Plant products must not be of great value. Prices on statement vary, 32 cents per unit in one case. In layman’s terms, what are these products sold as? Thanks
They are sold as liquids and the price is per gallon.
Yes, plant product, or “Natural Gas Liquid” (NGLs), units are typically gallons on statements.
Price depends on WHICH product quite a bit. Ethane (C2H6) is quite cheap per gallon and sometimes not processed out of the gas for that reason. It’s also the most common plant product (methane nearly always kept in gaseous form, accounting for ~99% of the molecules in processed “dry” natural gas). Pentanes (C5H10) are usually the higher priced products.
The “blend” of plant products (% of ethane, propane, butane, etc recovered for each gallon of plant product recovered) for each individual well also varies greatly due reservoir conditions, surface facilities, and age of the well.
Plant products have taken a bit of hit with COVID since many of the more valuable products are tied to transportation like jet fuel and blends for gasoline. When you take taxes out of the average gasoline price, we’re nationally only at ~$1/gal, and that’s for the “higher value” products.
Historically plant products have ran ~25-50% of the value of crude oil.
Tracy, great answer. Very thorough. I like the grafic.
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