2. wells in the middle produce gas, NGLs, and condensate, and
3. wells to the northwest generate oil and condensate.
Eagle Ford producers drilled their wells looking for oil or gas. Condensate was an unexpected bonus – but it now makes up a huge amount of the hydrocarbons produced from the formation.
Forecasts predict that total Eagle Ford oil output will reach 500,000 to 800,000 barrels per day by 2020. Up to 40% of those barrels will be condensate.
Compare that to 2011, when condensate production from the formation averaged 130,000 barrels per day. It means condensate production from Eagle Ford will likely grow by 150% in less than a decade. And Eagle Ford is just one of a slew of shale basins being drilled and fracked in the United States to produce oil, natural gas, NGLs, and condensate.
It sounds great, right? Not only are shale basins producing the natural gas and crude oil expected, they are also churning out piles of condensate, a hydrocarbon mixture so light you could often pour it straight into your tractor. Condensate must be making US shale producers happy, right?
Stayed tuned – I’ll continue this tale next week. Again, while I’m in down in Texas I’ll be talking to shale producers and quizzing condensate marketers, and find out what is being done to monetize this unexpected bounty of light oil – and what the impact will be for Canadian shale producers, who are now making a killing on condensate.
In fact my research has uncovered where North America's richest, most valuable condensate is. And I know the junior producer with the most leverage in the play... a potentially huge win in the making. Continue reading here.