To quantify addressable opportunities for midstream services, ADI modeled capital and operational expenditures across North American gathering, transportation, distribution and storage assets. The study evaluated infrastructure constraints in the Permian and Appalachian basins, specifically addressing how rising maintenance needs on aging infrastructure offset cyclical volatility in new project FIDs. Proprietary spend curves were applied to nameplate capacities to establish defensible segment forecasts through 2026.
The client
Private equity and industrial services firms
The situation
Significant uncertainty regarding the timing and scale of midstream service demand following pandemic-related volatility.
ADI’s contributions
Proprietary spend modeling
ADI applied cost-per-mile and cost-per-unit metrics to an asset database to estimate granular market sizes.
Asset-level segmentation
Analysis of oil and gas pipelines in North America and identified high-density maintenance pockets by region.
Basin-specific growth drivers
Evaluation of Permian production forecasts determined the necessary expansion of gas processing and NGL fractionation.
Operational trade-off analysis
Assessment of regulatory and aging asset trends quantified the shift from greenfield build to brownfield integrity spend.
Key outcomes
- Refinement of service acquisition strategies and prioritization of operational maintenance markets over new construction.
More insights
2026 June SAF Tracker highlights – #88
Here are the latest highlights from ADI’s SAF Tracker: The full newsletter along with archives and databases are available to SAF Tracker subscribers.
Utility capital projects & 2026 energy trends
Utility capital projects are facing mounting delays and cost pressures in 2026, even as AI-driven demand fuels record capex. Meanwhile, the upstream oil and gas market is stabilizing around a normalizing shale cost curve, bulk liquid storage operators are shifting toward capability-driven growth, and the energy transition is exposing critical minerals bottlenecks that are pushing […]
U.S. refining capacity is gradually consolidating into larger, more complex facilities
U.S. refining capacity shows limited overall growth, but the structure of the system is shifting. Expansions at large, complex refineries are driving changes on the supply side, while smaller plants face cost and operational constraints that are forcing exits. This is steadily concentrating capacity in fewer, more sophisticated facilities. Key drivers capacity consolidation: Geographic concentration […]