In the current economic and geopolitical landscape, the U.S. midstream energy infrastructure industry is well-positioned for long-term growth. The production boom in the U.S. energy sector has solidified the importance of U.S. oil and gas, along with the infrastructure required, in the global energy mix for decades to come. Midstream energy infrastructure companies offer attractive strategic allocation opportunities due to their resilience, diversification, and income benefits.
The industry has benefited from record U.S. oil and gas production, which has led to increased demand for midstream pipelines and infrastructure to channel exports, particularly to developing markets. The U.S. has become a leading energy exporter, with a focus on expanding capacity in LNG exports. Non-OECD countries, especially emerging markets, are expected to drive global energy demand growth. Industries such as manufacturing, construction, and long-distance transportation still heavily rely on oil and gas, as cost-effective substitutes are currently lacking.
The U.S. midstream infrastructure industry presents an attractive investment case as it plays a crucial role in delivering energy around the world. Midstream energy companies have demonstrated resilience, raised distributions, and reduced leverage, making them appealing options for investors. The stability and income benefits of midstream energy infrastructure, combined with the continued demand for oil and gas, position the industry for long-term growth.
[EnergyPortal.eu]
[Global X]
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