From the Permian Basin to the Bakken, the upward tick in crude oil prices is getting the lion’s share of the headlines. Yet with infrastructure bottlenecks being alleviated, record LNG exports, and the long run of low pricing for natural gas and natural gas liquids retreating in the industry’s rearview mirror, natural gas is again an industry darling.
During the early stages of the pandemic, when crude oil demand collapsed, NGL pricing showed resilience. Demand remained strong for propane, one of the main NGLs, because of its many residential and commercial applications, which are as diverse as crop heating. The rest of the NGL mix–ethane, butane, isobutene, and natural gasoline–are major feedstocks for a variety of petrochemical products and fuels that remained in demand even during pandemic shutdowns.
It’s all looking better today. Crude oil demand is rebounding at a steady pace, and natural gas prices are strengthening as well. NGLs’ unique position in providing critical energy needs means renewed emphasis on efficiency and margins as the liquids are condensed from gas streams and moved to market.
Record NGL demand in the U.S. market and an exploding export market for propane and ethane underscore the need to rapidly transport NGL from the wellhead through the value chain. Price differentials also create an incentive for marketers to move NGL long distances to capitalize on higher prices.
To read more, click here to visit the featured interview in The American Oil and Gas Reporter’s January 2022 digital publication.
Headquartered in Tulsa, Oklahoma, W Energy Software offers the oil & gas industry’s only unified ERP solution built for the cloud that is relied on by more than 130 upstream and midstream companies to accelerate business performance, improve operational efficiency, and drive costs down. W Energy Software combines precision-built software in one extendable cloud-based workspace with an intimate understanding of the oil & gas business to deliver solutions that offer flexibility, affordability, and continuous upgrades. Unlike other ERP software that loosely ties together a mix of legacy solutions and fragmented technologies, W Energy Software designed a unified upstream and midstream ERP platform to seamlessly track oil, gas, and NGL from the wellhead through transportation and marketing, eliminating data silos as well as the burden and costs of maintaining multiple systems. With W Energy Software, oil & gas companies stay lean and agile with the tools they need to adapt to market changes and meet evolving customer needs head-on, all while gaining the confidence that their business is running on the latest technology. For more information, please visit www.wenergysoftware.com.
|Jeff O’Block, EVP Commodity Management, W Energy Software
Jeff O’Block was the founder of Chorus Logistics, a leading provider of cloud-based and mobile transportation management solutions, which was acquired by W Energy Software. Prior to that, Jeff co-founded Confirmation Corporation, a developer of software that provides confirmation services to subscribed trading companies which was acquired by the New York Mercantile Exchange in 2002. He also founded PSC Energy, a successful energy trading platform that became a popular trade capture, scheduling, and accounting system (now supported by Sungard).