The Daily Sentinel
Natural gas liquids help keep local drilling afloat

Saturday, March 10, 2012

Ben MacFarlane, a senior natural gas liquids analyst for Bentek Energy, an energy market analytics company, said that while Piceance drilling activity has slowed, a fair amount of the remaining drilling would likely go away if not for natural gas liquids and their price advantage over natural gas.

“It’s squaring with the economics, with the numbers,” he said.

David Ludlam, executive director of the West Slope Colorado Oil and Gas Association, said pricing can vary depending on the day, but natural gas liquids typically can be worth about 85 to 90 percent of the value of oil, which is why companies are targeting them.

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