Easier To Buy Than To Build -- July 23, 2015

Two days ago I posted:

With regard to oil, this is where we are:

• service companies have hit bottom, and are starting to recover
• too early to tell which drillers will survive, which won't; we'll know by this time next year (2016) 
• cheaper to buy pipelines than build new ones

Now, this article sent to me by a reader. Yes, it is easier to buy existing pipelines than to build new ones: 

Houston-based midstream companies are facing an unexpected level of resistance from regulators in the construction of pipelines across the U.S., and are thus pivoting away from organic projects and looking to M&A to achieve distribution goals.

As one example, on the road to New England:

Just this week, town councilors in Londonderry, New Hampshire unanimously voted for a resolution opposing Kinder Morgan's proposedTennessee Gas Pipeline.

And so, echoing what I wrote two days ago:

"With the realization that the (shale) boom isn’t all things to all people, now some of the midstream organic projects have run into regulatory delays. You’re not able to put capital in as quickly, so this might be where you see M&A. M&A might be the only means by which you can meet (the) distribution demand."