Weekly Natural Gas EIA Storage Report for March 12th

Weekly Natural Gas EIA Storage Report for March 12th

Here are the latest details from the U.S. Energy Information Administration regarding natural gas inventories.

Although crude oil and natural gas production declined, the U.S. production of natural gas plant liquids (NGPL), including ethane, propane, isobutane, natural gasoline, grew in 2020.

The annual average of NGPL production rose 7.0% in 2020, reaching 5.2 mbpd. U.S. field production of crude oil and natural gas both suffered over this period, decreasing by 7.7% and 1.9%.

When ethane demand is low and thus pushes prices lower relative to natural gas prices, natural gas processing plant operators tend to leave ethane in its unprocessed state and sell it into the market – a process known as ethane rejection.

Usually, when ethane prices rise more than natural gas prices on a heat-value basis, natural gas processing plant operators may want to recover the ethane and other products and sell it for their original market value.

Sources: eia.gov

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.