(October 2, 2014 – Reuters) In emerging Houston crude oil hub, an enterprising king arises (By: Catherine Ngai and Kristen Hays)
(Reuters) - The buzzing Texas Gulf Coast crude market, heralded as the oil trading hub of the future as the shale boom turns U.S. oil flows upside down, has found its first king.
Read the full story here: http://www.reuters.com/article/2014/10/02/us-oil-storage-enterprise-prodt-idUSKCN0HR16420141002?feedType=RSS&feedName=GCA-Commodities&utm_source=dlvr.it&utm_medium=twitter&dlvrit=1391616
CONDENSATE AND EVERYTHING
For the moment, with exports of unprocessed crude oil still off limits, the deal may most immediately benefit Enterprise's growing exports of processed condensate, a very light form of crude increasingly showing up in major U.S. oilfields, including the Eagle Ford shale and Permian Basin in Texas.
Earlier this year, the U.S. Department of Commerce gave Enterprise and producer Pioneer Natural Resources approval to export condensate that had been minimally processed, opening the door to partial shipments.
Oiltanking's marine terminals with 12 docks will give Enterprise more opportunity to ship out those exports, as its Morgan's Point dock on the ship channel is now largely dedicated to ethane exports, Teague of Enterprise told analysts.
All this builds on Enterprise's longstanding dominance in natural gas liquids, including the vast Mont Belvieu facility - another product that is being exported in record volumes.
"All the pieces are coming their way," said Sandy Fielden, an analyst with consultancy RBN Energy.
