Midstream Capacity Key to Surging Shale Production

Water in and out as well as hydrocarbon transport sustain new completion techniques for U.S. shale producers.

Crestwood’s Jackalope gathering system is located in Douglas, Wyo., in the Powder River Basin. (Source: Crestwood Equity Partners)

Midstream capacity is widely seen as an important enabling factor in expanding U.S. hydrocarbon production, especially in unconventional plays.

“What we see from the drillers and the pressure pumpers is that the activity is focused in the major basins,” said Jonathan Godwin, senior associate at Enverus. “The Permian alone accounts for 60% to 70% of all the new production we are seeing this year and next.”

For example, optimizing existing assets was a major reason why Crestwood Equity Partners acquired Sendero Midstream Partners. Crestwood owns and operates gathering and processing midstream assets as well as storage and logistics primarily in the Williston Basin, Delaware Basin, Powder River Basin and Marcellus Shale.

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Gregory Morris

Gregory DL Morris has covered conventional energy from exploration and production to refining and petrochemicals. He regularly contributes to Oil and Gas Investor and Midstream Business.