Why Gas Producers Are Getting Crunched by the Shale Boom

Why Gas Producers Are Getting Crunched by the Shale Boom

by schaeferk@oilprice.com (Keith Schaefer)

North America's shale drilling revolution is taking a toll on natural gas producers.The reason?  The shale boom has generated a tremendous oversupply of Natural Gas Liquids (NGLs) – These are the byproduct gases and liquids like ethane, pentane, and propane which come out of the well alongside oil and regular natural gas. The supply glut, for its part, has forced a sharp drop in the price of NGLs in North America. And that is crunching the profits of gas producers. You see, for the last two years, many natural gas producers have been…Read more...