- Public producers have been committed to capital discipline and limiting growth, which could actually set up a Goldilocks US production scenario for midstream in 2022.
- Modest volume growth by producers would contribute to a stronger macro backdrop and improved sentiment for energy broadly, while allowing midstream to potentially enjoy some incremental cash flows.
- For the last several years, midstream equities have tended to trade more in line with oil prices than production trends.
For further details see:
U.S. Production Outlook: Modest Growth Could Be Just Right