Posted on 06/07/2008 10:40:56 AM PDT by Exton1
Gull Island oil sounds like a pipe dream. But if true, great!
Did you miss the part of my post that pointed out that it would take 12,000 tanker trucks to carry the volume carried by a single oil tanker?
But let's totally ignore that point.
Okay. Let's do the rest of your suggestion.
Now what?
Now, when the Japanese can no longer buy Alaskan oil that is easily transported to Japan via Pacific oil tankers, the Japanese then buy that oil from the sellers that are closer to the U.S. refineries in the Gulf that have their oil delivered in massive oil tankers.
You then have oil going to Japan at increased cost and, after the capital expenditure of a massive pipeline system or new refineries, you have oil reaching the U.S. market at greatly increased cost than what is is now.
All you have done is to greatly increase the transportation cost to both the Japanese market and to the U.S. market just so that you can brag that American oil pumped in Alaska is powering American cars driven in Florida.
Learn what something called "FUNGIBILITY" is.
Wikipedia has an entry.
http://seattletimes.nwsource.com/html/localnews/2002245699_export17m.html
It goes to the US last I heard...
Careful, there, you might end up reviving a decades old pseudoreligion and jumping on talk show host's couches...
Something has to be the driving force behind the inflation, and it appears oil is ideal to do so. Especially since through BLM regulation, executive order, carbon tax, green speckled earthworm, or somesuch, or some other scheme the government has the ability to throw myriad stumbling blocks in the way of development of even known resources.
The BLM is standing in the way of pipelines from coalbed methane (natural Gas wells) in Wyoming, where the line would have to cross BLM land to get to market, as on example.
I am not saying this is the case, here, but when I look at how this election has been orchestrated by the Socialists on both sides of the aisle, it seems anything ia possible. /tinfoil hat
Alaskan North Slope Oil does not go to Japan.
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
As for transportation costs, look at the distances:
It is 3,577 miles from Valdez, Alaska to Tokyo, Japan.
It is 1,274 miles from Valdez, Alaska to Anacortes, Washington. (largest Washington refineries)
It is 2,253 miles from Valdez, Alaska to El Segundo, California (major refinery near Los Angeles)
The largest importer of oil is also the closest customer for Alaskan Oil.
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
If that's the case, then the following quote in the article is a flat out lie and the entire discussion was a moot point.
"Americans will also be shocked to know that almost all Alaskan crude is shipped overseas (most to Japan) while America has to import most of its oil. "Possibly you have heard it stated that the Alaskan crude oil has such a high sulphur content that it cannot be refined by most oil refineries in the U.S. We are being told that this is the reason why the Alaskan oil is not helping to solve America's energy crisis."
However, the point still remains that oil is a fungible commodity, with every country sipping out of the same World oil cup. The determining factors of where best to ship oil are the cost effectiveness of transport to and refinery at Point A in regards to oil pumped at Point B.
This article is full of lies. The sulfur content is not that high and is compared in the California link.
BTTT
Gas is $2.02 in Mexico. At the border cities. The Americans are buying it at that price.
We should have gas at about $2.40 max a gallon.
Bookmark
Anchorage-based Petroleum News has an article in its July 13 edition about the oil potential of Gull Island and the allegations surrounding it. PN had a map made up of the area and interviewed the top USGS geologist for Alaskas North Slope and two geologists who sat the Gull Island No. 1 well in 1976 (geologist speak for monitoring and interpreting the geologic evidence from a well while it is being drilled).
Heres the link to the article in html (text): http://www.petroleumnews.com/pnads/690171677.shtml
Heres the pdf version that shows article AND a map (story starts on page 1, jumps to page 22, which shows the full-size map): http://www.petroleumnews.com/pdfarch/543591276.pdf#page=1
I contacted them and PN executive editor Kay Cashman is looking for more information on Gull Island kaycashman@petroleumnews.com. She said the newspaper is going to continue follow the subject.
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