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
If I’m not mistaken, the only crude that was exported to Japan was the heavy bunker crude, a substance very difficult to refine into gasoline.