Posted by RN on August 07, 2014 at 09:36:48 from (68.190.80.254):
In Reply to: Re: Price of gasoline posted by rustyfarmall on August 07, 2014 at 09:05:42:
Exporting oil? depends some on what oil and where it is coming from, where the nearest refiner and market is. the classic example is the Alaskan crude oil that was supposed to go to the Los Angeles refineries when the Alaskan pipeline was built to Southen Alaskan port area instead of to the Canadian refineries. Problem is when the pipeline was finished the city of Los Angeles politicians had blocked the building permits for the refineries to upgrade to meet newer pollution laws-SO, LA refineries can"t refine the oil now available at Alaskan port. shippers have a little problem- where to ship the oil? send it to Mexican refineries maybe? Mex refineries have their own source of oil from Mexican fields, won"t pay for the American crude oil at a profit. Take the distance to travel south to LA, draw a similar line to the east and there is the Japanese market refineries and South Korean market with strong currency and American bank accounts available, some of their own tankers that will pickup at end of pipeline and pay at pickup. The crude oil from Alaska is "Exported" to eastern countries, Mexican refined products are "Imported" to the Southern California markets. New Jersey refineries send some ultra low sulfur diesel to European markets- the tankers are shuttling back and forth between Rotterdam and New Jersey carrying European no lead gasoline base that they have a bit of surplus to US and taking back the ultra low sulfur diesel base that is used in many European power plants as required by recent emissions laws there. You now have some quantity of petro product "imported" to US and another product "exported". Some Canadian oil is sent from central provinces to midwest refineries in Minnesota - "Imported" while some New Jersey products go to Quebec- "Exported" Canadian Pipeline doesn"t get the east to west routing from central provinces to Eastern Canada for large amounts of product, great lakes tankers have the locks transport costs-- a New Jersey tanker has a relatively short trip to port of Quebec with load of fuel oil and some gasoline- so the product is "Exported" in eastern area sort of makes up for the "Import" in Midwest US--but the barrels of product figures show up plain as "Import", "Export" instead of "Swapped". RN
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