NGLs Analytics and Insight: Rebalancing NGLs in an Unconventional North America
We are on the threshold of a wave of new natural gas liquids (NGLs) supply that offers potentially significant opportunities for all participants along the NGLs value chain.
Premise for a Study of North American Natural Gas Liquids
We are on the threshold of a wave of new natural gas liquids (NGLs) supply that offers potentially significant opportunities for all participants along the NGLs value chain, from producers to end users, as well as investors. However, the enormous potential of these new NGLs supplies is accompanied by a number of challenges to companies interested in fully realizing the benefits afforded by these new NGLs-related business opportunities.
- Growth prospects for shale gas and NGLs production. North American NGLs production is poised to increase sharply in conjunction with expected rapid growth in gas production, particularly from shale gas and tight oil formations.
- Diversity in shale gas liquids composition. As the principal contributors to the growth in NGLs supplies, shale gas plays prove to have surprisingly diverse compositions. Within certain shale plays there can be a fine line between significant volumes of associated gas liquids and relatively "dry" gas.
- Expected benefit from NGLs for shale gas economics. The market value of associated gas liquids generally provides an economic benefit and increases the viability of shale gas project economics, especially in low gas price environments.
- Impact of excess supply availability. In an environment of ample NGLs supplies, finding markets to absorb the associated gas liquids may be a challenge, as traditional end uses become saturated, increasing the likelihood that gas liquids prices could become depressed.
- Challenges to realizing full shale gas potential. In some shale gas plays, such as the Marcellus, gas located in some of the wetter portions of the play may not be produced because either the facilities to extract and transport the liquids are inadequate or local market demand is insufficient to support NGLs development.
There is diversity of wet gas within shale plays
Purpose Of The Study
Recognizing the many NGLs-related opportunities, issues and challenges affecting the potential for future shale gas development, IHS is undertaking a study to engage all segments in the North American NGLs supply chain (including gas production, fractionation, transportation and end uses).
The study will:
- Define the current landscape of conventional gas, shale gas and tight oil plays and their related NGLs supply, demand and price trends
- Identify the critical issues affecting the development of shale gas as they pertain to every segment of the NGLs supply chain
- Prepare a comprehensive outlook (a Planning Case scenario) for NGLs supply, demand and price for each gas liquids product in every region for all major shale gas plays in North America
- Extending beyond the normal outlook for NGLs markets, this study will also examine the impact of uncertainty on the robustness of the North American NGLs outlook by preparing two fully quantified alternative scenarios covering all study elements
For more information,
+1 800 447-2273
Europe, Middle East & Africa
+44 (0) 1344 328 300
+44 (0) 1344 328 300