Wrap – Week Ended 6/27/14

All questions under the wrap will be fielded in the Subscriber Mailbag section of the Monday post. Have a great weekend. 

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5 Responses to “Wrap – Week Ended 6/27/14”

  1. 1
    zman Says:

    Does anyone see a news story on NFX this weekend? 

  2. 2
    crysball Says:

    From  a Bllomberg Article  issued  Friday:

    "Crude oil that has been processed through a distillation tower, resulting in petroleum products, is no longer crude and can be exported without a license, Jim Hock, a Commerce Department spokesman, said June 24 in a written statement. "

     and  from  the  same  article:

     About 500,000 barrels a day of crude is churned out from stabilizers and distillation towers daily, Stake said.

    Individual units can handle from 500 barrels a day to 50,000, said Nader Khaki, director of sales and engineering for SouthTex Treaters Inc. SouthTex has sold 500,000 barrels a day of total stabilizing capacity, including at least one unit to a producer in Colombia, Khaki said. 

  3. 3
    elduque Says:

    re NFX- probably this


  4. 4
    nrgyman Says:

    More on the 'light processing' ruling.  Heavier crudes need to be heated more to stabilize and distill, so they will incur extra processing costs that may make refining them more economical than the lighter processing method.  Lighter crudes will cost less to process (less heating involved) and it should be more economical to use the stablizer/distiller processing method than the full refiner treatment to create exportable product.  The article is not clear on where the crude grade line is for economical processing, except that condensate can be economical if lightly processed for export and heavy crudes are likely to go to refiners.  Lighter crudes (but heavier than condensate) may be able to bypass the refiners economically as well, though the article doesn't specify grades.  The suggestion is that more oil than just condensates will be able to bypass the refiners (and splitters) and be exported as product if it undergoes this light processing method.  



  5. 5
    zman Says:

    re 2 – 4 – thanks. 

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