Midstream Energy MLPs and the Lack-of-Commodity-Price-Exposure Myth - Level 2 Energy Fundamentals
Here is an outstanding article about why MLPs are not as good as some people say and why the price of natural gas will remain low far longer than you can ever imagine. As the author mentioned, pipeline oil and gas prices are not directly tied to commodity prices, but the "flow volumes" effect the income of pipeline companies. So, if oil and gas companies cannot afford to pump from their wells, their transfer volumes will fall and hurt MLPs.
Secondly, the much hyped exporting of natural gas is taking way too long to unfold. We need to apply "Murphy's Law" here that other things will go wrong. In addition, the changeover of power plants from coal to natural gas is also taking a long time. Hence, the demand and price for natural gas may remain low for quite some time.
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