The Economics of Reliability - US and Canada Midstream Oil & Gas
After two turbulent years of fluctuating oil prices, midstream operators are looking to capitalize on the recent increase in commodity prices. However, inflation, increased regulations, and the global shortage of available labor has increased the cost of maintaining existing assets. After years of taking on a massive amount of debt, midstream operators are feeling the pressure to achieve sustainable and reliable operations. The Economics of Reliability – US and Canada Midstream Oil & Gas is the sixth report in the Economics of Reliability Report series. In this report, Pinnacle analysts dive into the impact that reliability has on the midstream industry. Throughout this report, we analyze the financial and operational data of 20 publicly traded midstream operators headquartered in the US and Canada—such as Enterprise Products, Kinder Morgan, Enbridge—and identify the key trends that are driving reliability.
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Key Insights from this Report
- Midstream companies are operating at lower investment levels than history would suggest, putting the spotlight on the performance of existing assets.
- Margin compression is driving an even more intense focus on operational improvements.
- Midstream companies have aggressively taken on debt, potentially starving capital from reliability programs.
- Given recent failures, the midstream sector faces urgency to invest aggressively in reliability while eliminating wasted spend.
