CONDENSATE vs Crude Supply?

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par_putt
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Joined: Tue Apr 27, 2010 11:51 am

CONDENSATE vs Crude Supply?

Post by par_putt »

FROM BASIN ON THE IVBOARD
Msg 207555 of 207571 at 6/13/2019 12:15:13 PM by

Basin


Condensate notes
Note: In order to track/summarize contributions to a given board topic, I often create notes for myself. Below, FWIW, are my notes to myself regarding the great condensate debate, as condensates now appear to impact crude supply measurement.
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In the field, some gas condenses into liquids (lease condensate) and some liquid bubbles out into gas. Leases do what they can to separate liquids from the gas for royalty/payments purposes. Note: Lease condensate = virtually the same as plant condensate, but a few percent heavier hydrocarbon in lease condensate.

At the gas plant, additional liquids condensate out of the gas stream. Previously, this condensate was shipped to VZ as a product — diluent. In other words, plant condensate is not considered as crude (an input), but as a product because it is (or was) considered to be a product “manufactured” at/by a NG treatment facility.

Instead of heading to VZ as a product, the NG plant’s condensate is now injected into the crude stream, where its volume is later captured/counted as an Adjustment to Crude Supplies via the EIA’s storage surveys.

The net result is that, as Merriam hinted, part of what was (already counted) in the gas stream leaks over into and is (re)counted as part of crude supply, and, to the degree that is is mixed/diluted into heavy crude and not exported as a diluent, it causes crude stockpiles to increase.
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