U.S Ability to Offset Iran Oil Losses Has Some Built-In Limits
- Eagle Ford has similar condensate, but output is much smaller
- America’s heavier grades scooped up by Gulf of Mexico refiners
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When the U.S. vowed to stop any sales of Iranian crude, Secretary of State Mike Pompeo trumpeted America’s ability to help offset supply losses. Maybe, but it would be a stretch.
Oil condensate from the Eagle Ford shale basin in Texas is similar, though a bit heavier than Iran’s light South Pars condensate. But the Eagle Ford produces only about 150,000 barrels a day of its product, compared with Iran’s daily output of 600,000 barrels in 2017.