Message from Dan:
I recently attended my fifth Midstream conference in Pittsburgh. It allows me to get a feel about what to expect from the market. I summarized my notes to share with you! Below are five things that I walked away with…
We are clearly in a time of abundance of energy resources and the price won’t improve until there is a fix for the production surplus.
The Marcellus and Utica play is now viewed as one of if not the largest reserves in the world. Many call it the Saudi America.
We should see the price of natural gas head up between the summer of 16 and summer of 17, primarily due to reduction of the drilling for oil, causing a reduction in the natural gas output and the start of export.
The midstream market did a good job of not overbuilding and most midstream companies are well positioned to take advantage of a market uptick with many projects positioned to happen quickly when the time is right.
The large transmission projects planned will and need to move ahead but will be delayed in many cases due to permitting .
In summary, the future is bright for those involved with the transportation and processing of hydrocarbons, particularly those in the Utica and Marcellus region. It will be filled with ups and downs but those who can position themselves to help reduce costs and be responsive to market conditions will be the winners.
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Message from Dan: