Midstream's Changing Footprint

Larger players are taking up more of the midstream market share as infrastructure project costs are soar with prices staying flat, according to EnVantage’s Peter Fasullo.

footprint

(Source: HartEnergy.com, Shutterstock)

Since production has been able to get so far ahead of the midstream and the downstream, it has created a low-price environment for NGL. NGL storage inventories are high, causing record low valuations for NGL vs. crude oil.

While  midstream infrastructure is finally  catching up with shale production, the downstream components remain a few years out from providing a lifeline for the gas and liquid markets. “Producers and midstream players can recover, transport and fractionate the NGLs, but those individual products either have to be absorbed by domestic NGL markets or they have to be exported,” said Peter Fasullo of EnVantage.

Already have an account? Log In

Subscribe now to get unmatched and complete coverage of the Energy industry’s entire landscape!

View our subscription options
  • Access to site wide content
  • Access to our proprietary databases
  • Watch exclusive videos with energy executives
  • Unlimited access to an extensive library of Playbooks, Techbooks, Yearbooks, supplements, and special reports
  • Newly Added! Access to Rextag's Energy Datalink, containing extensive GIS databases of energy assets, production records, processing capacities, physical locations, planned projects, acquisition records, and much more.

Frank Nieto

Frank Nieto has covered the energy industry for more than a decade. He previously served as senior editor for Hart Energy's Midstream Business.