Natural Gas Infrastructure Continues to Play Catch-Up

By Tyler Crowe and Aimee Duffy – Jun 7, 2013 at 12:29PM

OTC: CHKA.Q

Chesapeake Energy

We are leading the world in NGL production, but it's more than simply production that is keeping us there.

In the world of oil and gas, America stands out as the top producer of natural gas liquids (or NGLs, not to be confused with liquefied natural gas, or LNG). Today, the U.S. is responsible for over 25% of world production and produces more than double what the second place competitor, Saudi Arabia, does. Not only does the U.S. have a firm position in this game, but it is also the fastest growing player. In 2012, the U.S. increased its capacity to process natural gas by 20%, and even bigger growth is expected in the upcoming years.

Obviously, the increase in natural gas production has a part in this big growth, but Fool.com contributor Tyler Crowe sees one part of the picture that should get praise: infrastructure. In this video, he and fellow Fool Aimee Duffy discuss why the U.S. has been so successful at growing NGL production and how much more work needs to be done to keep the good times rolling.

Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow them both on Twitter @TMFDuffy and @TylerCroweFool, respectively.

The Motley Fool recommends Enterprise Products Partners and ONEOK Partners. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.