After officials at Royal Dutch Shell announced plans in March to pull back on infrastructure projects in North America, there were some questions over what this meant for the company’s proposed world-scale ethane cracker that would be built outside of Pittsburgh, Pa. The answer appears to be that the project is still moving forward.
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.