Margin squeeze has significant effect on US gas processors

Journal Article · Sat Jun 19 04:00:00 EDT 1982 · Oil Gas J.; (United States)

OSTI ID:6640726

Brewster, J; Cannon, R E

During the first quarter of 1982, tumbling prices for crude oil and products sharply affected natural gas liquids prices; oil price changes generally have an exaggerated effect on gas liquids prices because NGL volumes are so much smaller than those of crude and refined products. Always the most volatile sector of the US petroleum market, gas liquids experienced steep reverses this year, accentuated by the collapsing petrochemical demand, which toppled ethane demand and shrank propane prices; low motor gasoline demand, which affected butanes; and a nationwide natural gas surplus, which precluded the use of liquids (particularly propane) as substitute industrial and peakshaving fuels. In many cases, the gas processors' operating margin is now insufficient to cover operating costs.

• Research Organization: Gas Processors Association, Tulsa, OK
• OSTI ID: 6640726
• Journal Information: Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 80; ISSN OIGJA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
ALKANES
BUTANE
CORRELATIONS
ECONOMIC IMPACT
ENERGY SOURCES
ENERGY SURPLUSES
ETHANE
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GASOLINE
HYDROCARBONS
INDUSTRY
LIQUID FUELS
LIQUIDS
NATURAL GAS
NATURAL GAS INDUSTRY
NATURAL GAS LIQUIDS
NORTH AMERICA
ORGANIC COMPOUNDS
PETROCHEMICALS
PETROLEUM
PETROLEUM PRODUCTS
PRICES
PROFITS
PROPANE
SUPPLY AND DEMAND
USA