Competitiveness of Indonesian crude oil

Journal Article · Wed Jul 11 04:00:00 EDT 1984 · Energy Detente; (United States)

OSTI ID:6840294

On the surface Indonesia's main export crude oil, Minas, would appear uneconomic for US refiners. It has several apparent disadvantages when compared to many other crudes, including: (1) higher freight costs from Indonesia to US ports; (2) higher processing costs due to its special characteristics; and (3) official prices US $0.53 above those of Arabian Light and Mexican Isthmus. A graph shows that Minas, 34/sup 0/ API, currently generates an apparent negative margin of US $3.68 per barrel to West Coast refiners, and an even greater loss of US $3.72 per barrel to Gulf Coast refiners. The slight differential between the two margins reflects lower freight but higher processing costs and a slightly higher Gross Product Worth (GPW) on the West Coast. But the cons are in some circumstances outweigh the pros: secret, selective discounts provided by Pertamina, the Indonesian state oil company, to certain foreign buyers associated with oil production in Indonesia; freight costs vary beneath those calculated; and finally, significant volumes of Minas refined in the Caribbean are said to be getting lost in Europe, where marketing is more gainful. This issue presents the fuel price/tax series and the principal industrial fuel prices for July 1984 for countries of the Eastern Hemisphere.

• OSTI ID: 6840294
• Journal Information: Energy Detente; (United States), Journal Name: Energy Detente; (United States) Vol. 5:13; ISSN EDETD
• Country of Publication: United States
• Language: English and Spanish

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
ASIA
CARBONACEOUS MATERIALS
COAL
DATA
DEVELOPING COUNTRIES
ENERGY SOURCES
EXPORTS
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INDONESIA
INFORMATION
ISLANDS
MARKET
MATERIALS
NATURAL GAS
NORTH AMERICA
NUMERICAL DATA
PETROLEUM
PETROLEUM PRODUCTS
PRICES
STATISTICAL DATA
TAXES
USA