Frac Spread: Crude, Gas Prices Buckling Under Pressure
The spread of the coronavirus, a warm winter and high inventories are depressing the prices of oil, gas and NGL.
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Joseph Markman manages editing and production for Oil and Gas Investor magazine and all Hart Energy print publications. He joined Hart Energy in 2010 after more than 20 years in the daily newspaper business, most of them with the Houston Chronicle. Markman has also written and edited for Newsday and The Jerusalem Post. At Hart Energy, he served as editor for Stratas Advisors, and senior editor for Midstream Business magazine and the HartEnergy.com website. He earned his bachelor of science degree in journalism from the University of Illinois at Urbana-Champaign.
The spread of the coronavirus, a warm winter and high inventories are depressing the prices of oil, gas and NGL.
Ethane, propane and natural gas continue to drop, dragged down by high inventories and warm winter weather.
NGL prices continue to slump, but the plunge in natural gas results in improved margins.
Natural gas, ethane and propane struggle with too much output and more to come.
Oil prices retreat after the Middle East tensions eased, but stronger fundamentals could emerge if trade initiatives succeed.
The regulatory changes to NEPA would streamline the federal permitting approval process for major projects but critics lambast the retreat from climate change requirements.
Last week’s dip was slight, but NGL haunted by ghost of December prices past.
Not only will the ethane cracker be supplied by the Marcellus and Utica shales, but the customers for its polyethylene are within a 700-mile radius.
High inventory will keep prices stable, says Greg Haas of Stratas Advisors; NGL prices struggle in the past week.
DNV GL attributes the forecast to the rapid electrification of the global transport sector.
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