United States Midstream Oil and Gas Market, By Sector (Transportation, Storage and Terminals), By Region, Competition, Forecast and Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 20.78 Billion
CAGR (2026-2031)	3.78%
Fastest Growing Segment	Transportation
Largest Market	South
Market Size (2031)	USD 25.96 Billion

Market Overview

The United States Midstream Oil and Gas Market will grow from USD 20.78 Billion in 2025 to USD 25.96 Billion by 2031 at a 3.78% CAGR. The United States Midstream Oil and Gas Market encompasses the infrastructure and services responsible for the transportation, storage, wholesale marketing, and processing of crude oil, natural gas, and refined petroleum products. A primary driver of this sector is the sustained rise in domestic hydrocarbon production which necessitates expanded network capacity to efficiently move resources from extraction basins to refineries and export terminals. According to the American Petroleum Institute, in 2024, the United States exported approximately 31% of its total crude oil production and 20% of its natural gas production to global markets, highlighting the critical role of midstream logistics in supporting international energy trade.

Despite these positive growth factors, the market faces a significant challenge arising from regulatory complexities and environmental opposition to new infrastructure projects. Stringent permitting processes and legal interventions frequently delay or cancel essential pipeline developments, creating logistical bottlenecks that restrict the flow of energy supplies and impede the overall expansion of the sector.

Key Market Drivers

The surge in unconventional shale oil and natural gas production acts as a foundational catalyst for the midstream sector, necessitating extensive development in gathering systems and pipeline networks. As extraction activities intensify in key basins like the Permian and Eagle Ford, the demand for infrastructure to transport hydrocarbons from wellheads to processing plants and refineries has escalated proportionately. This production boom requires continuous expansion of network capacity to prevent bottlenecks and ensure efficient market delivery. According to the U.S. Energy Information Administration, December 2025, in the 'Short-Term Energy Outlook', U.S. crude oil production was estimated to reach a record average of 13.2 million barrels per day in 2024. To accommodate such substantial volumes, the industry has aggressively scaled its transmission capabilities. According to the U.S. Energy Information Administration, March 2025, in the 'Natural Gas Pipeline Projects' tracker, operators completed projects increasing takeaway capacity by approximately 6.5 billion cubic feet per day across major production regions in 2024.

Concurrently, the expansion of Liquefied Natural Gas (LNG) and crude oil export infrastructure significantly reshapes the market by shifting energy flows toward coastal terminals. The geopolitical demand for energy security and price differentials have accelerated the construction of liquefaction trains and deep-water docks, particularly along the Gulf Coast. This trend forces the realignment of logistics to support unidirectional flows toward global trade hubs rather than solely serving domestic consumption. According to the U.S. Energy Information Administration, March 2025, in the 'Today in Energy' report, the United States exported 11.9 billion cubic feet per day of liquefied natural gas in 2024, maintaining its position as the world’s largest exporter. This export-oriented growth compels midstream companies to maintain high throughput levels and invest in modernization to ensure reliable supply chains connecting inland shale plays to international markets.

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Key Market Challenges

Regulatory complexities and environmental opposition represent a substantial barrier to the growth of the United States Midstream Oil and Gas Market. Stringent permitting processes and frequent legal challenges create uncertainty that discourages capital investment in essential infrastructure. When pipeline projects are delayed or cancelled due to administrative hurdles, it results in logistical bottlenecks that prevent the efficient transport of hydrocarbons from extraction basins to refineries and export terminals. This infrastructure deficit constrains the market’s ability to align high domestic production levels with global demand, ultimately increasing transportation costs and reducing overall supply chain efficiency.

The extended timelines required for regulatory compliance have a direct negative impact on project viability and market expansion. The unpredictability of the approval process means that capital is often tied up for years without a guarantee of project completion. According to the Interstate Natural Gas Association of America, in 2025, the federal permitting review process for complex energy infrastructure projects was reported to take up to 72 months to complete. Such prolonged delays severely hamper the industry's agility, restricting the flow of energy supplies and limiting the sector's contribution to the broader economy.

Key Market Trends

The development of gas infrastructure to support data center power demand is emerging as a critical growth vector for the midstream sector, driven by the exponential energy requirements of artificial intelligence and cloud computing facilities. As hyperscale technology companies seek reliable, 24/7 baseload power that renewables alone cannot provide, midstream operators are aggressively expanding pipeline capacity and extending laterals to feed natural gas-fired power generation plants. This shift represents a pivot from traditional export-led growth to domestic industrial demand, forcing companies to upgrade transmission networks in key digital hub regions to ensure grid stability. According to Enbridge Inc., August 2025, in a press release regarding its strategic outlook, the company approved approximately $2 billion in new energy projects, including natural gas infrastructure and solar facilities, specifically to meet the surging power demand from data centers and industrial sectors.

Strategic consolidation of midstream operators through mergers and acquisitions is simultaneously reshaping the competitive landscape as companies seek to achieve economies of scale and integrate value chains in a mature market environment. Faced with high regulatory barriers to building new greenfield pipelines, major players are opting to acquire existing assets to secure immediate capacity and optimize "wellhead-to-water" logistics, particularly in prolific basins like the Permian. This trend allows firms to reduce operational costs, enhance leverage metrics, and capture higher margins by controlling processing and transport across the entire stream. According to Targa Resources Corp., December 2025, in a corporate announcement, the company entered a definitive agreement to acquire Stakeholder Midstream, LLC for $1.25 billion, a move designed to significantly expand its gathering and processing footprint in the Permian Basin.

Segmental Insights

The transportation segment is currently identified as the fastest-growing category within the United States midstream oil and gas market. This expansion is primarily driven by surging production volumes in major shale basins, such as the Permian, which necessitates extensive pipeline infrastructure to convey resources to refineries and export terminals. The U.S. Energy Information Administration indicates that rising output levels are outpacing existing network capacities, prompting significant investment in new transmission projects. Consequently, the industry is prioritizing the development of pipeline systems to efficiently manage the increasing movement of crude oil and natural gas across the country.

Regional Insights

The South region maintains a leading position in the United States midstream oil and gas market due to the concentration of major production sites and export infrastructure along the Gulf Coast. States such as Texas and Louisiana host extensive pipeline networks and storage facilities that connect the Permian Basin to domestic and international markets. According to the Energy Information Administration, significant regional production volumes require robust capacity for gathering, processing, and transportation. This established industrial framework ensures the South remains the central hub for energy distribution and logistics across the country.

Recent Developments

• In October 2024, ONEOK, Inc. concluded the acquisition of Medallion Midstream, LLC from Global Infrastructure Partners for a total cash consideration of approximately $2.6 billion. This transaction provided ONEOK with the largest privately held crude oil gathering and transportation system in the Midland Basin, a critical region for the United States Midstream Oil and Gas Market. The acquired assets included over 1,200 miles of crude oil gathering pipelines and approximately 1.5 million barrels of storage capacity. The company anticipated realizing significant commercial synergies by connecting these new gathering systems with its existing long-haul crude oil pipelines.
• In October 2024, Enterprise Products Partners L.P. completed the acquisition of Piñon Midstream, LLC for $950 million in cash. This debt-free transaction expanded the company’s footprint in the Delaware Basin of Texas and New Mexico, a key area in the United States Midstream Oil and Gas Market. The acquired assets comprised approximately 50 miles of natural gas gathering and redelivery pipelines, along with treating facilities that process sour natural gas. This acquisition provided a strategic entry point into the eastern flank of the basin, accelerating the company's ability to offer reliable processing services to regional producers.
• In July 2024, Energy Transfer LP completed the acquisition of WTG Midstream Holdings LLC in a transaction valued at approximately $3.25 billion. The deal consisted of $2.45 billion in cash and approximately 50.8 million newly issued common units. This strategic move significantly expanded the company’s infrastructure in the United States Midstream Oil and Gas Market, specifically within the Permian Basin. The acquisition added more than 6,000 miles of complementary gas gathering pipelines and eight gas processing plants with a combined capacity of roughly 1.3 billion cubic feet per day, enhancing the company’s ability to transport and process growing natural gas volumes.
• In May 2024, Sunoco LP finalized the acquisition of NuStar Energy L.P. in an all-equity transaction valued at approximately $7.3 billion, including assumed debt. Under the terms of the agreement, NuStar unitholders received 0.400 Sunoco common units for each NuStar common unit. This merger diversified Sunoco's operations across the United States Midstream Oil and Gas Market by combining two stable business models, thereby strengthening the company's financial foundation and credit profile. The company projected that the integration would yield at least $150 million in expense and commercial synergies, supporting continued growth in distributable cash flow.

Key Market Players

• EnergyTrans Innovations LLC
• PetroSafe Solutions LLC
• TransConnect Logistics LLC
• Midstream Dynamics Corporation
• Streamline Energy Partners LLC
• InterPipeline USA Inc.
• CoreEnergy Midstream LLC
• Visionary Oil & Gas Services LLC
• Nexus Midstream Solutions LLC
• InfraOil America Inc.

By Sector	By Region
Transportation Storage Terminals	Northeast Midwest South West

Report Scope:

In this report, the United States Midstream Oil and Gas Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Midstream Oil and Gas Market, By Sector:

• Transportation
• Storage
• Terminals

• United States Midstream Oil and Gas Market, By Region:

• Northeast
• Midwest
• South
• West