Tag Archives: pipelines

Beyond commodity prices –the story on midstream oil & gas opportunities in 2015

26 Jan

The January 22, 2015 edition of “Oil & Gas Monitor” contains the full version of this post. I urge you to view it at: http://www.oilgasmonitor.com/beyond-commodity-prices-the-story-on-midstream-oil-gas-opportunities-in-2015/8483/

The latest news covering the oil and gas market for 2015 focuses almost entirely on the detrimental effects of low prices on exploration and production, making it easy to miss the bigger picture. Just as the fluctuations of the stock market do not reflect the entire state of the US economy, commodity oil and natural gas prices do not tell the whole story of our industry. Even in the face of a 50% drop in the price of a barrel of oil, and a reduction in natural gas prices, opportunities still abound for investment, especially in the midstream segment.

Even in light of the plunge in oil prices and cuts in upstream investments, the U.S. Energy Information Agency expects oil and gas production to continue to hold steady and may even potentially rise in 2015.

In order for the producers to monetize their reserves, the production must be moved to market. Designing, permitting, and constructing these facilities is challenging and the ability to deliver the planned projects safely, on time, and on budget, is a key requirement. Speed to market for these gathering, processing, and pipeline companies is essential.

Companies with the experience and know how to develop and implement strategies for delivering these projects, from inception, permitting, and construction, will be in demand. Whether it’s knowing how to traverse a wetland, culturally significant geography, remediating existing brownfields, or employing the best sustainable development practices for the project, employing firms with the proper knowledge and technical capabilities needed to deliver under difficult conditions is essential.

We don’t lack for oil and gas sector investment opportunities, and success will follow those companies who can muster the understanding, skill, and experience needed to capitalize on these challenges.