For the first time, the US exports more oil than it imports. Gabriel Moreen, Managing Director, US MLPs & Pipelines, explains how that impacts the midstream energy sector.
Video Transcript:
Not long ago, the US depended heavily on oil and gas imports. Now, with the discovery of vast oil reserves in places like Texas’ Permian Basin, the US is exporting more product than ever before.
Gabriel Moreen: This in turn translates to MLPs and midstream energy companies being more closely tied to what's going on in the global energy scene. So we are looking at things like what's happening in the Middle East, whether the price of oil will up or go lower, and whether that will mean more demand for US energy infrastructure.
US-China trade talks also have major implications for midstream energy. China is viewed as a natural market for US energy exports. If the US and China resolve trade differences favorably, it could provide more opportunity for MLP’s to build infrastructure to meet Chinese and Asian demand. Overall, midstream energy growth is closely tied to the US becoming a global energy powerhouse.