Western Railroad Discussion > First condensate export sale reported

Reuters has a story about the sale of US produced condensate (very lightly refined or unrefined crude meeting certain specific gravity marks) to Japanese trading house Mitsui. The oil should be loaded at the end of July, or beginning of August.

No word on where the product was mined, although Permian, Colorado, and the Bakken are good guesses. By mid-2015, observers expect exports of about 300,000 barrels out of a million barrels produced per day.

Good for the railroads, I'd say.


http://www.reuters.com/article/2014/07/02/us-usa-condensate-exports-exclusive-idUSKBN0F72AV20140702

Sounds great.

Also not much mention of the export port, do it at night so no one will notice.

Out

callum_out Wrote:
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> Also not much mention of the export port, do it at
> night so no one will notice.
>
> Out


Someone ALWAYS notices......!!!

The NY Times has a Reuters report tonight that the US Department of Commerce has a "hold" on additional letters allowing export of condensate. That move follows requests by Senators Ed Markey (D-MA) and Bob Menendez (D-NJ) seeking clarification of the department's understanding of the law.

The article mentions that a number of companies have sought copy-cat letters from the department, essentially asking the same question the same way, in the hope of getting the same answer. The article also says that some experts question whether the process of running condensate oil through a stabilizer meets the standards set forth in the law.


Subscription site, but should be available with a search, or directly from Reuters

http://www.nytimes.com/reuters/2014/07/28/business/28reuters-usa-crude-exports.html

The first condensate shipment has set sail, according to the Wall Street Journal. The shipping origination point was Texas City, TX. Goldman Sachs CalTex was the broker, Enterprise was the terminal operator.

Although it's likely this shipment came from the [Eagle Basin, thanks for the correction] fields by pipeline, future shipments could move by rail. This would be especially true if the Bakken oil players installed basic processing to pull the hydrogen sulfide along with propane and butane from their raw crude.



Edited 1 time(s). Last edit at 07/31/14 07:17 by Lackawanna484.

Lackawanna484 Wrote:
-------------------------------------------------------
> The first condensate shipment has set sail,
> according to the Wall Street Journal. The
> shipping origination point was Texas City, TX.
> Goldman Sachs CalTex was the broker, Enterprise
> was the terminal operator.

More than likely it originated in the Eagle Ford fields of South Texas, as better than half the production from that field is Condensate.