The Domino Effect
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This analysis explores how advancements in shale technologies are causing natural gas producers to pivot towards crude and liquids production. As gas production increases, prices are experiencing significant declines. The report discusses the implications for dry gas and coal producers, the impact on petrochemicals (petchems) revenues, and the downturn in NGL prices. Additionally, it highlights how LNG terminals and basis trading are affected by rising crude production, resulting in falling midcontinent crude prices and their effects on landlocked refineries.
The Domino Effect
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Presentation Transcript
The Domino Effect Shale Technologies > Natural Gas Producers Shift to Crude & Liquids Gas Production Increases Gas Prices Fall Dry Gas & CoalProducers Liquids Production Increases Petchems $$$$ NGL Prices Decline LNG Terminals & Basis Trading Crude Production Increases Midcontinent crude prices fall Land Locked Refineries $$$$ Wet and Associated Gas Increase Power Indust, Res/Com $$$$ Gas Prices stay low Propane & Fuel Oil Dist.