Gulf of Mexico Oil and Gas Mid-Stream Market - 2022-2029

Gulf of Mexico Oil and Gas Mid-Stream Market - 2022-2029

Market Overview

The mid-stream industry covers transportation, warehousing and trading of crude oil, natural gas and refined goods. Unrefined crude oil is transferred using two major modes: pipelines, which move most of the oil for at least part of the route and tankers, which travel interregional waterways. Pipelines move the goods to another carrier or a refinery after the oil has been extracted and separated from the gas. Then, petroleum products are transported by tanker, truck, railroad car or additional pipelines from the refinery to the market. Tankers transport oil and refined goods from other nations to U.S. to fill the gap between domestic production and demand. Oil is also transported along the Gulf coast by tankers.

Market Dynamics

During the forecast period, factors like rising sector investment and oil production are anticipated to increase demand for the oil and gas mid-stream market. Since more pipeline and storage infrastructure may be needed shortly, the exploration and production of oil and gas fields in the area are anticipated to present an opportunity for oil and gas mid-stream companies. The region's entire oil and gas sector is anticipated to grow faster due to increased investment.

Additionally, the mid-stream market for oil and gas in the Gulf of Mexico is driven by an Upsurge in downstream demand for petroleum products.

The growth in the pipeline sector drives the oil and gas mid-stream market

The mid-stream sector of the oil and gas industry is heavily dependent on pipelines. From upstream well facilities to the proximity or most cost-effective mid-stream processing facility, they transport crude oil and natural gas. The pipeline and gathering or transmission facilities used to transport gas from the well (upstream) to residences and places of business are managed by mid-stream companies (downstream).

Additionally, mid-stream operations treat the product, remove waste materials or water, compress it and prepare it for various downstream markets.

The development of refined product pipeline networks bolsters market expansion

Several manufacturers are focusing on expanding their pipeline systems for the transportation of oils and other petroleum products. For instance, Southwestern Energy, a US natural gas producer, signed two agreements for additional pipeline capacity in the Haynesville shale, enabling it to access upscale markets along US Gulf coast in 2024. Through those agreements, Southwestern will access 500 million cubic feet per day (14 million cubic meters per day) of the Haynesville field, a productive gas field in east Texas and northern Louisiana. Due to its proximity to industrial users and LNG export terminals on US Gulf coast, producers are striving for positions in Haynesville. Some major producers are expanding in the field because it has become difficult to construct the necessary infrastructure to transport gas to markets in the northeastern U.S., where they have sought to increase production.

In August 2022, the Tulsa-based Magellan Midstream Partners LP intended to increase the pipeline system for refined petroleum products from the Houston region to El Paso, Texas, to a new capacity of about 100,000 b/d. The expansion will include building a new 16-inch, 30-mile pipeline along its current route between Odessa and Crane, Texas, as well as more operational storage to support additional shipments. The company can currently transport about 70,000 b/d of refined petroleum products (gasoline and diesel fuel) to El Paso from refineries on the Gulf Coast and the mid-continent and shippers have the option of using its pipeline system to access markets in New Mexico, Arizona and Mexico via connections to other pipelines. Furthermore, the developments mentioned above drive the growth of the market.

However, one of the main issues for the mid-stream infrastructure in the region is the cyclone threat, which is likely to cause delays for the projects in the years ahead.

COVID-19 Impact Analysis

Oil and gas prices fell to extremely low levels due to Unexpected and significant decreases in oil and gas consumption brought on by COVID-19. Investment in the oil and gas industry was hampered by lower prices and a lack of certainty pertaining to when demand would return. Due to these factors, the oil and gas industries could not adequately meet the resurgence of oil and gas demand. Oil and gas prices have become more volatile and supply disruptions are more likely due to the temporary imbalance between demand and supply. Uncertainty about future oil and gas demand brought on by the pandemic has been one of the causal factors, even though the price volatility and relatively short disruptions were not entirely due to the pandemic. Furthermore, COVID-19 has severely impacted the Gulf of Mexico's oil and gas mid-stream market.

Segment Analysis

The Gulf of Mexico oil and gas mid-stream market is segmented based on type.

The various modes of transportation of oil and gas boost the Gulf of Mexico oil and gas mid-stream market

Infrastructure for transportation, transmission and distribution delivers the oil and gas. Larger volumes are moved along the coast or through rivers in smaller barges, while larger volumes are transported internationally in tankers or other vessels. Methods of land transportation include trucking, rail and pipelines. Transmission lines are large-diameter, high-pressure-handling pipelines used to transport natural gas. Furthermore, the transportation type segment dominates the Gulf of Mexico oil and gas mid-stream market.

Competitive Landscape

Oil producers are making several strategic decisions in the Gulf of Mexico oil and gas mid-stream market to invent effective technologies and increase production rates to meet market demand. The primary focus areas include product launches, partnerships, strategic mergers and acquisitions. The key players in the market are Chevron Corporation, DCP Midstream, LLC, PSI Midstream Partners, LP, Enagas SA, Crimson Midstream, LLC, Energy Midstream Companies Inc., Riverstone Holdings LLC, RBN Energy, LLC, Williams Companies Inc. and Royal Vopak NV.

Chevron Corporation

Overview: Chevron Corporation is an international energy company based in the U.S. Its headquarters are in San Ramon, California and it operates in over 180 countries. It is the second-largest direct descendant of Standard Oil and was formerly known as the Standard Oil Company of California. The company’s operation includes exploration & production, refining, transportation, supply & trading, lubricants, new energies, products & services and chemicals & additives. The company has a geographical presence across North America, South America, Europe, Asia-Pacific, the Middle East, Africa and Eurasia.

Product Portfolio

Pipelines: Operations cannot be carried out without transportation. Chevron Pipe Line Company provides facilities and pipelines that transport crude oil, natural gas, refined petroleum products, liquefied petroleum gas, natural gas and chemicals in North America.

Key Development In August 2022, After a small leak stopped pipelines, Shell and Chevron shut down their oil platforms in the Gulf of Mexico. A small leak that shut down two pipelines led Shell and Chevron to stop oil production in several places in Mexico's Gulf. According to Shell, those three platforms generated an average of 202k barrels per day in 2021. Every day, US produces close to 12 million barrels of oil.

Why Purchase the Report?
• To visualize the Gulf of Mexico oil and gas mid-stream market segmentation based on type, as well as understand key commercial assets and players.
• Identify commercial opportunities in the Gulf of Mexico oil and gas mid-stream market by analyzing trends and co-development.
• Excel data sheet with numerous data points of Gulf of Mexico oil and gas mid-stream market-level with type segment.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players.

The Gulf of Mexico oil and gas mid-stream market report would provide approximately 31 tables, 15 figures and 118 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies