Investments in pipelines, processing plants and othertransportation facilities have historically been seen as relatively low riskbecause of their typical double-digit rates of return, said Tony Weber, chief operatingofficer of Natural Gas Partners, a private equity fund.
But the same risks that play into upstream investments are acomparable factor for midstream investors as well, he said.
"In the upstream part of our business, you hear about dryholes all the time, you hear about people who bought the wrong acreage, whopaid too much for it or they drilled wells that weren't economic," he said on apanel at the IHS CeraWeek conference in Houston.
