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**phernikas** · 11-25-2011, 08:41 AM

Well, if you're not going to increase production, then the US won't benefit. It won't be hurt, however, as it still doesn't matter where you ship the oil.

You would be absolutely correct if:
1) We lived in a world without transportation cost
2) The infrastructure to transfer oil at a reasonable cost was in place to handle shifts in where oil is coming from, which it's not
3) Capacity was infinite

The reality of the world is it very much DOES matter where you ship the oil. Which is exactly why there is a large price spread between Brent and WTI.

11-25-2011, 08:41 AM	#28
phernikas Join Date Oct 2005 Posts 440 Senior Member	Well, if you're not going to increase production, then the US won't benefit. It won't be hurt, however, as it still doesn't matter where you ship the oil. You would be absolutely correct if: 1) We lived in a world without transportation cost 2) The infrastructure to transfer oil at a reasonable cost was in place to handle shifts in where oil is coming from, which it's not 3) Capacity was infinite The reality of the world is it very much DOES matter where you ship the oil. Which is exactly why there is a large price spread between Brent and WTI.
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