The recent boom in domestic shale oil and gas production, as well as the advanced age of pipeline infrastructure, creates the need for significant development, refurbishment, maintenance, and testing of oil and gas transportation and storage infrastructure.
As domestic oil and gas production continues to grow, U.S operators are aggressively seeking new outlets for their product. This activity is driving demand for increased domestic storage and a greater focus on international outlets for oil and LNG. As a result, our nation’s oil and gas transportation and storage infrastructure is coming under increased capacity stress. As new energy production centers emerge and the U.S.’s role in the global energy market continues to grow, the midstream transportation market must also change in order to meet new market requirements. Despite political challenges, major new interstate pipeline projects are in the works, along with miles of gathering systems to supply them. At the same time, the burgeoning development of new oil and gas transportation infrastructure, often in and around major population centers, is coming under increasing scrutiny for safety and environmental impact.
We are focused on the companies that provide services and equipment to midstream operators. These companies are positioned to benefit from long-term growth in our nation’s energy transportation and storage infrastructure, as well as greater safety and environment standards which create demand for additional services and equipment. Companies operating in this sector also benefit from the steady, predictable nature of the midstream demand.