According to the U.S. Energy Information Administration, the production of natural gas liquids from the Utica and Marcellus Shales is anticipated to exceed 650,000 barrels per day by year 2016. Numerous projections for wet gas production are astounding, especially in West Virginia and Ohio. The anticipated amount of oil and gas reserves in the Utica and Marcellus Shales could set new precedents for production records, but the massive growth is not only good news for energy enterprises. It is phenomenal news for midstream businesses and local communities.
A Race to Take Advantage of the Shale Boom
Various enterprises are quickly building new infrastructure to keep up with production, but permanent infrastructure cannot currently meet all needs. Midstream businesses have numerous opportunities to thrive when providing services for transportation and services for permanent infrastructure. There are some new players in the industry, which are mostly in the midstream sector. Rising concerns regarding safety and rising needs for effective transportation are a tremendous benefit to the midstream sector, which has grown steadily in the industry over the past several years.
The Midstream Sector Has Unprecedented Opportunities
Currently, midstream corporations are starting to establish powerful brands in an emerging industry. After all, the crude oil and natural gas mining industry was practically off the radar until about five years ago. Instead of only a race to get work, there is a race to build lasting reputations in a unique domestic industry for U.S. companies. Additionally, midstream business has the opportunity to capitalize on various regulations put in place by local governments.
One common requirement for mining and infrastructure operations is to hire a largely local workforce. Businesses in the downstream sector cannot typically hire a local workforce for sites for obvious reasons. However, the midstream sector gives the entire industry almost unprecedented political support and backing. Politicians can bring new commerce and jobs to rural areas, and various enterprises can continue large-scale mining projects than might otherwise be frowned upon by local governments.
A New Industry and New Opportunities for an Entire Nation
The energy crisis in the U.S. has been in the media for several years. Midstream business connects mining operations that are viewed as abstract by many Americans with real people and real jobs that are more familiar, such as ground transportation. Overall, the crude oil and natural gas mining industry is a sustainable way to ship and distribute domestic products. It can help solve economic difficulties in rural locations currently, and it can help solve the ongoing energy crisis in a number of years.
Challenges for Large Mining Operations in the Crude Oil and Natural Gas Industry
The crude oil and natural gas mining industry has to find increasingly effective ways to partner with the right midstream businesses. The emerging industry is met with a number of inherent challenges, many of which are not particularly unique. For example, design-build projects for large-scale infrastructure are frequently required to hire local businesses for a percentage of all work that meet a certain set of parameters. The next generation of mining shows a clear growth pattern along with the midstream sector. The midstream sector literally and figuratively connects different aspects of crude oil and natural gas mining in order to garter necessary funds and political support.