NGLs are a significant portion of what many international organizations refer to as U.S. “oil production.” It is important to recognize that roughly 2.5 mmbd of U.S. “oil” production is from NGLs, the majority of which are not substitutable for crude oil.
NGLs will be essential for the revenues of gas producers during prolonged periods of low natural gas prices.
Maintaining domestic oil and gas production is critical for U.S. NGL production and for the U.S. industrial sector.
Domestic infrastructure is currently ill-situated to harness new production: investments in new pipelines and petrochemical facilities are often delayed by the regulatory and permitting process.
U.S. NGL exports are important for reducing price volatility and incentivizing further production
According to the Energy Information Administration (EIA), total domestic NGL production increased from just over 1.7 million barrels per day (mmbd) in 2005 to nearly 2.5 mmbd in October 2012. In the years to come, NGLs will be a critical component of the industrial sector’s ability to take advantage of the U.S. hydrocarbon resurgence, and will play a large role in the country’s ambitions for energy “self-sufficiency.” By 2025, EIA estimates that NGLs production will account for roughly one-quarter of U.S. liquids supply.