Bloomberg - Some U.S. Oil Is a Bit Too Dirty and Costly for an Asian Buyer

November 10, 2017 – Bloomberg Markets

Some U.S. Oil Is a Bit Too Dirty and Costly for an Asian Buyer

By: Ann Koh

Some condensate from U.S. shale fields is too dirty to justify the ultra-light oil’s price in Asia compared with the supply from the Middle East, according to a South Korean joint venture of French major Total SA…

…The supplies are getting tainted when pumped through pipelines on their way to storage, said Rusty Braziel, president of consultancy RBN Energy. These pipes are also used to transport heavy crude, meaning that contaminants discolor the “nice clean material” along the way, he said…

Read the full article here: https://www.bloomberg.com/news/articles/2017-11-10/some-u-s-oil-is-a-bit-too-dirty-and-costly-for-an-asian-buyer

…“Certainly, U.S. producers aren’t going to discount the material,’’ said RBN’s Braziel. “What’s going to happen is that U.S. producers are going to clean it out. They’re going to invest in pipelines and tankage and facilities to be able to bring the clean material that you’d like to see, rather than that dirty stuff you’re seeing so far.’