• 3 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 8 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 10 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 11 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 3 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 3 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 3 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 4 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 4 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 4 days India Needs Help To Boost Oil Production
  • 4 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 4 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 4 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 4 days District Judge Rules Dakota Access Can Continue Operating
  • 5 days Surprise Oil Inventory Build Shocks Markets
  • 5 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 5 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 5 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 5 days Oil M&A Deals Set To Rise
  • 5 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 6 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 6 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 6 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 6 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 6 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 6 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 7 days The Capital Of Coal Is Looking For Other Options

This Year's Best News For U.S. Shale Gas

Comes from Scotland. In the petrochemicals sector.

As I discussed on Monday, the fate of U.S. natural gas production is increasingly tied to liquids. Commodities like ethane and propane produced alongside natgas from shale wells.

Selling these co-products has allowed many gas producers to stay profitable, even at low natgas prices.

And now the rest of the world wants a piece of America's growing natural gas liquids supply.

Related article: Rising Slag Heaps of Petcoke in Midwest Arouse Environmental Concerns

Especially European petrochemical giant Ineos. Who said this week it will build an ethane import terminal at its Grangemouth ethylene cracker complex in Scotland.

Ineos' Grangemouth facility formerly sourced feedstock ethane from nearby North Sea gas fields. But with natgas liquids production falling here, the company is looking further afield for supply. The new import terminal will allow the company to bring in ethane from around the world.

And especially from America. The company said it intends to target imports of low-cost ethane from U.S. shale plays.

This is the second time the company has looked to the U.S. for ethane supply. In September the firm signed a long-term supply agreement with major Marcellus shale gas producer Range Resources, for imports to its facilities in Norway.

At the moment, such shipments are hampered by one problem: a complete lack of ethane export facilities in America.

Related article: Frack-Water Recycling, an Emerging Market

But that's changing. Export projects like the Mariner East pipeline from the Marcellus shale are scheduled to come on line in the next couple of years. Allowing ethane to be shipped from the U.S. east coast.

Such developments will be greats news for U.S. producers. Domestic ethane prices have collapsed lately. So accessing higher prices from international consumers like Ineos would be a welcome shot in the arm.

The resulting boost in profitability from liquids exports would help support natural gas drilling in plays like the Marcellus. Great for producers--although not necessarily for the natgas price. Which could be weighed down by more supply if drilling continues apace at higher liquids pricing.

Here's to global markets,

By. Dave Forest




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News