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Page added on May 16, 2019

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Surge of New Permian Basin Oil to Feed Global Supply

Production

Exports of the Permian Basin’s newest kind of oil are set to jump as production surges, exceeding the appetite of U.S. refiners.

Sales of the new grade, known as West Texas Light, began in September, as explorers sought to separate out increasingly lighter and less sulfurous crude bubbling up from wells in West Texas and New Mexico, so it wouldn’t lessen the quality of U.S. benchmark West Texas Intermediate. WTL supply has grown to over 500,000 barrels a day, a nearly four-fold rise from last year.

While some of that is staying close by, most will need to be exported. Even as ample shale barrels and tighter supplies of heavier crudes have encouraged U.S. refiners to process the lightest oil since 1990, that may reach a limit soon. But since many of the biggest refineries have invested billions of dollars in upgrades over the years and are set up to run the heaviest, dirtiest oil, there’s only a certain amount of light oil they can handle.

Growing Exports

Shipments of American oil to overseas buyers have been on an uptrend

Census Bureau

“I suspect that refineries that can blend to run lighter slates are likely already doing so to the best they can,” said Michael Tran, a commodity strategist at RBC Capital Markets LLC in New York. “Every incremental barrel produced in the U.S. should be earmarked for export,” unless it’s a heavy crude, Tran said.

Shipments overseas began in February and have neared 1.42 million barrels through this month. Most was sent to the Netherlands and the rest for Canada, while none has headed to Asia so far, according to U.S. Customs data and ship tracking data compiled by Bloomberg.

Renewed U.S.-led sanctions on Iran could provide an opportunity. Buyers of Iranian condensates such as South Korea, might consider WTL, Jonathan Aronson, analyst for Cornerstone Marcro LLC in New York.

Presently, some 1 million barrels of storage has been set aside in the Permian and Cushing, Oklahoma, to market WTL, according to people familiar with the matter. Some pipes are starting to accept it as a proper grade, the people said.

More Pipelines

Still, more pipeline capacity would be needed, which is expected to start coming online late this year and in 2020. “Pipelines from Midland and Cushing to the Gulf Coast are full right now. It’s a problem for any crude, including WTL,” Aronson said.

WTL is being marketed to Asian buyers for refining and petrochemical use, according to a report by analysts at Macquarie Capital (USA) Inc. Even with its higher content of light products such as naphtha, it would be globally marketable for at least three years. However, that could change later on because of rapidly growing natural gas liquids and condensates supply, both of which have similar yields.

That might be a boon for buyers, as WTL prices could drop, particularly in Asia, which has numerous other options for light, low-sulfur crudes. Currently, the grade is trading at $1 to $1.50 a barrel under WTI Midland, compared with a $2.50 discount last month, according to people familiar with the matter.

On the whole, WTL would be a great crude for a simple refinery to run and chemical plants would like it, whether in Asia or Europe, Cornerstone’s Aronson said.

bloomberg



106 Comments on "Surge of New Permian Basin Oil to Feed Global Supply"

  1. I AM THE MOB on Sat, 18th May 2019 7:07 pm 

    CLogg

    Plane to catch? HAHAHAH..Who are you kidding..If you had a plane to catch you wouldn’t be a nazi who spams a doomer board 24/7..

    You lie about everything, even dumbshit that like this..Typical right winger..A total fake with mental problems.

  2. Famlin on Sat, 18th May 2019 7:08 pm 

    Vertically drilled oil production is going down and all dependency is increasing on shale oil. And too only on Permian.

    Did Eagle Ford max out.

    https://www.eia.gov/petroleum/drilling/#tabs-summary-2

  3. Famlin on Sat, 18th May 2019 7:08 pm 

    After hitting a high of 12.3 million b/d, slowly the production has come down to 12.2 million and then 12.1 million.

    https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRFPUS2&f=W

    Whats going on?

  4. I AM THE MOB on Sat, 18th May 2019 7:13 pm 

    Most Americans say ‘Arabic numerals’ should not be taught in school

    https://www.independent.co.uk/news/arabic-numerals-survey-prejudice-bias-survey-research-civic-science-a8918256.html

    its happening

  5. Anonymouse on Sat, 18th May 2019 8:37 pm 

    Really, no shit? How will you be ‘flying’ today cloggedrectum?

    -Flying electric Robo car
    -jewish electric airliner
    -teleportation
    -Hoverboard (self-driving of course)

    Because I sure hope you are not considering using a FF powered jet cloggedAnus, not that you would, but, you never know with you. You seem to be, how shall I put this, somewhat of a two-faced lying shit when it comes to……pretty much everything.

    Anyhow, wherever it is you think you are going, dont hurry back or anything.

  6. Cloggie on Sat, 18th May 2019 11:10 pm 

    Will be flying B737, but not the Mad Max variety, thanks for asking, shoeshine boy.

  7. I AM THE MOB on Sun, 19th May 2019 5:20 am 

    Anonymouse

    Great comment! LOL

  8. Davy on Sun, 19th May 2019 5:44 am 

    “Most Americans say ‘Arabic numerals’ should not be taught in school”

    fake news MOBster

  9. Davy on Sun, 19th May 2019 5:47 am 

    “Anyhow, wherever it is you think you are going, dont hurry back or anything.”

    annoying millennial

    “Anonymouse Great comment! LOL”

    millennials swapping spit

  10. Davy on Sun, 19th May 2019 5:48 am 

    “Will be flying B737, but not the Mad Max variety, thanks for asking, shoeshine boy.”

    How horrible, you have to fly in an American plane. Seems you can’t get away from those horrible Americans.

  11. I AM THE MOB on Sun, 19th May 2019 6:27 am 

    Apple CEO Tim Cook to the class of 2019: ‘My generation has failed you’

    https://www.cnbc.com/2019/05/18/apple-ceo-tim-cook-tells-the-class-of-2019-my-generation-has-failed-you.html

  12. Davy on Sun, 19th May 2019 7:05 am 

    “Apple CEO Tim Cook to the class of 2019: ‘My generation has failed you”

    Yea, to a class that is a failure and with no future. Young people like the MOBster are an example of cultural and physical decline looks like. I bet the MOBster is fat and physically unfit. We know he is dumb as a box of rocks from his stupid comments. LMFAO

  13. Anonymouse on Sun, 19th May 2019 8:36 am 

    Yea, to a class that is a failure and with no future. Dumb people like the Exceptionalturd are an example of cultural and physical decline looks like. I bet the DAVYMOB is fat and physically unfit. We know he is dumb as a box of rocks from his stupid comments. LMFAO

    Looks like you didn’t take your crazy pills (again) and got things all jumbled up (again).

    I took the liberty of correcting your mistakes.

    You’re welcome prick face.

  14. Davy on Sun, 19th May 2019 8:57 am 

    I wish I could find one of annoy’s first comments back when he was a little bit more open about himself where he said he was struggling to be an engineer. I forget why. Was it money or IQ? It was likely both. The guy acts intelligent but never says anything. I am also trying to find the comment where Ape Man handed annoy his ass for being an obsessive Jew baiter. LMFAO. Not that it matters much. Annoy is irrelevant. His Canadian anti-American shit is over because his loser Canadian anti-American extremist friends are gone. Annoy is the last of the dumbshits. Now he hangs with juanpee brain and brain dead makato. The gang of fools.

  15. I AM THE MOB on Sun, 19th May 2019 9:16 am 

    The right wants to ban abortion so they can force woman to carry babies they don’t want..Then they will try to force them to carry babies with men they don’t want..That is the end game..

  16. I AM THE MOB on Sun, 19th May 2019 9:19 am 

    Abortion rate by state (2014) U.S. average: 19%

    https://en.m.wikipedia.org/wiki/Abortion_statistics_in_the_United_States

    NY abortion rate is 38% of all pregnancies..

    The more abortions the more immigrants we need to import!

    Goodbye whitey! Your reign of terror is coming to an end!

  17. Davy on Sun, 19th May 2019 9:53 am 

    Fake news MOBster, AH, butt breath, what percentage of abortions are white?

  18. Cloggie on Sun, 19th May 2019 10:58 am 

    How horrible, you have to fly in an American plane. Seems you can’t get away from those horrible Americans.

    Don’t read things into that sentence I didn’t say nor even suggested.

    Both Airbus and Boeing are, fine, competent aircraft manufacturers, I will fly blindly. Both are exponents of white competence, Chinese and other Asians can only dream about.

    As a matter of fact I spent a couple of days with a team of Boeing engineers last month. Although I’m in solid state physics and they in aerospace, we happen to use the same complicated software and Boeing approached us for information and experience exchange. It were a fruitful and pleasant and cordial few says, entirely in line with many previous collaborations with Americans, mostly for big Anglo companies in Germany.

    For me as a Hollander there are no people easier to relate to than Americans or British, easier than Germans or French, which is a direct consequence of cultural and religeous and imperial history. I arrogantly consider Holland as the true mother of Anglosphere (the English are excused to have a different opinion).

    Although it is true that I consider Europe way too good to be your colony (it would be more reasonable that you had stayed ours, as a matter of fact it would have been better for all involved), for a few more years we remain yours… until we don’t… after the break.

    But spare me your accustions of non-existing anti-Americanism on a pure individual level. The real disgust comes from the imposed ZOG-system…

    https://www.dailymail.co.uk/news/article-7045699/Grooming-gang-victim-reveals-raped-100-men-deaths-threats.html

    …that has no future whatsoever and needs to be crushed if whites are going to have a future at all.

    But as I have said many times before, I promote a continuation of the transatlantic relationship “after the break” and I would not do that if I saw Americans as enemies. The problem is not American “evilness”, but naivite. I know no better video clip that symbolizes the true nature of the relationship between European Americans and their tormenters (and by proxy ours) than this:

    https://youtu.be/IdKm5lBb2ek

    Until now you have failed to give them a good kick in the teeth. And the more you postpone that moment, the more we will be forced to do it for you and the more we will own you “after the break”.

    So, now at 18:00 Costa del Sol time I’m going to test the buffet.

  19. Davy on Sun, 19th May 2019 11:27 am 

    See juanpee brain, Cloggo can debate. He likes you for some reason so maybe try to learn something from him you low IQ South American illegal alien.

  20. Davy on Sun, 19th May 2019 11:28 am 

    “So, now at 18:00 Costa del Sol time I’m going to test the buffet.”

    Cloggo likes the pig trough where the white whales go to feast. LOL

  21. Davy on Sun, 19th May 2019 12:33 pm 

    Thanks for the link Cloggie.

    https://youtu.be/IdKm5lBb2ek

    Saved to my notes….

  22. JuanP on Sun, 19th May 2019 12:41 pm 

    juanpee posted this

    Davy on Sun, 19th May 2019 12:33 pm
    Thanks for the link Cloggie.
    https://youtu.be/IdKm5lBb2ek
    Saved to my notes….

  23. Davy on Sun, 19th May 2019 12:51 pm 

    I wish I could be a master-debater like you and JuanP are. Sometimes that makes me so upset I cry.

  24. Davy on Sun, 19th May 2019 12:57 pm 

    “European elections 2019: Political climate may boost Greens”
    https://tinyurl.com/y33wk384 BBC

    “In Bavaria the Greens are riding high. In state elections last year, they surged into second place with over 17% and they hope for a similar result in the EU elections. “The Conservative CSU Party in Bavaria, which has been in power for decades, was focusing on anti-European politics and anti-refugee feeling,” she said. “We realised people don’t want to be scared. They want political content. And what we focus on is, of course, strong policies on climate issues, on environmental protection, but also core values like pro-European humanity and solidarity with refugees.”

  25. JuanP on Sun, 19th May 2019 12:57 pm 

    juanpee trying to be cute.

    Davy on Sun, 19th May 2019 12:51 pm
    I wish I could be a master-debater like you and JuanP are. Sometimes that makes me so upset I cry.

  26. Davy on Sun, 19th May 2019 1:01 pm 

    STFU JuanP

    dumbass!

  27. JuanP on Sun, 19th May 2019 1:32 pm 

    Juanpee posting

    Davy on Sun, 19th May 2019 1:01 pm
    STFU JuanP
    dumbass!

  28. Antius on Sun, 19th May 2019 1:52 pm 

    “NY abortion rate is 38% of all pregnancies..

    The more abortions the more immigrants we need to import!”

    The solution is fewer abortions and more happy marriages. Not more turd-skins.

  29. Anonymouse on Sun, 19th May 2019 2:59 pm 

    You didn’t spend any fucking time with any “Boeing engineers” cloggenfraud you lying sack of shit. The only ‘collaboration’ you have had with amerikans, has been with demented Davy and his sock puppets on PO.com. That is about it. And I wouldnt exactly call that cordial, at least on the surface. You are as bad as delusional davy here with his bullshit stories.

    I’ll remind you how you spent last month cloggjude. You were here, posting non-stop Brexit spam and web-links, mostly from various jew-owned British Tabloids. You know, the same way you spent the last umpteen months, retard.

    So, whatever happened to flying EL AL electric, you stupid kike?

  30. Davy on Sun, 19th May 2019 3:05 pm 

    Annoy, why were you struggling to be an engineer? Did you ever graduate? Lol, from the looks of your comments you are angry about something. Has life screwed you annoy? Fuck nut!

  31. Davy on Sun, 19th May 2019 3:19 pm 

    Oops, sorry for losing my shit again everyone. I’m not sure why I get so upset all the time, and it’s not like anybody really cares what I think.

  32. Cloggie on Sun, 19th May 2019 3:21 pm 

    “You didn’t spend any fucking time with any “Boeing engineers” cloggenfraud you lying sack of shit.”

    And how would you want to know that, you planetary pestillence? Not that I give a damn about what you “think”. But your nihilistic presence here, consisting of nothing but sneers, can’t be ignored.

    “I’ll remind you how you spent last month cloggjude. You were here, posting non-stop Brexit spam and web-links, mostly from various jew-owned British Tabloids. ”

    I only post in the morning at breakfast and an incidental oneliner from my iPhone during lunchbreak. I challenge you to come up with an example of a lengthy post of mine during working hours CET 9:30-18:00.

    But I love the angry, if not desperate tone in your ramblings, because it enables me to read the bottom of your mind, or what passes as such. Because you fear that what I think and write will happen, namely North-America balkanizing along racial lines, actually WILL happen and that YOU will be back at square one, that is “Africa”. And that you will be forced to wipe your own ass again, an endeavour you have little faith in, for good reason.

    Keep ventilating your anger for everybody to see, mousy. You have weak cards. Your presence in too large numbers will be the fuse of the tinderbox that will explode in YOUR face.

  33. JuanP on Sun, 19th May 2019 3:38 pm 

    OOpps this is a juanpee posting

    Davy on Sun, 19th May 2019 3:19 pm
    Oops, sorry for losing my shit again everyone. I’m not sure why I get so upset all the time, and it’s not like anybody really cares what I think.

  34. Davy on Sun, 19th May 2019 3:48 pm 

    OK Juan, I’m sure everyone here has heard enough of our little quarrel. How’s about we either kiss and make up, or the both of us go play our childish games somewhere else.

    dumbass

  35. I AM THE MOB on Sun, 19th May 2019 4:09 pm 

    Annymouse

    You nailed it..Clogg is a total loser..Do you really think someone highly educated would be spamming links 24/7 from the daily mail and infowars?

    Oh well, Europe is on the brink of collapse and they are going to start running out of oil soon..And cloog countries whole economy is built on natural gas sales to Europe..And they are going to run out over the next decade (resource curse)..One way or another clogg is going to be far to busy with life issues over the next decade, for him to spam this site 24/7 with red herrings..

  36. JuanP on Sun, 19th May 2019 4:17 pm 

    You got yourself a deal Davy.

    shit-for-brains

  37. MODS on Sun, 19th May 2019 4:32 pm 

    JuanPal, you ignore Davy He will ignore you. This means no sock shit either.

  38. JuanPal on Sun, 19th May 2019 5:09 pm 

    Whatever you say, massa.

    dumbass

  39. More Davy Sock Puppetry on Sun, 19th May 2019 5:12 pm 

    MODS (Davy) on Sun, 19th May 2019 4:32 pm

  40. I AM THE MOB on Sun, 19th May 2019 6:52 pm 

    “Collapse” Of German Onshore Wind Is “Jeopardizing” German & EU Renewable Targets

    https://cleantechnica.com/2019/05/13/collapse-of-german-onshore-wind-is-jeopardizing-german-eu-renewable-targets/?fbclid=IwAR2IarBDNgZOmuCZS3tOSfIx5t3U4gYot9dgPB_Hkk_tbw5JrqlF6BdxS2A

    haha

    told you so cloggedanus

  41. Cloggie on Sun, 19th May 2019 11:38 pm 

    Symbolic for the demise of the American left. NWO icon Madonna performance during Eurovision finale ridiculed world-wide:

    https://www.dailymail.co.uk/debate/article-7047633/JAN-MOIR-Nul-points-Madonna-puffed-like-gran-bad-knee-Eurovision.html

    “JAN MOIR: Nul points! Madonna puffed like a gran with a bad knee on Eurovision”

    On Dutch television she was ridiculed immediately after her dismal “performance”.

  42. Cloggie on Sun, 19th May 2019 11:57 pm 

    Austrian-American globalist fool dropkicked:

    https://www.foxnews.com/entertainment/arnold-schwarzenegger-dropkicked-attack-south-africa

    Good! What was he thinking anyway, that you can enter this post-Apartheid hellhole without bodyarmor? Won’t be long until the anti-white genocide in SA will begin, terminating any insane Anglo-Zionist notion that it is a good idea to put blacks and whites in a single cage. Obviously Europe will come to their rescue and take them back, like we will do with Australian refugees of the future.

    Here we have another wannabee Terminator:

    https://www.spiegel.de/politik/ausland/donald-trump-droht-iran-via-twitter-indirekt-mit-der-vernichtung-a-1268221.html

    “… das offizielle Ende Irans”

    With the usual US arrogance, Trump is threatening with the annihilation of Iran, no less. Empty threat. The US would become the pariah of the world.

    The truth is that the US has never forgiven Iran from escaping from the empire and afterwards for playing a significant role in sabotaging US attempts to colonize Iraq and Syria. And now there is Yemen.

    I think the US are going to lose KSA as well.

  43. Cloggie on Mon, 20th May 2019 4:09 am 

    https://edition.cnn.com/2019/05/19/us/morehouse-robert-smith-student-loans-trnd/index.html

    “Morehouse College grads are surprised by a billionaire’s promise to pay off their student loans”

    The headline is deceptive, typical (((CNN))).

    If you read the article, the meat is “black billionaire volunteers to pay off BLACK student loans”.

    I like blacks, racist to the core, like everybody else on the planet (minus white globalist Anglos, thoroughly brainwashed by their jewish masters, who for a minute thought they could have it all), with racism defined as “natural preference for your own kind”, just like parents have a natural preference for their own kids.

    But the clock is ticking against white cosmopolitan globalist Anglos, with the EU, Russia and China, not to mention Islam and US white nationalists, gradually preparing themselves to “emancipate” themselves from exceptionalism and the Five Eyes, hopefully without violence, just like how the USSR died, but more likely with massive violence, since the the owners of the Five Eyes are still in the building and are unlikely to give up on their tax farm and Anglo foot soldiers that easy.

    Well then, let’s prepare ourselves for some major drama then.

  44. Davy on Mon, 20th May 2019 5:05 am 

    “Symbolic for the demise of the American left. NWO icon Madonna performance during Eurovision finale ridiculed world-wide:”

    She is Italian and French Canadian in decent cloggo. LOL I think she is a loser and so are events like Eurovision. Grow up cloggo

  45. Davy on Mon, 20th May 2019 5:10 am 

    “Austrian-American globalist fool dropkicked:”

    More stupidity from cloggo about a stupid person. Hollywood people are the lowest of lowlifes in this screwed up world. IMA, you are cutting down one of the few countries where a significant Dutch settlement should have made a difference but didn’t. I know you will blame it on the blacks. Can’t admit anything wrong with the whites.

  46. Davy on Mon, 20th May 2019 5:11 am 

    “But the clock is ticking against white cosmopolitan globalist Anglos, with the EU, Russia and China, not to mention Islam and US white nationalists, gradually preparing themselves to “emancipate” themselves from exceptionalism and the Five Eyes, hopefully without violence, just like how the USSR died, but more likely with massive violence, since the the owners of the Five Eyes are still in the building and are unlikely to give up on their tax farm and Anglo foot soldiers that easy.”

    Cloggo’s daily rant that is more like a prayer. What a fucking loser.

  47. Davy on Mon, 20th May 2019 5:44 am 

    “Google, Intel & Others Cut Ties With Huawei As Trade War Heats Up”
    https://tinyurl.com/y4sb6ted zero hedge

    “The Commerce Department officially blacklisted Huawei and dozens of its affiliates Friday afternoon, and one business day later, we’re starting to see some major Western companies severing their business ties with Huawei, a trend that could have seriously dire consequences for the Chinese telecoms giant. Alphabet has announced that it will cut off Huawei Mobile’s access to most of its Android operating system offerings, which could hurt sales of Huawei phones outside China. Intel, Qualcomm, Xilinx and Broadcom have all said they will stop selling chips to Huawei because of Trump’s executive order, according to Bloomberg.”

    “The extreme scenario of Huawei’s telecom network unit failing would set China back many years and might even be viewed as an act of war by China,” Koontz wrote. “Such a failure would have massive global telecom market implications.” But bringing a massive global Chinese firm to its knees is one way to demonstrate to Beijing, and the rest of the world, which ignored Washington’s warnings about Huawei, the true reach of American economic power. And it’s one way to put a timer on talks with Beijing, ensuring that the trade skirmish won’t drag on until the height of campaign season. American firms weren’t the only ones to act. In Europe, German chipmaker Infineon Technologies said it would suspend deliveries to Huawei, at least until it has had a chance to determine the significance of Washington’s executive order (though company sources later denied these reports and said shipments to Huawei would continue). Since hostilities with the US began, Huawei has been stockpiling components. It now has enough of a buffer supply to keep its business running without interruption for at least three months. Nikkei reported late last week that Huawei had reportedly asked suppliers to help it build up enough stockpiles to last it a year, but it’s unlikely that Huawei has accumulated enough buffer stock to last it anywhere near as long. If Washington refuses to back down, this three-month window might become the next critical deadline for the trade talks.”

  48. Cloggie on Mon, 20th May 2019 6:10 am 

    “Cloggo’s daily rant that is more like a prayer. What a fucking loser.”

    Mostly frustration and light on content. That’s empire dave for ya.

    He thought he could conquer ze wurld (for George Soros) just by shouting “racist” and “natzi” hard enuf, yet with every passing day he believes less and less in his not so grand “Grand Strategy”, which leaves our empire dave foaming at mouth, with mobster and anonymouse closing in on him.

    All we in Eurasia need to do is enjoy the Andalusian sun, Rioja and tapas and patiently wait for empire dave to let the reality of the new geopolitical situation sink in and let him make up his mind about who his real buddies are: “beautiful Amazonians taking back their continent making dave into the next indian” or continental Yuropeans.

    Success!

  49. I AM THE MOB on Mon, 20th May 2019 6:30 am 

    Rich white men rule America. How much longer will we tolerate that for?

    https://www.theguardian.com/commentisfree/2019/may/20/rich-white-men-rule-america-minority-rule

    Not for long, we just need more immigrants to create our new proliferate!

  50. Davy on Mon, 20th May 2019 6:34 am 

    “Mostly frustration and light on content. That’s empire dave for ya.”
    Got you triggered though cloggo. You pretty much are light on the content lately with your Eurovision hype.

    “He thought he could conquer ze wurld (for George Soros) just by shouting “racist” and “natzi” hard enuf, yet with every passing day he believes less and less in his not so grand “Grand Strategy”, which leaves our empire dave foaming at mouth, with mobster and anonymouse closing in on him.”
    GEEZE, spare me the lame stories. Show me where I support Sorros? LOL

    “All we in Eurasia need to do is enjoy the Andalusian sun, Rioja and tapas and patiently wait for empire dave to let the reality of the new geopolitical situation sink in and let him make up his mind about who his real buddies are: “beautiful Amazonians taking back their continent making dave into the next indian” or continental Yuropeans. Success!”
    Come on cloggo what a lame comment and I thought you better than juanpee and makto

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