Global energy markets are acutely focused on North American energy independence and the possibility of exports of light tight oil and natural gas in the form of liquefied natural gas (LNG). Perhaps somewhat under the radar, the co-production of natural gas liquids (NGLs) has also soared, for ethane, propane, butane, isobutene, and pentanes and heavier constituents (C5+). As production has risen, NGL prices have fallen from $80 per barrel in 2003 to roughly $40 per barrel in first-quarter 2013. Mirroring the earlier natural gas shale gale and resultant price tumble in the North American natural gas market, energy markets are now weighing the risk of multiyear NGL price declines unless demand or exports ramp soon.
Exports of propane and propylene have already trebled since 2008, from 19 million barrels to 70 million barrels. Exports of normal butane and butylene have nearly doubled over that timeframe as well.
While the U.S. Department of Energy closely tracks these propane and butane exports, another NGL that is being exported under the radar is natural gasoline (C5+). Exporters are sending out natural gasoline is to be used by foreign operators as a refinery feedstock or blendstock, as a refined product, or even for use as a diluent.
Read the entire article in the May 2013 issue of Oil and Gas Investor.
Recommended Reading
Helix to Acquire Privately Held Alliance for $120 Million
2022-05-17 - In addition to a focus on well intervention and robotics operations, Helix is pursuing an energy transition business model, which CEO Owen Kratz says the expanded decommissioning presence from the Alliance acquisition furthers.
Minimizing Equipment Downtime with In-situ Seal Welding Technology
2022-03-11 - A seal welding technology has resulted in no requirement for an FPSO to return to port, and repairs can be carried out offshore to allow continued production and minimize costly equipment downtime.
OTC 2022: How BP is Optimizing Gulf of Mexico for Net-zero World
2022-05-02 - BP’s Starlee Sykes provided an inside look during an OTC keynote presentation on how the operator is optimizing all four of its producing hubs in the Gulf of Mexico as part of its net-zero goals.
Cloud-based Analytics: Did Someone Say Cost Discipline?
2022-05-17 - Cloud-based analytics offer a more efficient option for dealing with the large volumes of data that E&P companies typically generate.
Saudi Aramco Finds New Gas Fields in Four Regions
2022-02-28 - Two of the gas fields, Samna and Umm Khansar, are “non-conventional” or shale, according to Saudi Arabia Energy Minister Prince Abdulaziz bin Salman.