Monthly Production Stream: August

Webinar Overview: Demand is Coming, Where Will the Supply Come From – and Who’s Going to Deliver?

The largest growth cycle in U.S. energy demand is on deck, and the infrastructure required to meet it could reshape U.S. energy markets over the next decade.

LNG infrastructure in the Lower 48 and Mexico could grow by 45 Bcf/d by 2035, while gas-fired power generation serving data centers could add another 7.6 Bcf/d of natural gas demand. More than 32 Bcf/d of major pipeline expansions and new builds have already been proposed to connect growing supply with LNG, power, residential and commercial demand.

And natural gas is only part of the story.

Across the energy value chain, infrastructure is tightening and billions of dollars are being put to work:

• Natural Gas: Midstream consolidation is accelerating as operators position themselves from wellhead to water, including Williams’ move to acquire Momentum.
• Crude Oil: Permian takeaway is already running tight, with routes to Corpus Christi at roughly 99% utilization and Cushing/Houston routes at 92%. With only about 75 Mb/d of expansion on the books, takeaway capacity could become a constraint on future Permian growth.
• NGLs: Nearly 1,200 Mb/d of Y-Grade and purity product expansions are proposed out of the Permian alone, while Mont Belvieu could face more than 1,000 Mb/d of fractionation constraints by 2032. Potential pipeline conversions could further reshape NGL flows.
• Capital: Roughly $32 billion per year of infrastructure has been sanctioned and underwritten by long-term contracts through 2031 — representing more than $191 billion of committed capital over the next five years.

Where are the biggest infrastructure gaps? Which projects get built? And which companies are positioned to capture the opportunity?