Link here to Reuters.com.
According to the company, Bakken is lighter and
sweeter than North American benchmarks such as Louisiana Light
Sweet , Alaska North Slope and Kern County .
It is also ligthter and less-sulphurous than international
rivals like Nigeria's Qua Iboe and North Sea Forties.
Bakken produces a far higher share of valuable light
products and far less residuum than other markers, without the
need for expensive conversion and upgrading.
When distilled, one barrel of Bakken will yield about 43
percent of products in the gasoline range, and more than 10
percent suitable for making jet fuel, as well as 43 percent in
the distillate zone, leaving almost no heavy residuum.
According to Continental, the distillation products from
Bakken were worth almost $131 per barrel compared with $127 for
WTI and just $120 for Forties, based on crude and products
prices on September 21.
Bakken's quality is also far more consistent than output
from Eagle Ford, the other big shale play. Bakken has a
consistent quality of 42 degrees API, where Eagle Ford
crude/condensate ranges widely from as little as 28 degrees to
as much as 63, and must be blended to achieve even quality.
I assume less refining, less CO2. But I could be wrong.
I was under the impression that the bakken oil was sold at the WTI rate due to the distance to transport. Is this correct? Could you explain further.
ReplyDeleteThis might be a good place to start:
Deletehttp://www.milliondollarwayblog.com/2012/09/bakken-selling-at-premium-to-wti-at.html
That post is tagged with three or four tags which will take you to multiple postings regarding the pricing of Bakken.