Condensate export numbers hidden from view

New government data about crude exports includes information about the first-known U.S. exports of lightly treated condensate, but the real details are hidden from view.The amount of condensate that sailed away from Texas City, in July is found in the U.S. Energy Information Administration’s new report on the the nation’s petroleum supply, but it is folded into an existing category, probably unfinished “kerosene and light gas oils”According to the report, in July, the U.S. exported 400,000 barrels of those unfinished kerosene and light gas oils, which by definition reflect partially refined products and generally require further processing. Given that no unfinished light gas oil shipments were reported in the five previous months, it appears likely that all 400,000 barrels recorded for July were minimally processed condensate.At least one cargo of condensate sailed away in late July, following private Commerce Department rulings affirming that two Texas companies’ plans for distilling the ultra-light oil were sufficient to transform it into a refined product and qualify it for export. While refined petroleum products such as gasoline can be freely exported, it is generally illegal to sell raw U.S. crude overseas.Pioneer Natural Resources and Enterprise Products Partners, the two firms that secured those private rulings, have so far sold three cargoes to overseas buyers. Pioneer’s CEO told Reuters the company plans to double condensate exports to 50,000 barrels per day next year from roughly 20,000 to 25,000 now.Separately, an Enterprise executive recently told Platts that it already has exported four cargoes — each ranging from 300,000 to 600,000 barrels — of processed condensate.Other companies may be quietly exporting distilled condensate.

via Condensate export numbers hidden from view – Eagle Ford Fix.

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