U. S. industry targets record highs after recent severe downturn

This paper reports that the U.S. gas-processing industry is nearing production, total supply, and demand records. These trends make gas processing one of the few bright spots in the petroleum industry and are especially welcome after the severe conditions of 1986-89. Barring unforeseen industry upheavals, the current year promises a continuation of moderate production increases, stable demand in most major markets, and reasonable product values. A review of current trends, both inside and outside the industry, and an attempt to assess the immediate future, may help prevent the current sense of stability from becoming complacency. Although not broken out in the graphs, other significant milestones in 1991 include the following: Gas-plant ethane production totalled 193 million bbl, the highest in history. This total represents an increase of 33% since 1981 and makes ethane the principal gas-plant product today. Gas-plant propane production totalled 177 million bbl. Supplemented by 153 million bbl of refinery production and 31 million bbl of imports, both domestic production and total supply of propane in 1991 were the second highest in history. Including refinery production, total domestic gas-liquids production in 1991 was 785 million bbl, an all-time high.