A speaking role for a midstream guy at Winter NAPE might be unusual, but for Alan Armstrong, president and CEO of Williams Cos., his message was an imperative.
“Boy, it really is a sign of the changing times when a midstream guy is up here speaking at a NAPE conference,” he joked.
During his presentation at the recent business conference in Houston, Armstrong urged oil and gas producers to map out midstream takeaway when planning future work in plays.
“There is so much resistance today getting the infrastructure built out that is critical to developing into these long-haul markets,” he said. “I’m here today to tell you that this really needs your attention.”
Armstrong, who has been busy processing and transporting the spoils of the U.S. shale revolution, said he has seen a growing disconnect between producers and the downstream markets. The pending demand coming from power generation conversions to natural gas from coal might spell even more trouble for getting resources to market.
From a long-term view, he said the ability to get infrastructure built out and keep North American products in key markets is one of the biggest challenges the industry faces.
“That is, from my perspective, the Achilles’ heel of this great North American energy story,” he said.
Armstrong said he admires the ingenuity and innovation that he has seen from the E&P space. Because of producers, hundreds of thousands of jobs have been created in the oil and gas industry and even more in the manufacturing services business.
“Make no doubt about it—whether it’s on the demand side or whether it’s on the producing side, we’re growing our business because this group has demonstrated their ability to innovate and to continue to lower the cost of production in the space,” he said.
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