Overview

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

The Natural Gas Liquid Processing industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

REPORT SNAPSHOT

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

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

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    Industry Analysis & Industry Trends

    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...

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    Industry Report - Industry SWOT Analysis Chapter

    Over the 10 years to 2021, industry value added (IVA), a measure of the industry's contribution to the overall economy, is expected to fall an annualized 4.4%. By comparison, US GDP is forecast to grow an annualized 2.1% during the same period. Typically, an IVA growth rate that falls short of GDP growth is indicative of a declining industry, but the Natural Gas Liquid Processing industry is an exception to this rule. The industry experienced high volatility in the past five years due to spikes and falls in energy prices. These fluctuations, in turn, affected operators' revenue and profit margins, leading to a stunted IVA growth rate. Furthermore, production volumes grew rapidly. The..

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    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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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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
    Competitive Landscape
    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
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    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
    Jargon & Glossary
    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.
  • Why buy this report?

    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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