RE: Re - Oil / Condensates..........25 Jul 2020 13:12
Some oil and gas basins contain wet natural gas that can be split apart to unlock an extremely valuable substance called “condensates.”
You see, hydrocarbons “chain” together. The more carbon atoms in the chain, the more “liquid rich” it is. The more “liquids rich” it is, the more valuable it is.
These liquids are called condensates.
You know some of these condensates. Jet Fuel is a condensate. Condensates are the building blocks used to produce plastics, kerosene, and even jet fuel. Without condensates to act as a diluent, the transportation of the tar sands heavy oil via pipeline would be nonexistent. Condensates are also used in the ethanol blends you may use at your local gas station.
Condensates have API gravity ratings on the 45 – 75 scale. They are so useful and valuable to society that a barrel of condensates is worth more than the best oil coming out of the Bakken or Eagle Ford shales.
Condensates sell for a premium over the benchmark price you always see for crude oil. You could say condensates are the “King of Hydrocarbons.”
When I evaluate oil and gas companies for investment, I like to see lots of potential for condensate production.
https://katusaresearch.com/not-oil-created-equal-quick-guide-knowing-oil-investor/