United States Oil & Gas Midstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United States Oil & Gas Midstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Crude oil and natural gas production in the United States have grown at a CAGR of more than 5% and 3.5% respectively during 2006-2018. This has led to significant investment in the midstream sector to transport, especially for gas and process the additional production. Major factors driving the market include an extensive drilling program in the shale reserve and low breakeven prices. However, the market is experiencing hindrance, due to the delay witnessed by the oil and gas pipeline projects.

Key Highlights

• The shale revolution in the United States and recovery in international crude oil prices over the past few years led to an increase in the oil and gas production. Hence, there is an increasing need to expand the existing pipeline network in the country.
• In the United States, the majority of the pipeline, which is planned for 2019 and 2020, will connect the Permian Basin with the Gulf of Mexico.
• Shale revolution in the United States and recovery in international crude oil prices over the past few years led to an increase in the oil and gas production. Hence, there is an increasing need to expand the existing pipeline network in the country.

Key Market TrendsIncreasing Investment in Gas Infrastructure

• In the US coal-based power plants are being replaced by natural gas-fired power plants, resulting in an increasing demand for natural gas and related infrastructure.
• In 2017, the United States exported 700 billion cubic feet of natural gas, in the form of LNG, in large LNG tanker ships, along with a small quantity shipped by trucks or container. In total, as of March 2018, US LNG was been delivered to 27 countries, in five continents, and the list of destinations continues to grow.
• LNG export from the United States increased to over 12 billion cubic feet per day, as of July 2018, representing one of the largest growth markets. It is supported by 15 to 30 trains of liquefaction capacity, almost entirely located along the US Gulf Coast.
• Further, the US Department of Energy (DOE) issued a final rule to accelerate the approval process of small-scale export of natural gas, including LNG. The initiative aims to accelerate the DOE’s processing of small-scale export applications and reduce administrative burdens for the small-scale natural gas export market. The rule will enable LNG projects with an estimated export capacity of one metric ton per annum or under, to avoid the current extensive permitting procedure.
• As a result, increasing investment in natural gas infrastructure including pipelines and LNG facilities to meet the growing demand for the same is expected to translate into huge investment in the coming years.

Competitive Landscape

The US oil & gas midstream market remains fragmented with key players such as American Midstream Partners LP, Chevron Inc., BP plc, Phillips 66 Company, and Shell Midstream Partners LP.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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