NAICS 237120 Quarterly Industry Report
Oil and Gas Pipeline and Related Structures Construction
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 237120Sector: Construction (23)Updated: Q1 2026
About This Report
This industry profile for Oil and Gas Pipeline Construction (NAICS 237120) draws on data from the U.S. Census Bureau[6], PHMSA[8], Bureau of Labor Statistics[10], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, pipeline construction analysts, and energy infrastructure investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the oil and gas pipeline and related structures construction industry.
Industry Definition & Overview
Oil and Gas Pipeline and Related Structures Construction (NAICS 237120) encompasses establishments primarily engaged in the construction of oil and gas lines, mains, refineries, and storage tanks per the U.S. Census Bureau[5]. Work performed includes new construction, reconstruction, rehabilitation, and repairs of oil and gas pipelines plus all structures integral to these networks including compressor stations, pumping stations, metering facilities, and tank farms. Refinery and petrochemical plant construction is also included as related structures activity.
Roughly 992 firms employ 200,209 workers generating $48.9 billion in revenue with $14.1 billion in annual payroll per Census Bureau[6] economic survey data. Bechtel Corporation, the largest privately held construction firm globally, maintains extensive pipeline and petrochemical construction capabilities. Kinder Morgan operates as one of North America's largest pipeline operators while commissioning construction through third-party contractors. Fluor Corporation, Quanta Services, and regional pipeline contractors perform the field construction work. Industry volume tracks oil and gas production investment, with natural gas infrastructure, LNG terminal construction, and carbon capture pipeline projects representing current growth areas.
Per the SBA Table of Size Standards[7], the size standard is $45 million in average annual receipts. Pipeline and Hazardous Materials Safety Administration (PHMSA) within the Department of Transportation[8] regulates pipeline construction and operation under 49 CFR Parts 192 (gas) and 195 (hazardous liquids). OSHA[9] construction safety standards apply to all pipeline job sites. Federal Energy Regulatory Commission (FERC) reviews interstate natural gas pipeline routing and environmental impacts under the Natural Gas Act. Environmental impact statements under the National Environmental Policy Act (NEPA) are required for major pipeline projects crossing federal lands. State pipeline safety programs administer intrastate pipeline regulations, with most states adopting PHMSA minimum safety standards. Welding qualification under API 1104 and pipeline integrity management programs represent industry-specific technical requirements.
What's Included in This Industry
- Oil transmission and gathering pipeline construction
- Natural gas transmission and distribution pipeline construction
- Compressor station and pumping station construction
- Pipeline metering and regulation station construction
- Tank farm and petroleum storage facility construction
- Refinery and petrochemical plant construction
- LNG terminal and processing facility construction
- Pipeline horizontal directional drilling and boring
- Pipeline integrity testing and rehabilitation
- Carbon capture and CO2 pipeline construction
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Construction | 23 |
| Subsector | Heavy and Civil Engineering Construction | 237 |
| Industry Group | Utility System Construction | 2371 |
| NAICS Industry | Oil and Gas Pipeline and Related Structures Construction | 23712 |
| National Industry | Oil and Gas Pipeline and Related Structures Construction | 237120 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 237110 | Water and Sewer Line and Related Structures Construction | Water and Sewer Line Construction shares trenching, excavation, and pipe installation techniques with pipeline contractors, with many firms performing both water utility and oil/gas pipeline work using similar heavy equipment and field crew capabilities |
| 237130 | Power and Communication Line and Related Structures Construction | Power and Communication Line Construction installs electric power and fiber optic infrastructure that pipeline compressor stations and SCADA systems require, with power line construction often coordinated alongside pipeline projects to supply the electrical service needed for pipeline operating equipment |
| 211130 | Natural Gas Extraction | Natural Gas Extraction produces the commodity that pipeline construction enables to reach markets, with production drilling activity directly driving demand for gathering line, processing facility, and transmission pipeline construction connecting wellheads to gas processing and distribution infrastructure |
| 486110 | Pipeline Transportation of Crude Oil | Pipeline Transportation of Crude Oil operates the transmission systems that pipeline contractors build and maintain, with pipeline operators commissioning new construction, expansion, and integrity rehabilitation projects to transport growing crude oil and refined product volumes across the pipeline network |
| 332410 | Power Boiler and Heat Exchanger Manufacturing | Power Boiler and Heat Exchanger Manufacturing produces the pressure vessels, heat exchangers, and process equipment that pipeline contractors install during refinery and petrochemical plant construction, with heavy industrial equipment setting representing a specialized construction activity within this classification |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 27.2% | 588 |
| 2 | Louisiana | 6.7% | 144 |
| 3 | Oklahoma | 5.6% | 122 |
| 4 | California | 4.8% | 104 |
| 5 | Pennsylvania | 4.2% | 90 |
| 6 | Ohio | 3.4% | 74 |
| 7 | Florida | 3.2% | 69 |
| 8 | Colorado | 3.1% | 68 |
| 9 | Wyoming | 2.5% | 53 |
| 10 | New Mexico | 2.2% | 47 |
% Of Establishments
0%
27%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
64
Total SBA Loans
$77.0M
Total Loan Volume
$1.2M
Average Loan Size
11 yrs
Average Loan Term
8.90%
Average Interest Rate
1,544
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Oil and Gas Pipeline Construction (NAICS 237120) has a size standard of $45 million in average annual receipts for federal contracting purposes. SBA lending programs[11] support equipment acquisition, bonding capacity, and business expansion for qualifying pipeline construction firms. Eligible businesses can access SBA 7(a) loans[12] for working capital, equipment, and acquisition financing, while 504 loans[13] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Live Oak Banking Company | 16 | $38.6M | $2.4M |
| 2 | The First Security Bank | 8 | $21.4M | $2.7M |
| 3 | Community Trust Bank, Inc. | 16 | $9.6M | $600K |
| 4 | MidWestOne Bank | 8 | $3.2M | $400K |
| 4 | Bank of America, National Association | 8 | $3.2M | $400K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for pipeline construction?
NAICS 237120 covers oil and gas pipeline and related structures construction including transmission lines, gathering systems, compressor stations, and refinery construction per the U.S. Census Bureau[5].
What is the SBA size standard for pipeline construction?
The SBA size standard[7] is $45 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
How large is the pipeline construction industry?
Roughly 992 firms employ 200,209 workers generating $48.9 billion in revenue per Census Bureau[6] economic survey data, with industry volume tracking oil and gas production investment and energy infrastructure development.
What federal agency regulates pipeline construction?
PHMSA[8] within the Department of Transportation regulates pipeline construction and operation under 49 CFR Parts 192 (gas) and 195 (hazardous liquids), setting minimum safety standards for materials, welding, testing, and construction procedures.
What role does FERC play in pipeline construction?
Federal Energy Regulatory Commission reviews interstate natural gas pipeline routing and environmental impacts under the Natural Gas Act per FERC[14] regulatory authority, with certificate of public convenience and necessity required before new interstate gas pipelines can be constructed.
What welding standards apply to pipelines?
API 1104 (Welding of Pipelines and Related Facilities) governs pipeline welding qualification and procedures per American Petroleum Institute standards, with each welder required to pass qualification tests for the specific pipe diameter, wall thickness, and welding process used on each project.
What environmental permits do pipeline projects need?
Major pipeline projects require environmental impact statements under NEPA per federal law, with additional permits including Clean Water Act Section 404 wetland permits, Endangered Species Act consultations, and state-level environmental review for pipeline routing across sensitive areas.
What is driving pipeline construction demand?
Natural gas infrastructure expansion, LNG terminal construction, and carbon capture pipeline projects represent current growth areas per Census Bureau[6] construction spending data, with federal incentives under the Inflation Reduction Act supporting CO2 pipeline development for carbon capture and storage applications.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]SBA Table of Size Standards sba.gov
- [8]Department of Transportation phmsa.dot.gov
- [9]OSHA osha.gov
- [10]Bureau of Labor Statistics bls.gov
- [11]SBA lending programs sba.gov
- [12]SBA 7(a) loans sba.gov
- [13]504 loans sba.gov
- [14]FERC ferc.gov
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