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Stabilizer's avatar

OK Thom, get out your salt shaker. I'll give you a moment............OK, some oil details you never hear.

Oil is expensive to ship. It's common practice to do something like, though not necessarily exactly this, Company A in - let's say East Africa - sells X BBLS to Japan. It's a long trip, so they might call company B in Alaska and have them ship 3 tankers to Japan while company A ships three tankers to India on behalf of Company B.

A lot of oil is imported and exported around the world like this.

I have seen a contract change hands from Nigeria to Ghana to Ivory Coast to Paris to Houston before all the numbers work.

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