United States Oil and Gas Midstream Market Size (2024 - 2029)

United States Oil and Gas Midstream Market Size Summary

The US oil and gas midstream market is poised for growth, driven by increasing investments in pipeline infrastructure and the rising production and consumption of oil and gas. The market demonstrated resilience during the COVID-19 pandemic, with sustained demand for storage and transportation services. The transportation segment, in particular, is expected to lead market expansion, supported by numerous pipeline projects and the development of complex offshore fields. The growing network of gas pipelines is anticipated to significantly contribute to market growth, as pipelines remain the most cost-effective method for transporting hydrocarbons over long distances. Despite challenges such as crude oil price volatility and fluctuating consumption levels, the market is set to benefit from upcoming LNG terminal projects and the ongoing demand for midstream services.

The US midstream sector is characterized by a fragmented landscape with key players like American Midstream Partners LP, Chevron Inc., BP PLC, Tenaris SA, and Shell Midstream Partners LP. The market is further bolstered by strategic agreements and infrastructure developments, such as the expansion of the Dakota Access Pipeline and the Delta Lateral project by Kern River Gas Transmission Co. The increasing demand for natural gas, particularly in the power sector, underscores the importance of a robust transportation network. Initiatives by the US Department of Energy to streamline the export process for small-scale LNG projects are expected to enhance the market's growth prospects. As the US continues to expand its natural gas infrastructure, significant investments are anticipated to meet the burgeoning demand.