Deloitte’s View: 2014 Spending Shifts from Upstream to Midstream

From time to time it's helpful to zoom out to the "40,000-foot view" of the oil and gas industry, because understanding the bigger picture helps us understand the smaller picture that MDN concentrates on--the Marcellus and Utica Shale. One of the better analysts of the bigger picture (in our humble opinion) is consulting powerhouse Deloitte. John England, Deloitte’s U.S. Oil & Gas leader, recently posted a 40,000-foot view of what's happening in the oil and gas sector in the U.S.--and where he believes it's headed in 2014. England, quoting the Oil & Gas Journal, says E&P (exploration and production) spending in the U.S. was $354.8 billion in 2013. However, spending on the midstream--the pipelines and processing plants that get all of that production to market--was only $46.4 billion in 2013 (although that's up 360% from the $12.8 billion spent on midstream in 2012). England says as we head into 2014, look for investments to continue shifting from the upstream sector (E&P) to the midstream sector--to infrastructure like pipelines and processing plants, refinery operations, and petrochemical facilities. MDN concurs. Just reference our massive list of 111 midstream/infrastructure projects underway or planned in the Marcellus/Utica (see MDN’s 2013 Databook Vol 2 Finds Staggering $40B in NE Midstream Projects). Here's England's take on where we've been, and where we're headed in 2014...

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