November NGL production declined in the US

OREANDA-NEWS. NGL production at natural gas field plants across the US declined by 53,000 b/d in November to 3.073mn b/d, following record production the month before.

The decline in production may have been related to freeze-offs at the wellhead, spurred by a cold snap across parts of the US, but was unlikely the outcome of declining production as a result of low oil prices.

Rig counts across North America were steady between October and November, totaling 1,925 both months, according to Baker Hughes.

Propane production tapered by 1,000 b/d to 1.034mn b/d in November, while ethane production fell to 2.2pc to 1.069mn b/d. The decline in ethane production comes as many petrochemical producers in the US began switching to a heavier feedslate to capture more favorable margins as propane prices slumped with crude and amid weak heating-related demand.

Ethane rejection this year has been pegged at up to 450,000-480,000 b/d.

At Mont Belvieu, propane averaged 80.4с/USG in November, down from 113.3с/USG in October and 118.3с/USG in November of the prior year, according to Argus data.

The heating fuel has weakened further in the past two months, averaging 47.7с/USG in January.

In heavy products, isobutane production declined by 1,000 b/d to 277,000 b/d and normal butane production dipped by 4,000 b/d to 299,000 b/d.

Production of natural gasoline dipped by 6pc to 395,000 b/d.

In the Bakken shale, NGL production declined by 8,000 b/d to 110,000 b/d in November. That shale region had also seen record production in October.

Production in the Marcellus and Utica shales also declined by 6,000 b/d in November, averaging 231,000 b/d, led by a drop in ethane production which fell 4,000 b/d to 69,000 b/d.