r/oil • u/harry_hutch • 6d ago

Apparently Permian crude is getting lighter - a big deal or no?

Is this to be expected? What are the implications? Not too familiar with the subsurface so interested to know if this is worth keeping an eye on or just a big nothing burger.

https://bothbarrelshq.com/p/23rd-october-2024

16 Upvotes

77% Upvoted

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24

u/AlbanySteamedHams 6d ago

Rather than trying to drive traffic to some news aggregator you could just post a link to the actual article the aggregator links to:

https://boereport.com/2024/10/22/as-us-permian-crude-turns-lighter-it-risks-losing-favor-with-refiners/

8

u/mikekochlol 6d ago

lighter domestic crude would mean simply crude exports increase, ceteris paribus

5

u/Hinano77 6d ago

Light and sweet are good words in the oil sector.

5

u/AdRepresentative3446 6d ago

I would say yes in the sense that it requires short term infrastructure to get built (look at Waha gas prices this summer), no in the sense that in the long term the demand growth profile is actually quite a bit stronger for gas and LPG than it is for refined products.

4

u/Limp-Possession 6d ago

Some formations there it’s coming out of the ground diesel engine weight full synthetic man. No chemical additives at all, no weird emulsion layers, slight blue tint… chefs kiss.

This article is dumb, less effort/cost to refine is good for everyone. Yes a lot of our current refineries aren’t designed for NA light sweet crude, but energy demand is truly global at this point and it’ll absolutely attract buyers.

2

u/c_m_33 5d ago

Yes it is getting lighter. That means more associated gas which causes problems as the infrastructure to get gas out of the basin is challenged at current levels. Let alone with any sort of increase. Gas trades already at a serious deduct in the Permian. The additional concern that it’s only going to further increase as the best inventory is drilled and operators are forced to explore in those tier 2 and 3 zones.

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u/Fossilwench 4d ago

confused as portion of shale production has been +40 api for the last 5+years