As geopolitical tensions between Iran and Israel escalate, the global energy markets are once again on edge. Recent developments, including Iranian missile strikes on Tel Aviv and Israel's ground operations in southern Lebanon, have rattled investor confidence. The rising fear that the conflict in the Middle East could disrupt supply from key oil-producing nations has already triggered a surge in oil prices.
The effects of market volatility are generally more subdued for the midstream energy sector, which plays a critical role in transporting and storing oil and natural gas. These companies' operational models are designed to offer stability, largely insulated from fluctuating commodity prices. In the current climate of uncertainty, midstream firms are proving their resilience by maintaining steady revenue streams through long-term contracts, even as oil prices spike.
Stability in Unstable Times
Midstream energy companies, which manage essential infrastructure like pipelines and storage facilities, typically operate under long-term "take-or-pay" contracts. These contracts guarantee ...
