Midstream is in a rough spot. With the shale industry under attack from OPEC+ and demand taking a hit from COVID-19, overall energy demand looks rather bleak, particularly in crude oil. Even the quality names in the space have been shellacked, trading at significantly depressed valuations. In order for these numbers to be justifiable, we would need to see a complete upheaval in the still nascent American energy industry.
But have we been here before? From the middle of 2014 to early 2016, the energy industry faced one of the steepest declines in oil prices