- Published on Wednesday, 20 November 2013 12:21
- Written by Chris Guy
The surge in domestic production of shale gas and tight oil – resulting from the technological advances in hydraulic fracturing and horizontal drilling – has created an unprecedented demand for infrastructure to connect these newfound resources with refineries and processing plants. As a result, according to a new report from the Deloitte Center for Energy Solutions, the midstream sector, once expected to enter a stage of maturity by 2006, has entered a high-growth phase requiring significant amounts of capital investment to meet growing infrastructure needs.
Midstream is now the third largest sector of the U.S. oil and gas industry, behind the supermajors and large independents. During this transformative period, "midstream majors" will emerge, equal in size, market power and strength to some of their counterparts in the upstream sector.