Wednesday, June 04, 2014
Oil’s lesser-known cousin, condensate, is about to get its moment in the spotlight, according to Bentek Energy, a consulting firm.
The boom in domestic crude production is also churning out vast quantities of condensate, gas trapped in underground oil reservoirs that turns into a liquid on the surface. Condensate can be used in petrochemical production or blended with oil to improve its quality. Much of the oil produced in shale deposits across North Dakota and Texas qualifies as condensate, producers and analysts say.
Sometime between 2017 and 2019, condensate of supply will surpass demand. As unwanted supplies build up, it could push benchmark U.S. oil prices down to $80 a barrel, from about $103 a barrel today, Bentek said.
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