NGL hedging takes off amid shale gas boom
No molecule left behind
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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