The oil & gas midstream industry faced multiple challenges in 2022: an increase in demand for American LNG from Europe, growing emissions and ESG pressures, volatile margins and markets, and rising gas and oil production. In 2023, we expect similar challenges and dynamics that will test midstream markets again. Some of these challenges and dynamics […]
Strength in numbers: Increasing the Permian’s gas takeaway capacity
The Permian Basin is set to see five new pipeline projects in the coming next year. Three projects will expand existing pipelines’ capacity, while the other two involve the construction of new pipelines. If everything goes according to plan, these five new pipelines will collectively add 4.18 billion cubic feet per day (Bcf/d) to the […]
A cleaner natural gas value chain: IRA’s Methane Emissions Reduction Program
The Inflation Reduction Act (IRA) offers tax credits to advance clean-energy initiatives and reduce greenhouse gas (GHG) emissions. While there are incentives for everything from carbon capture through electric vehicles to renewable energy and hydrogen production, there are some penalties. The federal government’s first-ever greenhouse gas (GHG) emission fee is part of the new law’s […]
Why midstream CAPEX is falling?
Since 2019, midstream companies have been lowering their capital spending annually. For example, Kinder Morgan expects to spend roughly $390 million less in capex in 2022 than they did in 2019, as seen in Exhibit 1. This trend for companies in the industry is due to a multitude of factors which were covered in depth […]
2022 Midstream Outlook: Challenging times ahead
Midstream companies will cut back on capital spending in 2022 significantly by over 50% from 2021 The projections for capital spending in 2022 by large midstream players show a consistent trend of cutting back from 2021 spending. For example, Kinder Morgan expects to cut $1 billion in capital spending while Enbridge has announced a capex […]
