Business school theories can seem basic, but there are some frameworks and buzzwords that can be a useful lens to view the current midstream landscape—more useful because so much has changed in the sector in a short period of time. The first concept is the industry life cycle, which includes five stages: startup, growth, shakeout, maturity and decline. The growth phase for midstream was roughly the decade that ended in 2014, with high capex to build infrastructure in support of high production growth from unconventional development of shale basins. The sector then had an unusually long shakeout period that ended at some point in the past few years, typified by new entrants competing margin away, leading to fewer viable companies.
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