Edit ModuleShow Tags

U.S. Producers Target Wet Gas Production

EIA says hydrocarbon liquids enhance profits


Published:

The U.S. Energy Information Administration (EIA) says the relatively high value of hydrocarbon liquids has driven producers to focus on wet gas production.

It said high production levels have depressed gas prices but the liquids in wet gas -- ethane, propane, butanes, and natural gasoline -- are linked to crude oil and give wet gas a significant price premium over pipeline-quality dry gas.

It said the natural gas plant liquids composite spot price (which approximates a value of liquids produced at gas processing plants) is about halfway between West Texas Intermediate (WTI) crude oil and natural gas spot prices.

EIA said wet gas production is increasing at a faster rate than dry gas. “Between 2008 and 2013, volumes of liquids produced from wet natural gas grew at an average of 7% annually, with increases concentrated in the Gulf Coast.”

It said increased liquids production has depressed NGL prices, particularly ethane and propane. Some ethane, which is currently priced below natural gas, is being left in the dry gas stream, a phenomenon known as ethane rejection. EIA said ethane rejection volumes range between 200 and 400 million bbl/day.

Edit ModuleShow Tags

Archive »Archive »

Opcon Selling Compressor, Waste Heat Business

Opcon AB, the energy and environmental technology group, has signed a Memorandum of Understanding (MoU) to sell part of its compressor technology and waste heat recovery business.

St. Clair Compressor Station Gets Upgrade

Consumers Energy is looking to improve the St. Clair Compressor Station, Ira Township, Michigan, with a US$165 million upgrade.

Capstone Microturbines To Power Two New Shale Compressor Stations

Capstone Turbine received orders from E-Finity Distributed Generation for microturbines to be used for oil and gas operations in the Marcellus and Utica Shale regions.

DCL Nets PICA As New Distributor

DCL America Inc. has added a new distributor for its Northeastern United States - Power Ignition and Controls Appalachia (PICA).

Caterpillar Releases Valves, Seats For Pressure Pumping Customers

Caterpillar has released its Cat valves and seats for well stimulation pump fluid ends. Cat 4- and 5-series valves and seats are designed to maximize interchangeability across the Cat well stimulation fluid end line and be dimensionally compatible with industry standard fluid ends in the 2000 to 3000 hp (1491 to 2237 kW) range. Fluid end valves and seats are highly-consumed parts in well stimulation operations and, as a result, are frequently replaced. Historically, Caterpillar uses valves and seats obtained from alternate sources. Caterpillar’s new fluid end valves and seats provide decreased wear and extended life to pressure pumping customers, the company said. The material life of the fluid ends is extended by optimizing the geometry of the Cat valve and seat, increasing the contact area and improving the distribution of forces, resulting in reduced material fatigue, Cat said. The flow area is increased by balancing the pressure drop across the Cat valves, reducing flow restrictions and the potential for cavitation. Additionally, impact forces are reduced as the contact area between valve and seat has nearly doubled from previous designs. Caterpillar manufacturers a line of pressure pumps with maximum inputs ranging from 600 to 3000 bhp (447 to 2237 kW). The new valves and seats can be ordered from the global Cat dealer network.