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Back You are here: Home News Industry Headlines End-User News Deloitte: Shale Production Reinvigorating Midstream Growth

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Deloitte: Shale Production Reinvigorating Midstream Growth

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.   

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