“We hear a lot from customers that are really looking for help,” said Louis Krannich, CEO of Remote Operations Center (ROC). His clients seek solutions for compliance with a host of federal and state pipeline safety regulations.
How can a midstream company afford to protect both its assets and its profit margins? That’s the question that Midstream Connect explores in this month’s segment.
We visited ROC’s state-of-the-art control room in its Katy, Texas, headquarters. From there, the company monitors 15 pipeline systems in multiple basins across the country. It aims its services at small and medium-sized companies that may be financially hard-pressed to maintain the technology and training necessary to keep up with fast-changing regulations and could use a third-party option.
How will the regulatory environment change in the next six months to a year?
“I don’t think anybody really knows,” Krannich said. “I cannot really imagine a scenario where, over time, the industry doesn’t continually try to raise the bar when it comes to safety.”
Midstream companies are working furiously to relieve takeaway and export constraints, but in the meantime, producers will feel the pain.
Expect plenty of capital, plenty of volatility, plenty of shifts in investor strategies—and plenty of unfolding stories to track as the new year progresses.
Demand from IMO 2020, a crazy-productive Permian and a midstream sector scampering to keep up will combine to fuel a red-hot industry in 2019.