This is quite frustrating. Trying to make workspace polygons around an oil pipeline, one of which has a varying offset, so it helps to have the option to change on the fly with the trace offset feature. This only works with planar distances.
I've played around in the environments, but neither the current map nor layer projection changes the distance to geodesic. The only way I've been able to draw this polygon with a geodesic measured buffer is to use the buffer tool to make both geodesic offsets, and then splitting away the parts I don't need.