NGL prices reach highest point in year for second week in a row, led by pentanes plus.
Oil markets will rebalance in the near term, but natural gas imbalances will be much longer-term, the long-time oil and gas executive told the recent Houston Producers Forum.
Wood Mac report concludes that costs, not Russian production, will determine success of U.S. LNG exports.
Robust exports, along with reduced production of propane, propels hypothetical NGL barrel to highest price since early May 2015.
NGL prices slip from last week’s high as the storage crunch eases and the energy industry awaits the long-term impact of massive wildfire in western Canada.
Led by propane, all components move up except for ethane; storage passes 2.6 Tcf.
Although prices are higher, E&Ps aren’t out of the woods yet, an analyst said. They could see their margins squeezed as production costs begin to creep higher.
Stoppages in power, fuel and transport sectors during nationwide rolling strike planned for May 26 and May 27, are aimed at forcing government to withdraw planned labor reform bill, Reuters said.
Above $50 a barrel, oil was seen by many market players as breaching a psychological barrier that could lead producers, particularly among U.S. shale companies, to revive operations scrapped in recent years.
A militant group called the Niger Delta Avengers, which has told oil firms to leave the Delta before the end of May, said late on May 25 it had blown up the facility's mains electricity feed.
Key North American Hub Prices: May 26, 2016
North American Gas Hub Prices: May 25, 2016
Key North American Hub Prices: May 24, 2016
David Hooker, managing director, said permitting process for LPG storage will begin, and a 3-D seismic operation will be carried out. A test well will be drilled and the salt will be cored.
As E&Ps become more efficient at finding ways to grow production, the midstream sector is getting ready to handle what comes its way when commodity prices rise by improving infrastructure.
Heavy bitumen in oil sands is not flammable, but facilities and people inside are at risk. Travis Fairweather, Alberta wildfire information officer, said forest fires are measured by “head fire intensity,” Reuters reported.
The 400-mile (644-km) pipeline transports petroleum products from Blaine, Washington to Portland, Ore.
According to CFO Mosaed al-Ohali, although SABIC will focus on its main chemicals products, it is considering coal-to-chemicals in China and also oil-to-chemicals operations, Reuters reported.