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Texas shale could replace Iranian exports in Asian markets – Mr Fielden

Gasoil News - Published on Fri, 21 Sep 2018

Image Source: hdnux.com
Falling Iranian oil exports from US sanctions open the door for US 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 Mr 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 US condensate production comes from Texas, especially South Texas’ Eagle Ford shale and West Texas’ booming Permian Basin.

Mr Fielden argued “Regardless of how much Iranian condensate remains available for export, the current tight conditions represent an opportunity for US producers to gain valuable market share.”

In addition to the sanctions, Iran also is consuming more of its condensate domestically.

However, he said that US producer must act fast because there’s rising competition from new Australian liquefied natural gas projects that also produce some condensate.

He said that “Time is of the essence for U.S. producers to grab this opportunity, since several competing suppliers are knocking at the same door.”

China, Japan and South Korea all desire large volumes of condensate to use as petrochemical feedstock.

Source :

Posted By : Nanda Koijam on Fri, 21 Sep 2018
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