Methodolgy for determining differential tanker rates for SPR oil movement in an energy emergency: Final report

Technical Report · Thu Sep 01 00:00:00 EDT 1988

OSTI ID:6648948

Jones Act ships must be used to move crude and petroleum products between US ports. However, if no suitable Jones Act tankers or barges are available, shippers may apply, on a case-by-case basis, for a wavier to use substantially cheaper foreign capacity instead. Case-by-case determination of these waivers creates a potential problem for an emergency drawdown of the Strategic Petroleum Reserve (SPR): potential buyers of crude would have to submit bids while facing considerable uncertainty about their ultimate costs of transporting the SPR oil. This report examines an alternative to the case-by-case waiver process, which we call a ''composite waiver procedure.'' The composite waiver procedure has two elements: a general waiver of the Jones Act requirement for moving SPR crude; and a rebate, equal to the price differential between foreign ships and Jones Act ships, to be paid to any buyer of SPR crude who uses US bottoms for transport. The composite waiver is designed to reduce the uncertainty surrounding transportation costs in the crude bidding process, and to keep Jones Act tankers price competitive so these vessels are not eliminated from use during an SPR emergency drawdown. 17 figs.

• Research Organization: Charles River Associates, Inc., Boston, MA (USA)
• DOE Contract Number: AC01-85IE10481
• OSTI ID: 6648948
• Report Number(s): DOE/IE/10481-T1; CRA-200.11; ON: DE89003538
• Resource Relation: Other Information: Portions of this document are illegible in microfiche products
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
MARITIME TRANSPORT
EMERGENCY PLANS
STRATEGIC PETROLEUM RESERVE
COMPILED DATA
COST
GOVERNMENT POLICIES
PETROLEUM PRODUCTS
PROGRESS REPORT
TANKER SHIPS
TRANSPORT REGULATIONS
DATA
DOCUMENT TYPES
INFORMATION
NUMERICAL DATA
REGULATIONS
RESERVES
RESOURCES
SHIPS
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021000* - Petroleum- Legislation & Regulations
022000 - Petroleum- Transport
Handling
& Storage
020100 - Petroleum- Reserves- (-1989)