The oil and gas industry has registered substantial returns fueled by rising prices over this year. Oil prices have posted solid gains this week. On the other hand, analysts expect the oil and gas pipeline market to grow significantly over the upcoming years. Fundamentally sound oil and gas pipeline stocks Enterprise Products (EPD), MPLX (NYSE:MPLX), Oasis (OMP), and Martin (MMLP) are expected to gain from the industry tailwinds. The recent dips in these stocks could be the right opportunity to bet on them.Fossil fuel companies have experienced an unprecedented rise in their profits, raking in billions of dollars in the first nine months of this year. In the third quarter, gas prices in the country have increased by 50% year-over-year to an average of $3.40 per gallon. After posting solid gains earlier in the week, oil prices steadied at around $75 per barrel on December 8.
The United States Energy Information Administration (EIA) estimated that four billion cubic feet per day (Bcf/d) of new natural gas pipeline capacity has entered into the service over the third quarter of this year. Moreover, the oil and gas pipeline market worldwide is expected to increase at a CAGR of more than 6% from 2021 to 2026.
Given this favorable backdrop, it might be profitable to scoop up these fundamentally strong oil and gas pipeline stocks Enterprise Products Partners L.P. (NYSE:EPD), MPLX LP (MPLX), Oasis Midstream Partners LP (NASDAQ:OMP), and Martin Midstream Partners L.P. (NASDAQ:MMLP), and take advantage of their recent dips.