RMR features the latest high-point news to keep you to up to date with midstream activities happening in the basins and shale plays that matter to you most.
Midstream Infrastructure Predicted to Grow to $3.2 Trillion by 2027
Fracking shale rock has undoubtedly created new demand for midstream infrastructure—not solely in the U.S., but around the world, where aging systems—or the lack there of—have driven a sweet shot in the arm to midstreamers looking to build, replace and expand. RMR today is following the latest analysis from global researchers Alerian and Kallanish Energy, which predict midstream operators, even in light of production curtailments and well shut-ins, might not experience any significant negative impact on their businesses.
According to both research sites, current production curtailments are predicted to be temporary worldwide. U.S. producers like Austin-based Parsley Energy, which shut in 5,000-7,000 BPD of supplies in March and April—and looks to curb another 23,000 BPD in May—still expects to meet its midstream commitments. In addition, gathering pipelines here and abroad now have become the fastest-growing segment of the midstream sector as more oil and gas discoveries are made on- and offshore. Kallanish reports that global gas infrastructure will grow to $3.2 trillion by 2027 to include more gathering, distribution, and transmission pipes to keep pace with natural gas consumption, exports, and imports.
Oryx Midstream Looks to Expand ODOT System
Midland-based Oryx Midstream has announced a binding open season for shipper volume commitments to support a proposed expansion of the company’s 1,550-mile Oryx Delaware Oil Transport (ODOT) pipeline that extends from Crane, Texas, in the Delaware sub-basin of the Permian to an interconnect with the Phillips 66, 850-mile Gray Oak Pipeline. The Gray Oak line stretches from the Permian to the Eagle Ford and on to the Gulf Coast, and has just announced raising rates on its 900,000 BPD line by 2% a year. The Oryx open season begins May 18 and concludes on June 17.
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