Texas Midstream: Opportunities & Challenges

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The energy state has become more diverse than ever, confounding some long-held assumptions.

By Paul Hart

...So where are the opportunities? That’s easy: the Permian. It’s the one unconventional play that has bucked the trend of sharply lower activity during the current downturn because of its multi-play/multi-pay geology and in-place midstream infrastructure. “Of course, the Permian is going gangbusters,” Haas said “As far as oil infrastructure, and gas and NGL infrastructure throughout the producing regions of Texas, it looks like the Permian is the one that will have the majority of the growth for the next several years.

“That could proceed past 2020 in terms of the preeminence, in terms of its growth position relative to other plays in the country,” he added. “And, that would mean that if you’re gathering or if you’re processing, or if you’re fractionating, and you have proximity and/or access to the new barrels or new gas coming out of the Permian, then that’s probably part of your growth story as a midstream operator.”

Kurt King, partner at Opportune, an energy management consulting firm, agreed.

“I think it’s fairly obvious that the Permian is the most economical play right now,” King told Midstream Business. There is the continued buildout of gathering and takeaway capacity in that region—to get oil to as many markets as midstream operators can from an optionality perspective; to get oil and condensate to the Gulf in particular. And when it comes to natural gas, the focus is more on exports to Mexico or down to the LNG plants on the Gulf Coast.”

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