Flood warning: US crude entering global market.

摘要

Last week, the Commerce Dept.'s Bureau of Industry and Security (BIS) gave permission to Enterprise Products and Pioneer Natural Resources to export ultra-light lease condensate (API gravity of 50-55°API) from the Eagle Ford shale play starting in Aug. classifying this type of oil as "processed" once it is sent through a stabilizer during production to remove the very volatile light ends (propane, butane) contained within the condensate prior to shipment of the liquid via pipeline. Enterprise announced that it has already sold a 400K-bbl cargo of lease condensate to Japanese Mitsui Co., with loading expected to take place in early Aug. Given this decision and the fact that Enterprise has already sold a condensate cargo for shipment abroad, it is expected that a number of firms may look to utilize stabilizers as a processing step to skirt the US crude export ban and send liquids to foreign markets. On July 1, Ergon Inc. announced that it is investing in condensate stabilization capacity within the Appalachian Basin that houses the Marcellus and Utica shale plays. The company will bring 10K b/d of condensate stabilization capacity online at its Marietta, OH river terminal in 4Q of this year and another 10K b/d of stabilization capacity online in Newell, WV next year. Similarly, Quantum Energy Inc. also announced that it plans to build a network of stabilizers in the Bakken play in North Dakota in an effort to produce liquids "fit for export."