs Merit Workforce Split &Miles Union Workforce Size Merit Workforce Size Gas T, HL, & Gath. Mileage Construction Unemployment % Combined Union and Merit Workforce Size 40 Interpretive Note: Union and Merit Shop Workforce size lines are stacked. Source: Propriety Continuum analysis of survey, interview, and industry data to develop and algorithm to estimate pipeline workforce size. The total workforce down from 50,000 to 45,000 trades from ‘00 to ‘23 – Peak is 58,000 trades – Average is 47,000. The merit workforce laid early in 2008/2009 financial crisis; Union workforce was retained longer; true of all downturns. Post 2010, the merit workforce has lost less trades, percentage wise, versus the union workforce, in each downturn, and has continued to grow in the face of shrinking pipeline mileage since 2019.
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Combined Union and Merit Trade Workforce Split (1 of 2) Breakdown of both union and merit shop workforce based on trade performed with comparison to annual gas transmission, hazardous liquid, and gathering mileage. 41 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Mileage Trade Workforce Split TU: Supervision TU: Operators TU: Laborers TU: Teamsters or Trucking TU: Welders & Helpers TM: Supervision TM: Operators TM: Laborers TM: Teamsters or Trucking TM: Welders & Helpers Gas T, HL, & Gath. Mileage Interpretive Note: “TU” refers to Trade Union Employee Type; “TM” refers to Trade Union Employee Type Source: Propriety Continuum analysis of survey, interview, and industry data to develop and algorithm to estimate trade mixture as a function of pipeline workforce size.
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Combined Union and Merit Trade Workforce Split (2 of 2) Comparison of start year and final year of era studied include peak and trough as well as average and median over entire era. 42 Source: Propriety Continuum analysis of survey, interview, and industry data to develop and algorithm to estimate trade mixture as a function of pipeline workforce size. Field Position 2000 2023 23 Year Peak / Trough 23 Year Average / Median Supervision 5,933 5,525 7,124 / 3,631 5,728 / 5,933 Operators 13,434 12,509 16,130 / 8,221 12,969 / 13,434 Laborers 15,108 14,068 18,141 / 9,246 14,586 / 15,108 Teamsters or Trucking 1,679 1,563 2,016 / 1,027 1,621 / 1,679 Welders & Helpers 13,174 12,267 15,818 / 8,062 12,719 / 13,174 Total Workforce 49,328 45,933 59,229 / 30,187 47,624 / 49,328
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 - 5,000 10,000 15,000 20,000 25,000 30,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Mileage Union Trade Workforce Split TU: Supervision TU: Operators TU: Laborers TU: Teamsters or Trucking TU: Welders & Helpers Gas T, HL, & Gath. Mileage Union Trade Workforce Split 43 Interpretive Note: “TU” refers to Trade Union Employee Type Source: Propriety Continuum analysis of survey, interview, and industry data to develop and algorithm to estimate trade mixture as a function of pipeline workforce size. Union Field Position 2000 2023 23 Year Peak / Trough 23 Year Average / Median TU: Supervision 559 1,263 3,134 / 528 1,639 / 1,735 TU: Operators 1,265 2,860 7,096 / 1,196 3,710 / 3,928 TU: Laborers 1,423 3,217 7,981 / 1,345 4,173 / 4,417 TU: Teamsters or Trucking 158 357 887 / 149 464 / 491 TU: Welders & Helpers 1,241 2,805 6,959 / 1,173 3,638 / 3,852 Total Union Workforce 4,646 10,502 26,057 / 4,392 13,624 / 14,422
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 10,000 20,000 30,000 40,000 50,000 60,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Mileage Merit Trade Workforce Split TM: Supervision TM: Operators TM: Laborers TM: Teamsters or Trucking TM: Welders & Helpers Gas T, HL, & Gath. Mileage Merit Trade Workforce Split 44 Interpretive Note: “TM” refers to Trade Merit Employee Type Source: Propriety Continuum analysis of survey, interview, and industry data to develop and algorithm to estimate trade mixture as a function of pipeline workforce size. Merit Field Position 2000 2023 23 Year Peak / Trough 23 Year Average / Median TM: Supervision 5,375 4,262 6,175 / 1,837 4,090 / 4,227 TM: Operators 12,168 9,649 13,980 / 4,160 9,259 / 9,570 TM: Laborers 13,685 10,852 15,722 / 4,679 10,414 / 10,763 TM: Teamsters or Trucking 1,521 1,206 1,747 / 520 1,157 / 1,196 TM: Welders & Helpers 11,933 9,462 13,710 / 4,080 9,080 / 9,385 Total Merit Workforce 44,682 35,431 51,333 / 15,276 34,000 / 35,140
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Workforce Size Percent Change from 2000 to 2023 45 Washington Oregon Montana California Arizona Wyoming Nevada Idaho Utah Colorado New Mexico Texas Oklahoma North Dakota South Dakota Nebraska Kansas Louisiana Arkansas Missouri Iowa Minnesota Wisconsin Illinois Indiana Michigan Ohio Kentucky Tennessee Florida Mississippi Alabama Georgia South Carolina North Carolina Virginia West Virginia Pennsylvania Maryland New York Maine Delaware New Jersey Vermont New Hampshire Massachusetts Connecticut Rhode Island State workforce growth, in percentage terms, is concentrated in northern plains, mountain west, Texas, and south where flexible energy policy typically exists. Source: Propriety Continuum analysis of BLS raw data. 20% or more 10% to 19.99% 0% to 9.9% -19.9% to 0% -49.9% to -20% 50% or less
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 2023 Trade Workforce Size by State 46 Washington Oregon Montana California Arizona Wyoming Nevada Idaho Utah Colorado New Mexico Texas Oklahoma North Dakota South Dakota Nebraska Kansas Louisiana Arkansas Missouri Iowa Minnesota Wisconsin Illinois Indiana Michigan Ohio Kentucky Tennessee Florida Mississippi Alabama Georgia South Carolina North Carolina Virginia West Virginia Pennsylvania Maryland New York Maine Delaware New Jersey Vermont New Hampshire Massachusetts Connecticut Rhode Island 1601 or more 1101 to 1600 601 to 1100 101 to 600 100 or less Mileage down to below 3,000. Construction unemployment at historically low 5%. Union workforce of 10,000 – less than half of the 2017 peak. Merit workforce of 35,000 – at or near peaks in ‘22, ’19, ’16, and ’14. Total workforce 45,000, split 23% union and 77% merit shop – size increase in upper Midwest, Texas, and South in comparison to 2015. Source: Propriety Continuum analysis of BLS raw data.
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 2015 Trade Workforce Size by State 47 Washington Oregon Montana California Arizona Wyoming Nevada Idaho Utah Colorado New Mexico Texas Oklahoma North Dakota South Dakota Nebraska Kansas Louisiana Arkansas Missouri Iowa Minnesota Wisconsin Illinois Indiana Michigan Ohio Kentucky Tennessee Florida Mississippi Alabama Georgia South Carolina North Carolina Virginia West Virginia Pennsylvania Maryland New York Maine Delaware New Jersey Vermont New Hampshire Massachusetts Connecticut Rhode Island 1601 or more 1101 to 1600 601 to 1100 101 to 600 100 or less Mileage at 8,000, below peak of ‘14, ‘17, and ‘19. Construction unemployment at 5%, near historic low. Union workforce of 15,000 – between ‘13 and ‘17 peaks of 20,000 and 25,000 respectively. Merit workforce of 20,000 – below peak in ’14 and ‘16. Total workforce 40,000, split 42% union and 58% merit shop – size increase in upper Midwest in comparison to 2010. Source: Propriety Continuum analysis of BLS raw data.
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 2010 Trade Workforce Size by State 48 Washington Oregon Montana California Arizona Wyoming Nevada Idaho Utah Colorado New Mexico Texas Oklahoma North Dakota South Dakota Nebraska Kansas Louisiana Arkansas Missouri Iowa Minnesota Wisconsin Illinois Indiana Michigan Ohio Kentucky Tennessee Florida Mississippi Alabama Georgia South Carolina North Carolina Virginia West Virginia Pennsylvania Maryland New York Maine Delaware New Jersey Vermont New Hampshire Massachusetts Connecticut Rhode Island 1601 or more 1101 to 1600 601 to 1100 101 to 600 100 or less Mileage at 8,000, trending up to ’14 peak. Construction unemployment low at 7%. Union workforce of 15,000 – between ‘08 and ‘13 peaks of 25,000 and 20,000 respectively. Merit workforce of 15,000 – absolute low point – only trending up from this point. Total workforce 30,000, low point in era studied, split 49% union and 51% merit shop – size decrease nationwide associated with ‘08 financial crisis – most reduction in broader Midwest and South in comparison to 2010. Source: Propriety Continuum analysis of BLS raw data.
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 2005 Trade Workforce Size by State 49 Washington Oregon Montana California Arizona Wyoming Nevada Idaho Utah Colorado New Mexico Texas Oklahoma North Dakota South Dakota Nebraska Kansas Louisiana Arkansas Missouri Iowa Minnesota Wisconsin Illinois Indiana Michigan Ohio Kentucky Tennessee Florida Mississippi Alabama Georgia South Carolina North Carolina Virginia West Virginia Pennsylvania Maryland New York Maine Delaware New Jersey Vermont New Hampshire Massachusetts Connecticut Rhode Island 1601 or more 1101 to 1600 601 to 1100 101 to 600 100 or less Mileage at 4,000, distribution dominated. Construction unemployment near 5%. Union workforce of 5,000 – near absolute low point. Merit workforce of 50,000 – before 2008 collapse – distribution dominated. Total workforce 54,000, split 9% union and 91% merit shop – size mixture, and geographic dispersion consistent with 2000. Source: Propriety Continuum analysis of BLS raw data.
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net 2000 Trade Workforce Size by State 50 Washington Oregon Montana California Arizona Wyoming Nevada Idaho Utah Colorado New Mexico Texas Oklahoma North Dakota South Dakota Nebraska Kansas Louisiana Arkansas Missouri Iowa Minnesota Wisconsin Illinois Indiana Michigan Ohio Kentucky Tennessee Florida Mississippi Alabama Georgia South Carolina North Carolina Virginia West Virginia Pennsylvania Maryland New York Maine Delaware New Jersey Vermont New Hampshire Massachusetts Connecticut Rhode Island 1601 or more 1101 to 1600 601 to 1100 101 to 600 100 or less Mileage at 4,000, distribution dominated. Construction unemployment near 5%. Union workforce of 5,000 – at absolute low point. Merit workforce of 45,000 – before 2008 collapse – distribution dominated. Total workforce 50,000, split 9% union and 91% merit shop – size mixture, and geographic dispersion consistent with 2005. Source: Propriety Continuum analysis of BLS raw data.
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Agenda Engagement Objective, Hypothesis, & Deliverables Executive Summary Conclusions, Findings, & Observations – Market Size by Workforce – Market Size Drivers – Market Size by Mileage – Market Size by Spending – Alternative Sources of Workforce Size & Dynamics – Unionization Dynamics Appendices 51
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Market Size Driver Conclusions (1 of 4) FERC approvals and commodity prices are the primary drivers of transmission and hazardous liquid construction activity. Commodity prices and basin product takeout capacity are the primary drivers of gathering line construction activity. Regulation and housing starts are the primary drivers of distribution construction activity. Pipeline capacity continued to accelerate during the Obama administration when curtailing efforts remained largely focused at the National level and proved ineffective at stopping highly powerful market forces. The Biden administration was much more effective at curtailing efforts and environmental forces have moved to a more local blocking actions that have proved much more effective. 52
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Market Size Driver Conclusions (2 of 4) Market Size Driver: Policy – FERC approval for interstate pipeline activity is critical to future construction activity 1-3 years post approval. 53 Source: Propriety Continuum analysis of PHMSA raw data, FERC raw data on pipeline approvals. 0 500 1,000 1,500 2,000 2,500 3,000 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 FERC Miles Approved New Transmission Mileage Gas Transmission Miles Approved
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Market Size Driver Conclusions (3 of 4) Market Size Driver: Commodity Price – Peaks in commodity prices result in expansion of transmission, hazardous liquid, and gathering infrastructure. 54 Interpretive Note: Natural Gas unit cost increased by 10x for easier comparison of volatility relationship to accelerating and decelerating new construction activity. Source: Propriety Continuum analysis of PHMSA raw data, US Energy Information Administration. $0 $20 $40 $60 $80 $100 $120 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Unit Cost Barrels & Million Btus ($) New Trans., HL, Gathering Mileage Gas Transmission Hazardous Liquid Gathering Crude Oil Natural Gas (10x)
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Market Size Driver Conclusions (4 of 4) Market Size Driver: Political Leadership – Political leadership yields a mixed effect on transmission, hazardous liquid (HL), and gathering construction activity. The Biden administration has been very effective at curtailing activity in this market sector. 55 Interpretive Note: Natural Gas unit cost increased by 10x for easier comparison of volatility relationship to accelerating and decelerating new construction activity. Source: Propriety Continuum analysis of PHMSA raw data, US Energy Information Administration. $0 $20 $40 $60 $80 $100 $120 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Unit Cost Barrels & Million Btus ($) New Trans., HL, Gathering Mileage Gas Transmission Hazardous Liquid Gathering Crude Oil Natural Gas (10x)
October 2025 APCA MARKET PENETRATION RESEARCH www.ContinuumCapital.net Market Size Driver Summary Findings & Observations Political leadership yields a mixed effect on transmission, hazardous liquid, and gathering construction activity. FERC approval for interstate pipeline activity is critical to future construction activity 1-3 years post approval. 21 states have passed legislation enforcing energy choice – 30% of US annual consumption. Peaks in commodity prices result in the expansion of transmission, hazardous liquid, and gathering infrastructure. Gathering line construction occurs 1-2 years before basin production peaks – followed by transmission and hazardous liquid construction 1-3 years after basin production peaks. 2002 and 2018 transmission expansion cycles are closely related to housing starts. Regulation and, more specifically, accelerated replacement programs, are the primary driver of gas distribution spending and mileage installed. 56
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