It’s Good to Be the King
If “liquids-rich” resource plays are King Midas for global O&G producers, then the U.S. holds full court. Reese Energy Consulting today is studying projections by the EIA that suggest NGL production will grow 32% to 5.8 Mmbpd by the year 2050. But don’t put those numbers in permanent marker just yet. The EIA continues to revise its projection numbers upward every month. So, where is all this increase happening? The Permian and Oklahoma’s SCOOP and STACK are bacon-sizzling with producers there enjoying high NGL-to-gas ratios and keeping the U.S. the world’s largest producer. With a slight case of the hiccups. Our prolific NGL production has outpaced the infrastructure required to transport, process and store these high-value hydrocarbons. Analysts predict that despite the backlog of construction needed, NGL production will continue to grow rapidly, and could increase by 2 million bpd in the next five years. To put our surplus in perspective, the U.S. exports nearly 40% of all NGLs we produce. What do you think?