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Oil and Natural Gas Rig Counts Hit a Post–October 2009 Low (Part 10 of 11) (Continued from Part 9) The EIA estimates natural gas liquids production
Natural gas liquids (or NGLs) are hydrocarbons. They’re produced when wet natural gases, mainly methane and condensable heavier hydrocarbons, are processed in natural gas plants. NGLs mainly include ethane, propane, butanes, and natural gasoline.
According to the U.S. Energy Information Administration’s (or EIA) latest “Short-Term Energy Outlook” (or STEO), the production of hydrocarbon gas liquids (or HGLs) at natural gas liquids plants should increase from 2.6 million barrels per day (or MMBbl/d) in 2013 to 3.2 MMBbl/d in 2015 and 3.5 million bbl/d in 2016.
HGLs include NGLs and olefins such as propylene and ethylene. Olefin is used to produce polymers. Polymers are used in plastics.
Most of this growth is expected to come from additional ethane and propane production. Demand for ethylene and propylene in the domestic petrochemical industry is growing. Demand for exports is also growing.
NGLs are ahead of natural gas production
Between January 2011 and December 2014, NGL production, including refinery gas, increased by 48%. It increased from 65.5 million barrels per month to 96.7 million barrels per month.
Over the same period, dry natural gas production increased by only ~24%.
NGLs help make drilling for wet gas feasible for producers such as EOG Resources (EOG), Concho Resources (CXO), Laredo Petroleum Holdings (LPI), and Chesapeake Energy Corporation (CHK). Some of these companies are components of the Energy Sector Select SPDR ETF (XLE). EOG Resources makes up 2% of the iShares Global Energy ETF (IXC).
Read the following part of this series to learn about natural gas liquids’ price movement relative to crude oil and natural gas prices.
Continue to Part 11 Browse this series on Market Realist:
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Chesapeake Energy Corporation
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DEVELOPMENT STAGE |
CODE : CHK |
ISIN : US1651671075 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Chesapeake Energy is a producing company based in United states of america. Chesapeake Energy develops natural gas and oil in USA. Its main asset in development is DEEP BOSSIER in USA. Chesapeake Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 83.7 billions as of today (€ 78.2 billions). Its stock quote reached its lowest recent point on March 13, 2020 at US$ 0.12, and its highest recent level on November 18, 2022 at US$ 99.94. Chesapeake Energy has 909 242 558 shares outstanding. |