Right Midstream Strategies Enable Oil And Gas Producers To Maximize Profitability By Bill Gautreaux KANSAS CITY, MO.-Oil and gas producers naturally focus on what is in the ground: finding and extracting valuable commodities. But the operator who wants to maximize the value of that production also needs to look strategically at the downstream markets and how to connect with the best buyers for crude oil, dry natural gas and natural gas liquids. Making skillful use of the midstream value chain-gathering, processing, storage, transportation and marketing-can enhance producers' returns and maximize the value of resources over the life cycle of a field. With the right decisions upfront and during production ramp-up, producers can accomplish two goals. They can assure flow to maintain and handle consistent and growing production. And they can maximize net backs through connections and optionality to reach the best market destinations. It sounds simple, but ensuring a smooth path from the wellhead to a central delivery point, processing plant or energy end-user can be very complex. Success in the midstream demands a strategic perspective, looking downstream from the fields into the marketplace. JUNE 2014 137