[QUOTE=pcdunham;152365]A lot of this is wrong.
Some refineries are configured for light oil, i.e. east coast and midwest north east. Gulf Coast refineries are generally configured for Saudi and Venezuelan Heavy. Shale is the reason Nigerian light imports to US have fallen to nearly zero. Shale oil competes roughly with North and West African crudes. http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbbl_m.htm
Countries don’t have higher standards than the US with the exception of maybe Europe. Either way, standards are mostly set on refined products rather than oil itself. There is plenty of demand for light oil like in Europe, etc.
Major oil companies do own tankers. I’m sure Exxon has some Jones Act tankers as does Kinder Morgan, other majors probably do too.
Refineries have seen expansions over past few years, some specifically to take advantage of lighter shale oil.
Point 4. Makes no sense. First, US taxpayers don’t subsidize US oil production. Second US oil trades at a discount to global prices because producers can’t export. The reason to export it to get a higher price that they can’t get domestically. Not exporting is hurting US producers by forcing them to sell at lower domestic prices.
The comparison to copper isn’t really valid. There’s no value add in blending crude grades the way someone manufactures a product from copper ore and has a profit margin. Heavy crude producers like Canada or Venezuela have to buy and blend condensate or super light oil as dilutent so their crudes can be processed at all by heavy crude configured refineries. They don’t gain any profit margin by doing this.
The US exports refined products and it is allowed on non-Jones Act tankers. The only reason oil exports are tied to the Jones Act is because Crude is moved from Gulf Coast to Eastern Seaboard and from Alaska to West Coast. US oil exports to Canada are allowed. Last year, a handful of foreign flagged tankers delivered crude from Canada to the Gulf Coast and from Gulf Coast to Canada because it’s cheaper to send crude between those 2 points than a US flagged Jones Act tanker from Gulf Coast to the Eastern Seaboard.
Merits of the Jones Act aside, I don’t think oil exports should be tied to it. The export ban was a result of the Arab oil embargo in the 1970’s long after the Jones Act existed.
I’m an oil and gas sector analyst. I cover and trade any publicly listed companies related to oil and gas, upstream, midstream and downstream. My brother is a mate on a subsea IMR vessel in GoM, in case anyone accuses me of having an interest in the Jones Act.[/QUOTE]
[QUOTE=c.captain;152675]sorry smoker…he did answer it appears way back which I missed but of course he wants the ban repealed.
you know I am beginning to think this pcdunham clown is the embodiment of John McCain. Selling out America to reward his handlers…vis. just a stooge!
destroy this Senator McCain…
I claim that the selling of a finite valuable resource without adding any value to it is nothing more than trading away wealth which only benefits the owners of the resource and not one single other person or group.
ok, refute that SIR![/QUOTE]
It’s funny how dumb you operational level people are.