Development of shale gas and oil resources in the United States has resulted in significant byproduct production of natural gas liquids, which has reversed the declining trend in US NGL production experienced at the turn of the century. A wide gap in natural gas and oil prices has supported the prices of natural gas liquids and has encouraged their recovery from wet natural gas. New production of NGLs in areas far from existing fields has prompted investment in NGL infrastructure. Increasing supplies of NGLs have also changed the dynamics of NGL demand patterns. U.S. petrochemical companies are taking advantage of the newly abundant supplies with capacity expansions and lighter feed slates.
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