Heating up: Industry growth will trend higher in line with natural gas production levels

Despite an increase in production, industry revenue has fallen in the past five years, due mostly to a steep drop in energy prices. As prices fall, industry revenue is expected to fall in 2016, compounding upon a difficult 2015. This drop is expected to lead to a drop in revenue over the five years to 2016. The industry is expected to continue expanding over the next five years, as natural gas extractors withdraw increasing quantities of natural gas. Additionally, the industry will benefit from a reblanced market, rising prices, increased export growth and a rise in the number of establishments. As the industry recovers from an abysmal 2015 and 2016, revenue is expected to grow over the five years to 2021...purchase to read more.

Industry Statistics & Market Size
Revenue
$12bn
Annual Growth 11-16
-24.1%
Forecast Growth 16-21
Profit
Employment
7,975
Businesses
482
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • As natural gas extractors withdraw increasing quantities of natural gas, the industry will expand
  • An increase in natural gas production typically leads to an increase in NGL production
  • Natural gas prices are expected to increase starting in 2017, coming off extreme lows in 2015 and 2016
  • Industry Report - Industry Locations Chapter

    Industry establishments are distributed according to the overall concentration of the oil and gas sector. In particular, natural gas processing plants are located near major natural gas extraction sites, because extracted raw natural gas must be processed before it can be distributed to end-users. Processing plants located near gas extraction sites can minimize gas transportation costs, making them more attractive to oil and gas extractors. Consequently, most gas processing plants are located near major gas extraction sites due to competitive pressures.The Southwest (49.3% of industry establishments), Rocky Mountains (18.4%) and Southeast (17.8%) regions are the most concentrated for gas processors. Texas alone is estimated to contain 34.2% o...purchase to read more.

    Additional Insights for the Natural Gas Liquid Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Natural Gas Liquid Processing Industry are

  • Ability to negotiate successfully with regulator
  • Supply contracts in place for key inputs
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Price of natural gas and US oil and gas production index in the Natural Gas Liquid Processing industry impact industry performance..

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    What's in this report

    What is the Natural Gas Liquid Processing Industry?

    This industry separates out natural gas liquids (NGLs) from natural gas. Natural gas arrives at processing facilities in a gaseous state, and processors clean the natural gas and extract liquid hydrocarbons including ethane, propane, butane, isobutane and natural gasoline. These liquids have various uses including home heating fuel, inputs in plastic products and heating or blowing fuel in industrial production. The production of NGLs from oil refining is not included in this industry.

    Industry Products
  • Pentane plus and natural gasoline
  • Ethane
  • Propane
  • Butane
  • Isobutane
  • Industry Activities
  • Separating out pentane plus and natural gasoline during natural gas processing
  • Separating out ethane during natural gas processing
  • Separating out propane during natural gas processing
  • Separating out butane during natural gas processing
  • Separating out isobutane during natural gas processing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of natural gas
  • US oil and gas production index
  • Regulation for the Petrochemical Manufacturing industry
  • Trade-weighted index
  • Demand from fuel dealers
  • Industrial production index

  • Current Performance
    Extraction processNatural gas boom and price bustExport growth and industry expansion
  • Chart: Revenue Growth

  • Industry Outlook
    Downstream demandTrade, participation and infrastructure
  • Table: Natural Gas Liquid Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Natural Gas Liquid Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Oil Drilling & Gas Extraction
  • Manufacturing
  • Petroleum Refining
  • Petrochemical Manufacturing
  • Plastic & Resin Manufacturing

  • Key Selling Industries
  • Gas Pipeline Transportation
  • Gasoline & Petroleum Wholesaling
  • Oil & Gas Pipeline Construction
  • Oil Drilling & Gas Extraction

  • Products & Services
  • Propane
  • Ethane
  • Pentane plus and natural gasoline
  • Butane
  • Isobutane
  • Chart: Natural Gas Liquid Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Other manufacturers
  • Petrochemical manufacturers
  • Consumers
  • Chart: Major Market Segmentation for the Natural Gas Liquid Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitDepreciationPurchasesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Natural Gas Liquid Processing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Natural Gas Liquid Processing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Natural Gas Liquid Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Natural Gas Liquid Processing Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Exports (2007-2021)
  • Imports (2007-2021)
  • Wages (2007-2021)
  • Production of Natural Gas Liquids (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dry Gas
  • Pure natural gas, require minimal processing.
  • Fractionation
  • Process where NGL mixtures separated into distinct NGL products, such as propane, butane and ethane.
  • Hydrocarbon
  • An organic compound composed entirely of hydrogen and carbon atoms. Natural gas liquids are hydrocarbons.
  • Natural Gas Liquids (Ngls)
  • Natural gas liquids are hydrocarbons extracted from raw natural during processing.
  • Wet Gas
  • Gas extracted from shale formation, comprised of natural gas mixed with ethane, butane and other NGLs. Wet gas requires processing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Natural Gas Liquid Processing Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Natural Gas Liquid Processing industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Natural Gas Liquid Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Natural Gas Liquid Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Natural Gas Liquid Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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