Midstream Infrastructure Growth Matches Escalating Shale Play Activity

The American Oil & Gas Reporter

The emergence of shale plays not only has changed the dynamics of the natural gas industry in North America, but it also is creating billions of dollars in growth opportunities for the midstream industry to provide treating, processing, storage and transportation infrastructure to get the new supplies of shale gas to market.

“It really is exciting,” says Billy Lemmons, one of three managing partners of EnCap Flatrock Midstream. “The new shale resource plays have great repeatability on the upstream side, and the midstream follows the success of the upstream. About 14,000 wells have been drilled over the past decade in the Barnett Shale (with more than 8 trillion cubic feet of cumulative gas produced to date, according to reports). As in the Barnett, large numbers of wells are being drilled in each shale gas play. Every one of those wells needs pipe and other midstream infrastructure.”

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