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Released November 19, 2014 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--When natural gas and crude oil are extracted from underground wells, they can sometimes be accompanied by other, medium-density hydrocarbons. In conventional wells and plays, the amount of these hydrocarbons was minimal, and they were considered a marginal byproduct of oil and gas production. As such, they were not regulated thoroughly, with much of the volume being burnt off, along with natural gas at oil wellheads.
These medium-density hydrocarbons were loosely termed "condensate," and they were categorized based on what kind of well they were produced from: liquids-derived condensate, and gas-derived condensate. However, with the advent of hydraulic fracturing, or "fracking," more condensate is being produced than ever before, presenting some new challenges for producers and regulators alike.
Because condensate has been classified largely by the kind of well it comes out of, the exact definition of the term has never been nailed down. It also has led to other terms to describe these intermediate hydrocarbons--including "liquefied petroleum gas" (LPG) and "natural gas liquids" (NGLs), which describe light condensate produced at refineries and at gas wells, respectively. However, there is some flexibility regarding where they are produced or what they define.
When condensate was being produced as a byproduct of oil and gas production in plays, where it made up a very small proportion of the stream, precise definitions were not necessary. However, in two of the newer shale plays, the Eagle Ford and the Marcellus/Utica, condensate is making up a larger proportion of the oil and gas streams than has been previously encountered. So much so that pipeline projects in the Eagle Ford, such as the Double Eagle and Kinder Morgan Crude and Condensate (KMCC) pipelines by Kinder Morgan Energy Partners (NYSE:KMP) (Houston, Texas) have been, and are being, developed.
View Project Report - 300038995 300153194
These pipelines will transport condensate specifically, and they are differentiating between it and crude oil. This differentiation is significant because the line between light crude oil and condensate is somewhat fuzzy, and how to set a dividing line is the topic of much debate.
For related information, see November 17, 2014, article - Light Crude? Heavy Gas? What is 'Condensate'?
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
These medium-density hydrocarbons were loosely termed "condensate," and they were categorized based on what kind of well they were produced from: liquids-derived condensate, and gas-derived condensate. However, with the advent of hydraulic fracturing, or "fracking," more condensate is being produced than ever before, presenting some new challenges for producers and regulators alike.
Because condensate has been classified largely by the kind of well it comes out of, the exact definition of the term has never been nailed down. It also has led to other terms to describe these intermediate hydrocarbons--including "liquefied petroleum gas" (LPG) and "natural gas liquids" (NGLs), which describe light condensate produced at refineries and at gas wells, respectively. However, there is some flexibility regarding where they are produced or what they define.
When condensate was being produced as a byproduct of oil and gas production in plays, where it made up a very small proportion of the stream, precise definitions were not necessary. However, in two of the newer shale plays, the Eagle Ford and the Marcellus/Utica, condensate is making up a larger proportion of the oil and gas streams than has been previously encountered. So much so that pipeline projects in the Eagle Ford, such as the Double Eagle and Kinder Morgan Crude and Condensate (KMCC) pipelines by Kinder Morgan Energy Partners (NYSE:KMP) (Houston, Texas) have been, and are being, developed.
View Project Report - 300038995 300153194
These pipelines will transport condensate specifically, and they are differentiating between it and crude oil. This differentiation is significant because the line between light crude oil and condensate is somewhat fuzzy, and how to set a dividing line is the topic of much debate.
For related information, see November 17, 2014, article - Light Crude? Heavy Gas? What is 'Condensate'?
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
