NGL hedging takes off amid shale gas boom

No molecule left behind

NGLs - Butane

One of the lesser-known side effects of the US shale gas boom has been a surge in the supply of natural gas liquids (NGLs), which are by-products of natural gas drilling. As shale gas developers have unlocked huge new deposits of so-called wet gas – natural gas mixed with liquids – the supply of NGLs has climbed. In 2012, production of NGLs hit 2.4 million barrels per day, according to the US Energy Information Administration – a rise of 34% compared with 2008 (see figure 1, below).

The sudden

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