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To: thackney

Distance is really not that important in the crude shipping business.
You must consider that a year 2000 built 200 000 TDW VLCC procured from a Korean yard would have cost ~USD120M with a lead time of 1 year, whilst a similar Jones Act compliant ship from an American yard would cost ~USD300M with lead time of ~3 years. One of the main costs of tanker ownership/operation is capital amortisation, and you may readily see that the second option would substantially raise the dayrate/WS.
Further, an American crew would cost at least 4 to 5 times that of a Filipino crew with Japanese or Korean officers.


44 posted on 04/16/2008 9:18:41 AM PDT by punchamullah
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To: punchamullah

Fuel isn’t important?

Check out the links below, there really isn’t any question Alaska Crude oil is being sent to the US West Coast.

West Coast (PADD 5) Crude Oil Exports
http://tonto.eia.doe.gov/dnav/pet/hist/mcrexp52m.htm

Alaska Crude Oil Production
http://tonto.eia.doe.gov/dnav/pet/hist/mcrfpak2m.htm

US Crude Oil Exports by Destination
http://tonto.eia.doe.gov/dnav/pet/pet_move_expc_a_EPC0_EEX_mbblpd_a.htm

U.S. Crude Oil Exports to Japan
http://tonto.eia.doe.gov/dnav/pet/hist/mcrexja2a.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


46 posted on 04/16/2008 9:22:52 AM PDT by thackney (life is fragile, handle with prayer)
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