Technological advances have greatly increased crude production as gasoline consumption is declining, resulting in lower demand for crude and lower wellhead prices for crude, reducing profits of crude producers.
Most crude produced in America is “light sweet,” which is easier to transport and refine and priced at a premium compared to “heavy” oil that is imported. If American light sweet crude was exported, it would draw an even higher price, increasing profits for the producers, refiners and distributors and the price of gasoline at the pump, costing the consumer more.
The Energy Policy and Conservation Act of 1975 prohibits the export of American-produced crude petroleum to other countries. The oil industry has not put forth any significant effort to export crude until now. The oil industry and their financiers are now working to repeal the EPCA.
I believe that a driving force behind the Tesoro-Savage plan at the Port of Vancouver is so they will be positioned to export American-produced crude. If they export crude, I’m sure they will want to increase terminal capacity, resulting in even more chances for accidents involving crude.
