In a briefing about the deal involving the 142,000-dwt Polar Discovery(built 2003) Erik Nikolai Stavseth of Arctic Securities noted this is the first time the state has exported crude since 2004.
“Our understanding of the legislation is that crude produced in Alaska has to be moved on US-Flag fleet and we welcome a bigger trade flow from Alaska to Asia as it will effectively remove capacity from the US trade,” he continued, adding:
“Alaskan production is currently at approximately 510,000 barrels per day and, should all Alaskan crude move to Asia, this would require 14 vessel equivalents, which is far in excess of what the Jones Act market both has and could release.”
While
