Main Office

200, 340 Midpark Way SE

Calgary, AB T2X 1P1

Phone: 403-452-3713

Fax: 403-452-3769

Remote Office Locations

Central Alberta: 780-400-9095
Norther Alberta: 780-882-9019
Saskatchewan: 306-539-9711

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What is Midstream?

Why Investing in the Midstream Market is Good for the Canadian Economy

What is Midstream?

The Midstream sector serves a vital role in the 101 billion-dollars-a-year national oil and gas industry.

It provides countless economic benefits to Canadians across the country but many people are unaware of how crucial the Midstream sector is to the success of the oil and gas industry as well as the Canadian economy as a whole.

Along with the services they provide, Midstream companies offer economic stability because they are somewhat immune to the turmoil caused by price fluctuations in the industry due to their stable fee-based business model.  Upstream and Downstream producers solely rely on the services provided by Midstream companies.

 

Midstream companies transport and transform raw hydrocarbons produced by a well into usable materials for refineries and petrochemical plants. It is known as the storage, processing, and shipping stage for the three main products of the Canadian energy industry – crude oil / petroleum, natural gas, and NGLs (natural gas liquids).

 

 

Midstream companies have an opportunity to earn revenue from each service they provide from storage, processing, and transportation of the hydrocarbons (the unrefined energy products).  They also earn revenue from regulated tariffs charged because of cross border transportation. Lastly, many Midstream companies create revenue from commodity-based margins – this is when a Midstream company buys the hydrocarbons from a drilling producer, processes it, then sells the processed material to a refinery (where the final product is made) for a higher value.

 

Midstream companies come in all shapes and sizes. Some Midstream companies own only the pipeline, processing and storage facilities, other Midstream companies only focus on certain energy products, while others earn revenue from servicing all areas, (transportation, processing, storage and tariffs) where earned profit is based on the difference between owning the raw commodity and selling the processed energy product.

 

However, the Midstream business is not completely immune to economic uncertainty due to rising government costs, the burden of inefficient regulations, and the lack of Midstream assets and infrastructure to move Canadian energy to the growing global markets.

 

For the foreseeable future, oil and natural gas are going to be one of the largest contributors to the Canadian economy. As the world’s population grows and our living standards advances, so does the global need for oil and gas. As we continue to rely on this rich resource for our economic stability, investing in the Midstream market is one of the most reliable ways to grow our oil and gas industry along with the Canadian economy.

 


 

Devin and AiM Midstream team have the knowledge and expertise to complete all necessary steps to get the Midstream projects done, and done for the best price. Below are a few of AiM’s Midstream Service Offerings:

  • Right of Way (ROW) Acquisition
  • Stakeholder Consultation and Negotiation
  • Regulatory Compliance
  • Document Preparation and Data Management
  • Stakeholder Consultation and Negotiation

Reach out to Devin to discuss your Midstream Project.

AIM-Land Circle R2
Devin Fisher
Project Manager – Midstream

dfisher@aimland.ca

D: 403-648-5406
C: 403-993-0942