The U.S. ethane market broke records in 2024--here's what's next
Ethane unleashed! How the U.S. crushed records in 2024 and what’s coming next
The U.S. ethane market roared to life in 2024, smashing records in production, consumption, and exports while cementing its role as a global petrochemical heavyweight. Here’s a tight, data-driven look at the year’s highlights and what lies ahead.
Production Hits New Peaks
U.S. ethane production jumped to 2.8 million barrels per day in 2024, up 7% from 2023. The Permian Basin--spanning Texas Inland and New Mexico—powered this surge, delivering 63% of the total with a 9% output boost. Meanwhile, the Appalachian region shocked with a 13% rise, hitting 327,000 barrels per day and claiming 12% of production. This regional one-two punch underscores the U.S.’s growing ethane muscle. Source: EIA.
Consumption Soars on Petrochemical Demand
Ethane consumption rose 8% to 2.3 million barrels per day, fueled by its starring role as a petrochemical feedstock. The U.S. Gulf Coast saw a solid 5% uptick, but the East Coast stole the show, nearly tripling to 103,000 barrels per day thanks to Shell’s new cracker in Monaca, Pennsylvania. New infrastructure is clearly rewriting regional demand maps. Source: EIA.
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Exports Reach Record Heights
Exports climbed to 492,000 barrels per day, a 21,000-barrel increase from 2023, continuing a steady upward trend since 2014 (with a brief 2020 hiccup). China gobbled up 46% of the haul, followed by Canada, India, and Norway. The U.S. is now a go-to supplier for the world’s ethane needs. Source: EIA.
Greenpeace Messed With the Bull, Got Both Horns, and Found Out
Price Rollercoaster
Ethane prices at Mont Belvieu averaged below 20 cents per gallon but spiked to 25 cents in December. This mirrored natural gas prices, which hit an annual average of $1.86/MMBtu and peaked at $2.66/MMBtu in December—the highest monthly mark since 2014. Volatility remains a key watch point for producers. Source: EIA.
New 2024 pipeline projects give 17.8 Bcf/d of additional gas transport capacity
What’s Next… 2026 Projections
The EIA forecasts production climbing to 3.0 million barrels per day by 2026, with consumption stabilizing at 2.3 million barrels per day. Exports could hit 630,000 barrels per day, balancing domestic strength with global demand. The U.S. looks poised for sustained dominance. Source: EIA.
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The Big Picture
The U.S. ethane market’s 2024 performance isn’t just a flex—it’s a sign of things to come. With production firepower, infrastructure wins, and export clout, the U.S. is shaping the global petrochemical game. Expect more growth, more influence, and maybe a few more records to fall.
Want the raw numbers? Dig into the EIA’s data for the full scoop.
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Thanks - very interesting