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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
Crude Oil Shipments In The Persian Gulf
Photographer: Ali Mohammadi/Bloomberg
Updated on

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.