US Rig Count Posts Largest Weekly Decline In Three Years

US oil and gas rig count was clobbered this week, falling by 17 rigs to 731 for the week ending May 12, according to Baker Hughes. This weeks decline was led by gas focused basins, and represents the largest weekly decline in three years.

Flight Demand Spikes As Prices Tumble

Implied demand for jet fuel soared nearly 400 Mb/d to 1.9 MMb/d last week, as passengers take to the skies heading into the summer travel season. This rise in demand was preceded by a steady slide in jet fuel prices, which have fallen from $2.62/gal to $2.10/gal over the past five weeks.

Hydrogen Update

News and Highlights

Weekly U.S. Propane Inventories Smash Industry Expectations

The EIA reported that total U.S. propane/propylene inventories had a strong build of 3.1 MMbbl for the week ended May 5, the third-largest increase in the last 10 years for the reporting period and well above industry expectations for a 1.3 MMbbl build. Total U.S.

Western Canadian Natural Gas Production Falls Due to Wildfires in Alberta

Wildfires in the west and northwest of Alberta have negatively impacted natural gas production by nearly 3 Bcf/d (>15%) over this past weekend as some production and gas processing sites were forced to shut down.

China Top Importer of U.S. Crude in March: Census Bureau

Crude oil exports from the U.S. topped 146 MMbbl (4.7 MMb/d) in March – the highest noted since the ban on crude oil exports was lifted in December 2015, according to the latest data released by the U.S. Census Bureau.

Let’s Get This Party Started - Wave of New Gulf Coast NGL Fractionation Capacity On the Way

With Targa’s new NGL Frac 10 announcement last week during its quarterly earnings conference call, midstream companies are expecting to add over 1 million barrels per day of fractionation capacity on the Texas Gulf Coast between 4Q22-1Q25.

US LNG Feedgas Drops Temporarily While Demand on Track to Outpace Last Summer

Overall feedgas last week averaged 12.37 Bcf/d, down 420 MMcf/d week-on-week. The drop was primarily driven by lower flows to Cameron, where Train 2 is currently offline for maintenance.

Are NGL Prices Low or High? Can They Be Both at the Same Time?

Over the past ten years, the average price for a basket of NGL products in Mont Belvieu, TX (graph below) has averaged $28.60/bbl (orange dashed line), from a low of $17.15/bbl in 2020, to a high of $42.60/bbl last year. To date in 2023, the NGL basket has averaged $30/bbl, very close to the 10-

U.S. LNG Exports Help European Natural Gas Storage End Winter at Record Level

Europe ended the 2022-23 winter heating season with natural gas storage inventories that were 56% full, the highest on record, due in large part to favorable weather and increasing LNG exports from the U.S.

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