Analysis
NAICS 237120 is the 2022 national industry for oil and gas pipeline and related structures construction, part of 23712 (Oil and Gas Pipeline and Related Structures Construction). Census lists 24 example activities under it in the official index.
County Business Patterns counts 2,156 US establishments in this code in 2023, employing 167,820 people at an average annual payroll of $88,525 per employee (76th percentile of national industries). 29% of the establishments have fewer than five employees, which is close to the national mix.
Census lists 6 related activities that belong elsewhere, most often in 236210, 213112, 541990 and 221. Businesses that do several things are classified by their primary activity, the one that generates the most value, so check those boundaries before settling on this code.
Its index entries, the activities Census uses to assign businesses to this code, include compressor, metering and pumping station, gas and oil…, construction management, oil and gas pipeline, construction management, oil refinery and petrochemical… and corrosion protection, underground pipeline and oil storage…, among 24 in all.
For example, building chemical plants (except petrochemical) and similar process or batch facilities are classified in 236210 (Industrial Building Construction) instead.
Between 2018 and 2023 the number of establishments fell 3% and employment fell 26%. The 2018 count used NAICS 2017, so part of a large move can come from codes being redefined rather than from businesses opening or closing.
Official definition
This industry comprises establishments primarily engaged in the construction of oil and gas lines, mains, refineries, and storage tanks. The work performed may include new work, reconstruction, rehabilitation, and repairs. Specialty trade contractors are included in this industry if they are engaged in activities primarily related to oil and gas pipeline and related structures construction. All structures (including buildings) that are integral parts of oil and gas networks (e.g., storage tanks, pumping stations, and refineries) are included in this industry.
Illustrative Examples:
Distribution line, gas and oil, construction Oil refinery construction Gas main construction Petrochemical plant construction Gathering line, gas and oil field, construction Natural gas pipeline construction Pumping station, gas and oil transmission, construction Storage tank, natural gas or oil, tank farm or field, construction Natural gas processing plant construction
Source: US Census Bureau, NAICS 2022 Manual.
Not this code if…
| The business mainly does | Use instead |
|---|---|
| Building chemical plants (except petrochemical) and similar process or batch facilities | 236210 Industrial Building Construction |
| Oil well rig building, repairing, and dismantling, on a contract basis | 213112 Support Activities for Oil and Gas Operations |
| Inspecting pipelines (i.e., visual) | 541990 All Other Professional, Scientific, and Technical Services |
| Installing and maintaining natural gas distribution lines performed by natural gas utility companies | 221 Utilities |
| Mining machinery and equipment repair and maintenance | 811310 Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance |
| Manufacturing floating oil and gas drilling and production platforms | 336611 Ship Building and Repairing |
Index entries (24)
- Compressor, metering and pumping station, gas and oil pipeline, construction
- Construction management, oil and gas pipeline
- Construction management, oil refinery and petrochemical complex
- Corrosion protection, underground pipeline and oil storage tank
- Distribution line, gas and oil, construction
- Gas main construction
- Gathering line, gas and oil field, construction
- Manhole, oil and gas, construction
- Natural gas pipeline construction
- Natural gas processing plant construction
- Oil and gas field distribution line construction
- Oil pipeline construction
- Oil refinery construction
- Petrochemical plant construction
- Petroleum refinery construction
- Pipe lining (except thermal insulating) contractors
- Pipeline construction on oil and gas field gathering lines to point of distribution on a contract basis
- Pipeline rehabilitation contractors
- Pipeline wrapping contractors
- Pipeline, gas and oil, construction
- Pumping station, gas and oil transmission, construction
- Refinery, petroleum, construction
- Service line, gas and oil, construction
- Storage tank, natural gas or oil, tank farm or field, construction