On 12 May 2026, the U.S. Energy Information Administration revised its Short-Term Energy Outlook, projecting global oil inventories to draw down at 2.6 million barrels per day in 2026, nearly nine times faster than its April forecast of 0.3 million barrels per day. These signals strengthen tailwinds for upstream oil & gas in the U.S., including midstream water companies.
Two months into the Iran conflict, U.S. oil & gas production has held steady despite severe global supply disruptions. As the world’s leading producer—accounting for nearly 40% of global crude output and 37% of natural gas—the U.S. recorded 13.6 million barrels per day in 2025.
U.S. production discipline, highlighted by stable rig counts and surging international demand, are strengthening the US$26 billion U.S. midstream water segment on two fronts: Domestic output will increase produced water volumes while the global appetite for energy independence is driving new investment in U.S.-style midstream infrastructure.
