NGL Profitability Weakens Amid Rising U.S. Supply

摘要

Prices for natural gas liquids, or NGLs, have dropped precipitously this year amid growing supplies, weakening the profitability of a key driver of the U.S. shale development. Extracting NGLs, such as ethane, propane and butane, is still more attractive than producing dry natural gas, but it's not as robust as it was nine months ago, according to Ernst & Young's Oil & Gas Center's quarterly analysis. NGL production has surged over the last few years as oil and gas producers dramatically changed their drilling focus from dry to liquids-rich gas in a bid to boost profits. But supply has outpaced demand, primarily from chemical plants that use NGLs as feedstock for plastics.