File number: A035/0040
Publication time: October 4, 2018
US Energy Knowledge Series Four
US hydrocarbon gas liquid production and consumption
Wangnengquan
The United States is the world's largest oil and natural gas producer today. What the public and the media are concerned about is the production and consumption of oil and gas in the United States.不过，产量巨大的石油和天然气，还带来了一个重要的副产品，即烃类气体液。 The wide variety of hydrocarbon gas liquids is not only an important part of the US energy production and consumption, but also an important export commodity. Its position in the world's energy and chemical industries is becoming increasingly important.
Based on materials such as the U.S. Energy Information Administration, this article uses detailed numbers to introduce the basic situation of the current production, consumption and import and export of hydrocarbon gas liquids in the U.S., so that the industry and the public can have a deeper understanding of the U.S. oil and gas industry. It should be noted that due to the lightness of statistics, there are certain gaps in the relevant statistical data of different statistical institutions and the same statistical institutions; some industries have no unified translation names, American place names and institutions, and the text is only one's own understanding and may not be accurate. Please understand and correct it.
1. Basic concepts of hydrocarbon gas liquids
From the most basic chemical concept, oil and natural gas are both called hydrocarbons. Hydrocarbon gas liquid or hydrocarbon gas liquid, in English, refers to liquid hydrocarbon compounds in gaseous and pressured states under normal pressure. The main ones are: ethane , propane , butane and pentane alkanes, ethylene , propyl, butene and isobutene olefins. Hydrocarbon gas liquids, which are part of oil and natural gas, are produced in natural gas treatment plants and oil refining processes. In the United States, natural gas plant liquids (NGP) account for the majority of hydrocarbon gas liquids, mainly alkanes; while the hydrocarbon gas liquids produced during oil refining are mainly olefins.
Hydrocarbon gas liquids are widely used, mainly including: raw materials for chemical companies to produce chemicals, plastics and synthetic rubber, fuel for heating, cooking and drying, fuel for transportation, additives for automotive gasoline, diluents for heavy oil transportation, etc.
2. Production, consumption and transportation of hydrocarbon gas liquids in the United States
In 2016, 13% of U.S. oil consumption was hydrocarbon gas liquids, which was an important part of U.S. oil consumption.
In 2016, the production of hydrocarbon gas liquids in the United States was 4.14 million barrels per day, mainly composed of the following products: ethylene, 36%; ethane, 31%; natural gasoline, 10%; n-butane , 8%; isobutane , 8%; olefins produced by refineries, 7%.
In 2016, the hydrocarbon gas liquid produced by the United States during natural gas treatment was 3.51 million barrels per day, accounting for 84.78% of the total hydrocarbon gas liquid production in the United States that year. The main components are: ethane, 36%; ethylene, 33%; natural gasoline, 13%; isobutane, 10%; n-butane, 8%.
In 2016, the United States produced 630,000 barrels per day of hydrocarbon gas liquids during crude oil processing, accounting for 15.22% of the total US hydrocarbon gas liquid production that year, and the main components are: ethylene, 48%; propylene, , 44%; n-butane, 8%.
In 2016, the production of propane in the United States was 1.47 million barrels per day, 79% of which were produced in natural gas treatment plants and 21% were produced in refineries. Generally in the fall and winter, the United States will import some propane from Canada through railroads, which will be used in rural areas of the Midwest, East Coast and Rocky Mountains and supplement the lack of seasonal heating fuel.
Hydrocarbon gas liquids are widely used. In 2016, the U.S. hydrocarbon gas liquid consumption was 2.54 million barrels per day, of which 45% is ethane, 33% is propane, 12% is refinery propylene, 5% is isobutane, 3% is n-butane, and 3% is natural gasoline. In terms of end use, 83% of the hydrocarbon gas liquids consumed in the United States in 2016 were used in industry, 12% for residents, 4% for commercial purposes, and 1% for transportation.
For many consumers, propane is the most familiar and most used hydrocarbon gas liquid, and it is common to LPG.对于很多边远地区的消费者和农场，丙烷是非常重要的燃料。 The most important consumption area of propane is civilian use, mainly used for heating, especially in winter. In addition, some propane is also used in commercial, industrial, agricultural and transportation industries. For example, in 2016, the proportion of propane consumption in the US transportation industry was only about 1%. According to the 2015 edition of "Civil Energy Consumption Overview", 11.8 million households in the United States use propane as their main fuel, and 42 million households use propane in outdoor barbecue. In 2009, 70% of the propane consumed in the United States was used for heating, 16% were used for boiling water, and 14% were used for other purposes. From the perspective of consumption areas, 39% of the propane consumed in the United States in 2009 were used in the Midwest, 29% were used in the South, 16% were used in the West, and 16% were used in the Northeast.
Judging from the transportation tools used, there are five main ways to transport hydrocarbon gas liquids: pipelines, railways, trucks, special ships and barges . From the perspective of product form, there are five ways to transport hydrocarbon gas liquid: Y-grade, the original state of no separated hydrocarbon gas liquid; E-P mixed state, in most states, 80% ethane and 20% propane; P/P mixed state, propane and propylene mixture of refineries; LPG, propane, n-butane and isobutane mixture; final products, such as ethane, propane and n-butane, etc. Among them, pipeline transportation is generally a hydrocarbon gas liquid from the production site to the storage site, and also from the separation plant to the processing or production plant. It is mainly in the Y-level state, and some hydrocarbon gas liquids in the E-P mixed state, P/P mixed state and LPG are also transported through the pipeline. Through railways and trucks, products of hydrocarbon gas liquids are mainly transported to consumers. To import or export hydrocarbon gas liquids, special ships must be used, which must be pressed or frozen, or must be frozen under pressure. For example, short-distance transport of propane and n-butane, special barges can also be used.
The storage of hydrocarbon gas liquids is also very complex, and special methods, materials and equipment are required to use according to different product properties.
III. Import and export of hydrocarbon gas liquids in the United States
The United States is a net exporter of hydrocarbon gas liquids. The hydrocarbon gas liquid produced is greater than the consumption, and some hydrocarbon gas liquids will be imported only due to seasonal factors. In addition, due to the need for chemical production, the United States will import some propylene.
In 2016, the United States imported 180,000 barrels per day, accounting for 8% of the import volume of petroleum products, including crude oil, of which 67% are propane, 12% are n-butane and isobutane, natural gasoline is 8%, and propylene and n-butene are 14%.
Most of the propane and butane imported by the United States are derived from Canada through railways and are supplied to the Midwest and Northeastern regions of the United States. They are highly seasonal. Two-thirds of them are between October and March each year, and are mainly used to keep heating and mix gasoline in cold weather.
In 2016, 89% of the hydrocarbon gas liquid imported by the United States came from Canada, and the rest were imported from other countries in the world by sea, with only one-seventh of the export volume.
Since 2007, the export volume of hydrocarbon gas liquids in the United States has been growing, from 70,000 barrels per day in 2007 to 1.2 million barrels per day in 2016, which is about 20% of U.S. oil exports. In 2016, 66% of the hydrocarbon gas liquids exported by the United States were propane, 17% were natural gasoline, 10% were n-butane and isobutane, and 8% were ethane.
In 2016, the United States exported propane to 56 countries around the world, of which the top five countries were: Japan, 19%; Mexico, , 14%; China, 12%; Netherlands, 8%; South Korea, 7%.
In 2016, 99% of the natural gasoline exported by the United States was exported to Canada to blend oil produced in Canadian Alberta oil sands, and most of this oil was exported to the United States through pipelines and railways.
IV. Price changes of hydrocarbon gas liquid in the United States
Generally speaking, the price of hydrocarbon gas liquid is closely related to oil and natural gas, and is affected by market supply and demand.
Before 2009, since the United States was a net importer of propane and other hydrocarbon gas liquids, and these resources were mutually substitutable, the spot prices of natural gas, crude oil and propane in the United States were highly correlated with the spot prices of WTI. The supply and demand relationship in the international market directly determined the price trend of propane and other hydrocarbon gas liquids.
As the United States has changed from a net importer of propane to a net exporter, in 2011, the spot price of propane at Montbellvi in Texas Trading Center was separated from the prices of crude oil and gasoline, naphtha and other oil products. In 2013 and 2014, the price of propane continued to decline due to the sharp increase in production and inventory of propane, which greatly exceeded the port's export capacity.
2012年初，正丁烷的价格也发生了同丙烷价格同样的变化。 In early 2013, due to high export costs, the price of isobutane gradually approached propane. Although the price of US hydrocarbon gas liquids is shrinking from the absolute quantity (USD/BTC unit per BTC unit), the relative discount on US hydrocarbon gas liquid prices reached an all-time high due to the continuous decline in crude oil prices and high export costs.
Until 2008, the US ethane price followed the spot price of crude oil. With the continuous increase in ethane production and limited growth in domestic consumption, ethane prices have de-linked from crude oil and have followed the price trend of natural gas since mid-2012. Since ethane as fuel is a substitute relationship with natural gas and can be reinjected to the pipeline, the current price of ethane in the United States is calculated based on calorific value.
The retail price of propane is mainly affected by market supply and demand and transportation costs. Affected by the annual start of oil refineries and gas treatment plants, propane production is also year-round, but its consumption is seasonal. In spring and summer, propane demand is very small, mainly to establish inventory, consumption is mainly in autumn and winter, and sometimes part of propane is also required to import in winter. Therefore, there is a large seasonal variation in propane prices. At the same time, since the consumption area is far away from the production area, transportation costs account for a large proportion of propane price. For example, consumers on the East Coast of the United States have paid high propane prices.
In the winter of 2013-2014, the retail price of propane in the United States reached a historical high, mainly because of the bumper corn harvest this year. In addition, the sudden cold and humid weather from October to December, farmers in the Midwest of the United States needed a large amount of propane dry food. At this time, due to problems in pipeline and railway logistics, the inventory was insufficient, and the price of propane continued to rise. In the fourth week of January 2014, the average U.S. civilian propane price reached a record $4 per gallon, up 75% from the same period in 2013.其中，中西部平均民用丙烷价格达到4.2美元/加仑，比2013年同期上涨了137%。
(Note: On September 12, 2018, after the "How much does American Energy Know Series" preview, the content of the article was revised again during the 18th China-US Oil and Gas Industry Forum. After completing the documentary of attending the meeting in the United States, 10 articles in this series will be officially published from October 1, 2018, making this series more complete. It should be noted that due to time constraints, some of the attached pictures of this series of articles will no longer be translated into Chinese.)
Disclaimer: The articles I wrote and published are only personal research experience, do not represent any organization or unit, and do not constitute any investment advice.
