LyondellBasell (LYB) has had an awesome year, and it looks like that performance will continue on, with one of the major drivers being its extraordinarily profitable ethane.
Ethane is a "wet" byproduct of shale gas, aka natural gas liquids (NGLS), along with butane and propane. All three are profitable, but ethane probably has the best potential going forward.
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Showing posts with label Natural Gas Liquids. Show all posts
Showing posts with label Natural Gas Liquids. Show all posts
Saturday, June 1, 2013
Saturday, May 8, 2010
Chesapeake Energy (NYSE:CHK) Liquids Strategy
Most companies heavily weighted in natural gas, like Chesapeake Energy (NYSE:CHK), are using a strategy of developing a more balanced porfolio of assets in order to deal with the low price of natural gas, which probably won't rise in price much in the near term.
At this time Chesapeake has a ratio of about 90 percent natural gas to 10 percent liguids, and their goal is to bring it to 80 percent natural gas to 20 percent liquids.
Chesapeake said they'll be cutting their rig count to 105 rigs, or 12 percent as part of their strategy, while reducing it even more in 2011 by 17 percent as far as what they spend in the gas segment.
Ethane, butane, isobutane, propane and natural gasoline are natural gas liquids companies are gravitating towards.
At this time Chesapeake has a ratio of about 90 percent natural gas to 10 percent liguids, and their goal is to bring it to 80 percent natural gas to 20 percent liquids.
Chesapeake said they'll be cutting their rig count to 105 rigs, or 12 percent as part of their strategy, while reducing it even more in 2011 by 17 percent as far as what they spend in the gas segment.
Ethane, butane, isobutane, propane and natural gasoline are natural gas liquids companies are gravitating towards.
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