The streak had to end at some point. During the week of April 2, ethane margins turned negative at both Conway and Mont Belvieu. Margins had been running at positive, albeit very slim, levels for the previous month.
Economic activity is heating up in the Bakken, but operators and major players need to continue to effectively communicate production results and estimations, according to Subash Chandra, senior E&P analyst and managing director of Jeffries LLC.
Perhaps the most maddening aspect of Colorado’s current political situation may be that the oil and gas industry faces a bitter fight at the polls over use of a drilling technology that has been used for more than six decades.
Ethane rejection remains the norm throughout the country, but there are signs of hope for traders as margins have continued to remain theoretically positive throughout the end of the winter and early spring.