Texas should profit from exports that replace Iranian oil

Fuel Fix:
Falling Iranian oil exports from U.S. sanctions open the door for U.S. oil and gas producers to fill a void in Asia for a niche oil market.

Texas shale is beginning to produce more ultra-light condensate oil and there's growing demand in Asia, said Sandy Fielden, director of oil and products research at Morningstar, in a new report this week. Iran has served as a major source for condensate in Asia.

Condensate is an ultra-light oil used for crude blending, petrochemical feedstock and more. About half of all U.S. condensate production comes from Texas, especially South Texas' Eagle Ford shale and West Texas' booming Permian Basin.

"Regardless of how much Iranian condensate remains available for export, the current tight conditions represent an opportunity for U.S. producers to gain valuable market share," Fielden argued.
...
There are other competitors who also want to fill the void.  What seems clear is that Iranian oil is not needed in the marketplace.

Comments

Popular posts from this blog

Should Republicans go ahead and add Supreme Court Justices to head off Democrats

29 % of companies say they are unlikely to keep insurance after Obamacare

Bin Laden's concern about Zarqawi's remains