Question about oil...

[YankeeMagic]

I am hoping someone here can help me with this question abnout oil from Alaska. This past weekend we had a visit from my wifes very Liberal Grandparents. The of course rode me on the evil Republicans causing mass suffering worldwide. When the topic got to the price of gasoline, I quickly brought up that Democrat's and tree huggers should support us drilling in Anwar. I was quickly told to learn my history, because the oil drilled in Alaska goes to Japan because Reagan was a crook blah blah blah... So whats the real story about oil from Alaska? A co-worker told me that oil from Alaska was high in sulfer and that's why is it's sold over seas.. Any help to prepare me for the next vist would be greatly appreciated!

[stylin19a]

it used to be none, then 2005 by law, no more than 7% total can go to japan,s.korea,china.

not sure if it's still the same.

[MeanWestTexan]

1. Where was the Exxon Valdez going? Japan? Didn’t think so.

2. Where does the pipeline end? Japan? Didn’t think so.

3. Remember that oil is a commodity. That is, it’s pretty much the same, whereever (there are weight issues, but not germaine here) it comes from. Let’s pretend, for a moment, that all the Alaska oil went to Japan. Well, then Japan wouldn’t have to buy oil from elsewhere, such as the Middle East (where we get oil), thereby lowering the price for all.

It’s basic economics, but of course liberals don’t understand economics or they would not be liberals.

[Ouderkirk]

My in-law are d’RATS as well. They know not to say anything political while in my house. I don’t talk politics with them...ever.

[Redleg Duke]

Your Grandparents are suffering from an early form of derangement syndrome. They are unable to comprehend a universe where anything they perceive as wrong isn’t the fault of Republicans.

[avacado]

Here ya go:

Alaska Oil Exports

Summary

As a reaction to oil prices and supply concerns, several bills have been introduced during 2000 which would ban the export of crude oil produced on Alaska's North Slope. The export of the oil had been prohibited by the 1973 law facilitating the construction of the pipeline system now transporting oil to the ice-free, southern Alaska port of Valdez. Subsequently, concerns about adverse effects on energy security, supply and price were alleviated. In 1995, legislation was enacted permitting export. Relatively small amounts - never more than 7% - of Alaskan crude have been sold to Korea, Japan and China. Korea imports about half of this oil.

The Alaska crude export issue has become especially focused on the West Coast, where gasoline prices are significantly higher than in the rest of the nation. Concern exists that the exports - which might otherwise be destined for the regional market - are not fully replaced by imported crude during the current episode of short supply, and that may have contributed to the region's higher fuel prices.

Ownership of Alaskan oil is changing. BP Amoco and Arco are planning to merge, and as part of this transaction, Arco's one-third stake is being sold to Philip's. This may change the dynamics of the market for Alaskan crude and could lead to a change in sentiment at BP Amoco (reportedly the only exporter) about selling crude abroad.

This report will be updated as legislative developments evolve or as conditions in oil markets change.

http://www.ncseonline.org/nle/crsreports/natural/nrgen-25.cfm

[theDentist]

As I recall (and I may be wrong) the oil being sent overseas was so it could be refined in a factory that handled high concentrations of other chemicals (perhaps sulpher someone mentioned before). This was because none of the refineries in western half of lower 48 could handle it.
But again, I may be wrong.

[RightWhale]

This is pretty much BS every time it is mentioned, which seems to be several times a year.

[skipper18]

I get a little stuck on #3.

Oil, wherever it is pumped from, enters a global market place for bids, and competition.

Unless the US is going to nationalize oil, socialist style, wouldnt any new oil coming online from a US source simply reduce the world price by fractions? For every consuming nation on Earth?

I dont see how that really helps the price situation, or the ‘foreign dependence’ situation, unless, again, we nationalize/socialize.

Am I wrong here? Im wrong a lot.

[Neoliberalnot]

Total BS or stupidity because most Alaskan Oil goes to West Coast Refineries. Lies from the left are prevalent and getting worse with the promotion of Urkel Obama for president who also has oil money in his campaign pocket but said money originates from the his middle eastern oily brothers.

[Sgt_Schultze]

I posted this link into another thread. It's not about the destination of the oil but about the amount of oil we've been forbidden to recover.

[avacado]

UPDATE:

Abstract: As a reaction to oil price and supply concerns, questions about the export of crude oil produced on Alaska’s North Slope are often directed at Members of Congress. The export of this oil had been prohibited by the 1973 law allowing the construction of the pipeline system now transporting oil to the ice-free, southern Alaska port of Valdez. But following a period of depressed oil prices, legislation was enacted in 1995 permitting export. Relatively small amounts — never more than 7% — of Alaskan crude were sold to Korea, Japan, China, and some other countries. These exports stopped by 2000. Currently, no crude is exported from the West Coast.

http://www.ncseonline.org/NLE/CRS/abstract.cfm?NLEid=1651

[RightWhale]

That’s interesting but there are several refineries in Alaska that seem to be handling the stuff. Indeed, international jet freighters land here every day to refuel on product made from that bad stuff and even my Toyota runs okay on it.

[SENTINEL]

I live in Alaska, and work for the oil industry. I can tell you that about a third of the north slope oil is extracted by British Petroleum, which is a foreign owned corporation. Retards like your in-laws jump all over little facts like this as proof of evil "exporting". Most of BP's north slope take is sold right here in the Us at BP gas stations, as well as others. Some is exported, but it is held by state and federal law to a very small percentage, less than 8-10% I believe.

Send your job killing, nation destroying, stealing from the poor working family liberals to Alaska for a closer inspection some time. We hunt liberals here in between lawyer and bureaucrat seasons.... Unlike the life destroying stunts they pull, I am just joking, of course.

[Phlyer]

I recognize your problem in dealing with those who are not particularly interested in facts, but here goes . . .

Oil is a 'fungible' quantity. That means it can be moved from one place to another, and replaced with an equivalent quantity from another source with no loss in value. So, the situation is that there is or is not a barrel of oil sitting in Valdez. If there is, it doesn't matter if the Japanese buy that barrel and we use that money to purchase Venezuelan oil which is then shipped to refineries in Houston. Except that transporting Venezuelan oil to Houston is cheaper than transporting Alaskan oil to Houston, so the most efficient overall approach is to let the Japanese have Alaskan oil and Houston have Venezuelan oil.

The problem is that there aren't enough barrels of oil sitting in Valdez. World demand is increasing - primarily China and India - and the supply is not expanding to match. The oil is there, and it's readily reachable, but politicians have artificially constrained supply. The US has the greatest known petroleum reserves of any nation on earth, but we're prevented from using it by politicians.

So the question to ask your liberal (actually socialist - liberal is a noble political position but the term has been stolen by socialists) friends/relatives is: Why have politicians artificially limited the supply of American oil?

Answer: It's all about power. If politicians control a vital commodity like oil, then citizens lose freedom to make their own choices and government gains power. Ask your friends why they want a demonstrably failed economic system like government (socialist) control of all our decisions instead of allowing people freedom to make their own decisions.

The answer, if they are honest, is that the annointed don't think real people have the wisdom to make their own choices. Only government can choose wisely.

And that's the difference between Democrats and Republicans, in a nutshell. (Well, it would be except for the RINOs.)

[theDentist]

Hmph. OK

[thackney]

It never was that way. When first built the pipeline oil could not be exported; that was part of the deal to get the pipeline approved through congress. The ban against exporting Alaskan North Slope was lifted in 1996 yet 100% of Alaskan North Slope oil is kept in America. This has been the case for all but 4 years of the nearly 3 decades of Alaskan oil production. Between 1996-1999 5.5% of North Slope oil was exported to Asian countries. These exports were overwhelmingly supported by the US Congress and by the Clinton Administration to offset an oil glut in California at the time. In June 2000 Alaskan North Slope oil again ceased to be exported, and 100% of Alaskan North Slope production has stayed in America.

You can look at the export history from this area since the ban was lifted.

Exports, US West Coast including Alaska and Hawaii
http://tonto.eia.doe.gov/dnav/pet/hist/mcrexp51a.htm

Here you can see data from the California Energy Commission. They track the amount of oil brought into California from Alaska.

CALIFORNIA CRUDE OIL PRODUCTION AND IMPORTS
http://www.energy.ca.gov/2006publications/CEC-600-2006-006/CEC-600-2006-006.PDF

Here you can see from the Washington Government that 74% of the oil used in Washington State refineries comes from Alaska.

Washington State, Petroleum FAQs
http://qa.cted.wa.gov/portal/alias__CTED/lang__en/tabID__847/DesktopDefault.aspx

[Sgt_Schultze]

Try this http://video.google.com/videoplay?docid=3340274697167011147

[tophat9000]

You know if the "evil Republicans" controlled the price of oil, it's petty dam stupid of them to drive the price UP like crazy just before this election... you would think they driven it down

Conversely I would think it's in the left interest to have have the price going crazy right now

[thackney]

Where does the pipeline end? Japan? Didn’t think so.

That one doesn't help much. It ends in Valdez, Alaska where it is loaded on Tankers to be shipped elsewhere. Of course it is going to the closest market with the largest demand, the US West coast.