Understanding the NGL Tagalong Effect
Strong growth in natural gas liquids (NGL) production, coupled with high foreign prices, prompts substantial export opportunities and questions about capabilities, infrastructure
Media Contact: Jon Haubert | 303.396.5996
Austin, TX (Dec. 13, 2017) – In the latest installment of its Fundamental Edge series, Drillinginfo has released NGL Exports, an overview of how natural gas liquids (NGLs) fit into today’s commodity market story.
“Steady production in crude oil and natural gas production brings a third commodity into the fold, natural gas liquids (NGLs), one investors may be overlooking right now,” said Bernadette Johnson, Vice President of Market Intelligence at Drillinginfo and lead author of this report.
“The U.S. has seen significant production growth in the last few years, creating a tagalong effect for NGLs to follow suit. The markets and the media put a lot of attention on crude oil, and rightfully so, but NGLs are another important fuel and supply growth brings investment opportunities. Strong growth in NGL production, coupled with high foreign prices, has prompted substantial export development in the U.S. over the last few years. Supply is expected to continue to outpace domestic demand and with that comes discussion about capabilities and future infrastructure needs,” added Johnson.
This report explores further NGL growth in the U.S.
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