Re: The real fear of midstream MLPs, IMHO
You enumerate some of the fears out there, and they are a real drag on prices. Around the ethylene issue, shutting down older crackers most likely means shutting down naptha feedstock crackers. That might cause refining product spreads to be shifted but the newest efficient crackers are ethane (NGL) -> ethylene. Long term plastics issues, sure there is pressure, there is also massive population growth and new lighter products including cars, that continue to consume more and more plastic. I would rather see products made from hydrocarbons than energy, but I also believe that hydrocarbon energy will have a continued volatile future.
That's not helping the prices now and may not in the future. I'm counting on distributions for my investing returns in this space.