No one was prepared for a global pandemic, especially one that placed a vise grip on the world economy with lockdowns enforced in just about every country. Demand for various commodities suffered even as production fell in 2020. The oil and gas industry was hit especially hard as people stopped driving much on a daily basis. When WTI hit -$36/bbl in April 2020, it seemed as though it would be a long slog to recovery. Yet 18-plus months on, the industry—including the midstream sector—is performing at levels not seen in years, even as remote work has become the norm for many.
Part of this quick recovery can be attributed to the cyclical nature of the industry. Consistent volatility caused midstream operators to look at changes to steady the ship. One of the most prominent of these companies was DCP Midstream, which instituted a new strategy in 2016 called DCP 2020.
However, if there is one consistent theme among midstream players in 2021, it has been sticking with a strategy and relying on market fundamentals. Similar to DCP Midstream, EnLink and Enterprise Product Partners, The Williams Companies remained focused on its long-term goal while managing its way through the pandemic-driven downturn.