Viewpoint: US butane production to rise in 2022

Viewpoint: US butane production to rise in 2022

Houston, 22 December (Argus) — US butane production is expected to continue rising through 2022 as crude and natural gas output rebounds to pre-Covid levels.

As restrictions ease and vaccination levels continue rising, producers anticipate weaker economic effects from new variants of the coronavirus, creating a more stable environment for producers to continue increasing output.

The US Energy Information Administration (EIA) anticipates a temporary slowdown in oil demand due to the new Covid-19 Omicron variant, but the variant is not expected to overturn the current recovery, according to the EIA's latest Short-Term Energy Outlook. The EIA estimates natural gas production will increase to 96Bcf/d in 2022, a 3pc increase over 2021.