Ethane in Mont Belvieu posted at 22.5 cnts/gal on Friday, continuing the NGL’s descent into the abyss that started mid-2012. The last time we saw ethane at this level was back in 2002. With natural gas prices hanging in there above $3.00/MMbtu, there is no doubt about it. We are deep into ethane rejection economics. Not just for the Conway market like we had last summer. But wide spread, across the board, knock-out-the-ethane style rejection, unlike anything we’ve seen in the last five years. In fact, this is something new. Impending widespread rejection in the world of shale… a world of ultra-rich gas, deep ethane cuts, and constrained infrastructure. Today we’ll drill down deep into the numbers. It’s enough to make you crazy.
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