How much Prudoe Bay oil is being shipped to other than USA Ports.
Just asking especially for California consumers at $6.40 for gas and $6.95 per gallon diesel.
My heart bleeds; try $11.40 for a gallon of petrol like over here.
$125 to fill a small family car now.
Probably shouldn’t have bought a V8 Jag.
Or a Landrover.
1 Like
Does it matter?? Crude Oil is a world commodity, sold on the world market at world market price.
If it originate from Alaska or PG doesn’t matter for the pump price of Gasoline.
Norway is a major exporter of Crude Oil and has the second highest price for Gasoline in the world (only beaten by Hong Kong)
NOK 27.4/Ltr. = USD 10.71/USGl.
UPDATE:
1 Like
It’s not a regular occurrence from what I’ve seen, more for inventory control in to avoid slow downs and the associated costs. Taking a US hull out of the trade for the longer voyage isn’t feasible and the cost to charter a foreign hull and take the oil overseas to compete with cheaper oil from elsewhere isn’t really profitable.
1 Like
If I remember correctly the oil in the Alaska pipeline and terminal in Valdez were to be used for USA domestic markets only. That is not the case today. It is also reported that some of the oil being pumped from the federal reserves because of the high prices here in the USA are being shipped to China. Sure makes you wonder WTF…
There is no shortage of crude oil in the US. Quite the opposite. We are a net exporter of Crude Oil.
It is important to know that not all grades of crude are the same, and refineries have preferences for some grades over others that aid their efficiency. This generates some US domestic crude being exported out of the US, while others are imported.
Also the lack of and cost of Jones Act transportation stops some US domestic crude from the US Gulf to go to US East Coast and US West Coast refineries. So those refineries import crude, while the domestic bbl is exported.
But net-net we are still a net exporter of crude oil - so every argument you hear about pipelines, or production or regulations is purely political BS.
2 Likes
No.
“The United States remained a net crude oil importer in 2021, importing about 6.11 million b/d of crude oil and exporting about 2.90 million b/d.”
This hasn’t flipped in the past six months.
most crude from prudoe bay goes to japan. this is high sulfur fuel that requires a lot of refining
we have a glut of oil in the lower 48, they are exporting it to other countries so that the price will remain high. its all smoke and mirrors. to keep the price high.
this is what happens when you put obama retreads back in the white house.
like albert einstein said the definition of a moron is some one that repeats the same mistake over and over again hoping for another result
2 Likes
The vast majority of Alaska North Slope Crude is sent to refineries in WA and CA. It’s certainly not mostly sent to Japan.
The latest figures I could find show that about 90% of ANSCO is used for domestic production and of the remainder that’s exported (which is a relatively recent thing) most of it goes to China.
1 Like
Not sure where you get your info from mines from Reuters
If what you say is true and they have supposedly open up the strategic oil reserve why are we paying 8 dollars a gallon for gasoline
The old excuse that the refineries are the problem doesn’t wash anymore
Ps. There was no shortage of baby formula either it went down to the Mexican border to feed non Americans
At this moment Russian tankers are sitting off the Bahamas mid ocean transfer of fuel to shuttle tankers
It’s all political bungling
I’ve either worked directly in or adjacent to the USWC oil trade for the majority of my maritime career. Anyone else whose done so would understand the basics of the ANSCO trade. Most is shipped to WA and CA.
Here’s the latest with what’s been going on up there (as of Dec 2021)
In 2021, only nine loads were exported, with China taking most (along with Singapore, S Korea and, yes, a bit to Japan). USWC refineries were still receiving ~90% of it.
Furthermore, the Strategic Petroleum Reserves are nowhere near Alaska. The vast majority is in Louisiana and Texas.
1 Like
Makes ZERO difference if the crude oil comes from Prudhoe Bay or Saudi Arabia it is sold to the highest bidder on the world market based on the quality of the crude. That’s a basic free market fact. The salesmen also known as commodity brokers buy, borrow, promise and store oil to make money. In some cases oil companies have their own commodity brokers that bet on the price of oil. BP being one of the big ones. One would think that would be considered trading on insider knowledge but they say they have a firewall which prevents their exploration and production parts from talking to the brokering parts. 
1 Like
No and no, it goes to the west coast with an occasional load going overseas and according to the SDS it is less than 5ppm.
thank you - you are 100 pct correct. My bad we were still a net petroleum exporter - but due to crude prices falling below break even for many producers in 2021 much US production was shut in, replaced by imports.
There is an interesting dynamic with fracking bbls. Historically there was a huge amount of fixed costs ( exploration, expensive development and production, expensive and difficult shut in - restart costs ) and comparatively small variable costs for US production - think offshore GOM for example. With fracking it is very different, the percentage of variable costs and the ease to shut in and re-start make it much more sensitive to crude pricing. In the former case - you are still going to produce and sell at almost any price as a contribution to costs. In the second case it is much more likely to halt production until prices move back up. This is what happened to US domestic production in 2021 due to low prices caused by worldwide demand destruction due to covid.
only unfavorable ground in the new ‘leases’, any new wells are most all prohibited from using a pipeline to move the crude, transportation bottlenecks, etc. etc. … if you haven’t realized high oil prices and more are being engineered by big govt. yet you need to read more.
As far as what’s produced in the US, that can change with the stroke of a pen just as it did in Dec, 2015.
by almost any measure, allowing crude exports, and the boom in fracking that followed is the single best economic event in the US in 50 years. Jobs, balance of trade, strength of the dollar. Fracking and exporting has been an economic boom.
1 Like
1 Like
Agree. Problem is that the ‘boom’ you hear now is the shock wave from gas prices, inflation, and the poor economic outlook. When those items return to where they were in 2015/16 then we see about trying to maximize oil company profits.
To be clear, it’s not the oil company’s (or ANY company’s) job to do anything except maximize return for shareholders. If you want them to do something that’s not in their economic interest (such as provide relief to the population), you have to change policy in a way to incentivize them to do so.
2 Likes