The midstream sector is a crucial link in the oil and gas supply chain; like the industry at large it faces a series of risks as the energy transition unfolds. However, analysis to date has focused on the threats to the upstream and downstream[1] while midstream’s fate remains relatively underexplored.

Expanding on Carbon Tracker’s previous work,[2] this note gives an overview of the risks to midstream operators from the transition to a low-carbon world and aims to inform the decision-making of a range of stakeholders.

In a nutshell, because midstream operators provide services rather than products, their revenue models may be different from those used by their counterparties in the extraction and refining business. Nevertheless, there is no escaping the longer-term risks of the energy transition away from oil and gas. In the long run, companies transporting and storing hydrocarbons risk suffering from a combination of lower volumes, increased costs, and lower prices.


[1] See our reports “Unburnable Carbon”,; “Adapt to Survive”,; “Margin Call”;
[2] See our report “Pipe Dreams”,