Economic Pressure Coming Down the Pipe, Upstream Slowdown Begins Affecting Midstream

SUGAR LAND--December 1, 2015--Researched by Industrial Info Resources (Sugar Land, Texas)--As oil prices continue to show no sign of breaking over $60 per barrel, the midstream industry is beginning to sweat as the pressure that has been on producers since the price drop begins to work its way down the pipe from upstream to midstream. A drop in new production in the Denver-Julesburg (DJ) basin has been named as the cause behind the recent combination of the 200,000 barrel-per-day (BBL/d) Saddlehorn pipeline project by Magellan Midstream Partners (NYSE:MMP) (Tulsa, Oklahoma), and the 130,000 BBL/d Grand Mesa pipeline project, which is owned by NGL Energy Partners LP (NYSE:NGL) (Tulsa, Oklahoma) and operated by Rimrock Midstream LLC (Plano, Texas). Within this article: Details smaller oil pipeline projects that have been delayed, canceled or put on hold due to the drop in oil prices.