Why do we sale Alaskan oil to Japan?

[episodic]

Anyone know if we get 40$ a barrel for the oil we sell?

 

[AFB]

sell != sale

 

[episodic]

Originally posted by: amdfanboy
sell != sale

fixed just tired . . .

 

[Chaotic42]

What would you do with it?

 

[CanOWorms]

not many people know this, but we ceded away 12% of Alaska to Japan after our surrender to the Japanese-Zimbabwe Coalition in WWI, so they get first dibs on Alaskan oil

 

[TheBDB]

Why wouldn't we get whatever the world price is for that type of oil.

 

[Balt]

I'd imagine it's because they are willing to pay more for it than we are.

 

[episodic]

Originally posted by: Chaotic42
What would you do with it?

I'm just curious why they buy oil from us rather than OPEC. I've seen several articles saying we sell it, but none detailing what we get for it.

In other words if we are selling oil cheaper than what we are paying for it, why don't we stop selling it and use it ourselves. . .

 

[AFB]

Originally posted by: Balt
I'd imagine it's because they are willing to pay more for it than we are.

So opening up more of Alaska wouldn't give us any more oil would it ?

 

[fredtam]

Any help?

90% of Japan's oil comes from the middle east. Thay most likely pay the same amount for oil from us. It just keeps Alaska's economy going and helps out Japan with supply since they are the third largest oil consumer.

 

[episodic]

Still does not show what they pay per barrell. . .

 

[Eli]

Originally posted by: episodic
Still does not show what they pay per barrell. . .

Uh... it's not like the price of oil per barrel is a secret or anything.

Why do you think different countries get different prices? 😕

It's sold to them at whatever the going market rate is, I'm sure.

 

[dartworth]

Did you know that the pipe for the Alaskan Pipeline was made in Japan?

 

[episodic]

Originally posted by: Eli

Originally posted by: episodic
Still does not show what they pay per barrell. . .

Uh... it's not like the price of oil per barrel is a secret or anything.

Why do you think different countries get different prices? 😕

It's sold to them at whatever the going market rate is, I'm sure.

I don't know, I was just curious why we ship it across the world rather than use it ourselves. . .

If the going market rate is 40 $ and if your logic is correct, then why ship it for 40$ across the ocean when we can use it here and not buy a barrel from across the ocean for 40$.

Kind of like selling your pentium 4 chip to someone in china for 100$ so you can buy the same one locally for 100$, it just don't make any sense. . ..

 

[fredtam]

Originally posted by: Eli

Originally posted by: episodic
Still does not show what they pay per barrell. . .

Uh... it's not like the price of oil per barrel is a secret or anything.

Why do you think different countries get different prices? 😕

It's sold to them at whatever the going market rate is, I'm sure.

Exactly. The only real difference being the cost of shipment.

 

[fredtam]

old but should give you some insight.

 

[episodic]

Originally posted by: fredtam

Originally posted by: Eli

Originally posted by: episodic
Still does not show what they pay per barrell. . .

Uh... it's not like the price of oil per barrel is a secret or anything.

Why do you think different countries get different prices? 😕

It's sold to them at whatever the going market rate is, I'm sure.

Exactly. The only real difference being the cost of shipment.

see my previous post . . . it still does not make sense

 

[fredtam]

Originally posted by: episodic

Originally posted by: fredtam

Originally posted by: Eli

Originally posted by: episodic
Still does not show what they pay per barrell. . .

Uh... it's not like the price of oil per barrel is a secret or anything.

Why do you think different countries get different prices? 😕

It's sold to them at whatever the going market rate is, I'm sure.

Exactly. The only real difference being the cost of shipment.

see my previous post . . . it still does not make sense

see my previous post...it makes since

The cost of oil is the cost of oil. Shipping is another matter. Yes the may get it cheaper but it is because of shipment cost. They may even get it cheaper from us than the middle east even though the base price is the same but our production is more limited.

 

[episodic]

Originally posted by: fredtam
old but should give you some insight.

that says there is a ban on it's export. obviously this must no longer be the case as we are exporting to japan. . .how can it be more to ship here than to halfway across the world?

 

[fredtam]

Originally posted by: episodic

Originally posted by: fredtam
old but should give you some insight.

that says there is a ban on it's export. obviously this must no longer be the case as we are exporting to japan. . .how can it be more to ship here than to halfway across the world?

Regulations.

 

[ElFenix]

jesus christ the ignorace of the oil industry in this thread could fill a supertanker.

a) the US is already at refining capacity. even if there was more oil we couldn't refine any more
b) oil is not oil. oil coming out of the ground in one place is not the same as coming out of another. there is a reason texas light sweet crude costs more per barrel than north sea stuff, it is because it refines into more expensive products.
c) refineries don't switch oil types easily. refineries are usually set up to process very specific oils, and don't switch easily. giant chemistry problem here.

so, the reason we sell alaskan crude to japan is because there aren't enough refineries here to process it.

 

[episodic]

Originally posted by: ElFenix
jesus christ the ignorace of the oil industry in this thread could fill a supertanker.

a) the US is already at refining capacity. even if there was more oil we couldn't refine any more
b) oil is not oil. oil coming out of the ground in one place is not the same as coming out of another. there is a reason texas light sweet crude costs more per barrel than north sea stuff, it is because it refines into more expensive products.
c) refineries don't switch oil types easily. refineries are usually set up to process very specific oils, and don't switch easily. giant chemistry problem here.

so, the reason we sell alaskan crude to japan is because there aren't enough refineries here to process it.

So with the price of fuel, would it not make more sense to simply open new refineries and keep it here?

 

[digitalsm]

Originally posted by: episodic

Originally posted by: ElFenix
jesus christ the ignorace of the oil industry in this thread could fill a supertanker.

a) the US is already at refining capacity. even if there was more oil we couldn't refine any more
b) oil is not oil. oil coming out of the ground in one place is not the same as coming out of another. there is a reason texas light sweet crude costs more per barrel than north sea stuff, it is because it refines into more expensive products.
c) refineries don't switch oil types easily. refineries are usually set up to process very specific oils, and don't switch easily. giant chemistry problem here.

so, the reason we sell alaskan crude to japan is because there aren't enough refineries here to process it.

So with the price of fuel, would it not make more sense to simply open new refineries and keep it here?

Thank the eco-nuts. Theres more red tape to build a new refinery, than there is to build an airport, or a nuclear power plant. The last refinery to be built was in 1976.

Right now the US refineries are operating at 96%, and cant keep up with crude imports. I dont think it really matters we are millions of barrels short per day/week/month, when we couldnt do a damn thing with it if we had it.

 

[TheBDB]

episodic - You are speaking as if there was one entity, this so called "we", that controls oil buying and refining in the US. We are talking about corporations here and not the US government. Just because it would make sense for the US to have a surplus of oil so the price would go down doesn't mean that's how it works in the real world. If an American oil company could sell oil to Japan for greater profit than it could make it into gas for the US believe me it would.

 

[fredtam]

Originally posted by: ElFenix
jesus christ the ignorace of the oil industry in this thread could fill a supertanker.

a) the US is already at refining capacity. even if there was more oil we couldn't refine any more
b) oil is not oil. oil coming out of the ground in one place is not the same as coming out of another. there is a reason texas light sweet crude costs more per barrel than north sea stuff, it is because it refines into more expensive products.
c) refineries don't switch oil types easily. refineries are usually set up to process very specific oils, and don't switch easily. giant chemistry problem here.

so, the reason we sell alaskan crude to japan is because there aren't enough refineries here to process it.

This is true but we have refineries capable of distilling north slope. After all we have been doing it for how many years? We ship to Japan for one reason. Overall profit. There was a reason the export ban was lifted and it isn't because the US can't refine the oil or that we are already at capacity. The profit margin is simply greater exporting it than keeping it here.