High NGL, natural gas prices make processing margins more volatile

A substantial shift in natural gas prices has increased returns for gas producers and provided incentive for increased drilling and well workover activity. Although natural gas and NGL prices have increased, NGL price movements have not precisely mirrored natural gas prices, a situation that has resulted in increased processing margin volatility.In the past, gas producers commonly lamented the gas "bubble" and worried that North American gas demand would never catch up with a seeming ocean of available gas supply. Click here to enlarge imageCurrently, the tight gas supply-demand balance is causing the longest sustained period of relatively high spot gas prices since the industry was deco...

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