Energy Prices Pushes Demand for Pipeline AppraisalsHOUSTON - Pipeline Equities said today that high oil and gas prices generated new demands on its exclusive appraisal services required by owners, operators and buyers of pipelines as the trend to mergers and acquisitions steadily increases.
The company's latest pipeline appraisals for clients illustrate a new trend in valuations of properties that now change hands at record speeds for private and public operators, it said.
David Howell, Managing Partner of the Houston-based firm, said government projects have increased substantially as authorities struggle to find qualified personnel to appraise properties for taxation purposes. "Inquiries to Pipeline Equities has risen sharply over the past few months and are expected to continue at a high rate as prices remain strong and more companies enter the business," he said.
"Appraisals for estate disposition, tax disputes, mergers and acquisitions are a new growth market that places strong demands on the few companies in this business, "Howell said. Most pipeline appraisals were done by accounting or engineering firms who are limited in experience and information, he said. "This has changed due to technology and time requirements," he said.
Pipeline Equities was formed in the 1980s to perform salvage and environmental remediation projects that have increased with rising prices.
"Evaluating a pipeline system often requires study of right-of-way, salvage, replacement, throughput, drilling potential and the economic outlook for energy", Howell said.