What is Crude Oil? What is Condensate?
The energy industry has avoided hard definitions for Crude Oil versus Condensate. One of the more confusing parts of the energy industry is why there are different names for the same thing – a barrel of gooey black stuff is all crude oil – RIGHT?!?
Well … not exactly
Composition of Crude Oil and Condensate
Crude Oil and Condensate are mixtures of hydrocarbons that contain various components. Depending on the extraction technique, geographic location, reservoir, and numerous other factors the components of a barrel of crude oil or condensate can contain any combination of asphalt, petro-chemical feedstocks, heavy fuel oil, jet fuel, diesel, automotive gasoline, lubricants, waxes, and hydrocarbon gas liquids.
One of the key factors in the industry in understanding the difference between crude oil and condensate is the quantity of hydrocarbon gas liquids (HGL) in a barrel of crude oil. If a barrel has more HGL, then the barrel is considered “light” or high gravity.
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GRAVITY
The American Petroleum Institute (API) is the largest US trade association for oil and natural gas. According to the API, the following classifications exist for light, medium, heavy
Type of Crude Oil
|
API Gravity
|
|---|---|
Heavy
|
Below 22.3 Degrees
|
Medium
|
22.3 to 31.1 Degrees
|
Light
|
Above 31.1 Degrees
|
Um – ok – so what about Crude Oil versus Condensate?
Let’s start with the API of West Texas Intermediate Crude which is considered the benchmark quality standard for the United States. West Texas Intermediate Crude (WTI) is 39.6 degrees. Often the industry participants round this off to 40 degrees for simplicity.
Generally, the higher the gravity then there are more hydrocarbon gas liquids (HGLs) in the barrel. There isn’t a hard cutoff on gravity to determine whether a barrel is crude oil or condensate. That said, generally it is safe to say any gravity above 50 degrees would be considered among all energy participants to be condensate. Barrels between 40 and 45 are considered light crude oil. Barrels that are between 45 degrees (WTI quality) and 50 degrees – this has historically been the area where most industry participants debate whether to call the barrel crude oil or condensate.
API Gravity
|
Industry Classification
|
|---|---|
Below 30 Degrees
|
Heavy Crude Oil
|
30 - 40 Degrees
|
Crude Oil
|
40-45 Degrees
|
Light Crude Oil
|
45-50 Degrees
|
Crude Oil OR Condensate
|
50 Degrees or Above
|
Condensate
|
Summary: What Gravity is Condensate?
According to the API definition, a West Texas Intermediate Barrel (the benchmark quality utilized for the NYMEX and ICE financial contracts) is a “light” barrel. About 4-5 degrees higher, and you get into the “fuzzy” definition of Crude Oil or Condensate.
But the industry seems very consistent that any barrel lighter than 50 degrees is classified as Condensate. So, to make it clear as mud:
- 40 Degrees or Less: Crude Oil
- 40 to 45 Degrees: Light Crude Oil
- 45 to 50 Degrees: Some call it Crude and others call it Condensate
- 50 Degrees or More: Condensate
Hopefully, this helps to understand all of these CIA’s (crazy industry acronyms) 🙂
Have a great day!
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