Rice Univesrity Logo
    • FAQ
    • Deposit your work
    • Login
    View Item 
    •   Rice Scholarship Home
    • Faculty & Staff Research
    • Baker Institute for Public Policy
    • Center for Energy Studies
    • View Item
    •   Rice Scholarship Home
    • Faculty & Staff Research
    • Baker Institute for Public Policy
    • Center for Energy Studies
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Decomposing Crude Price Differentials: Domestic Shipping Constraints or the Crude Oil Export Ban?

    Thumbnail
    Name:
    WorkingPaper-CrudeOil-032417.pdf
    Size:
    878.3Kb
    Format:
    PDF
    Description:
    Working Paper
    View/Open
    Thumbnail
    Name:
    ExecutiveSummary-WorkingPaper- ...
    Size:
    40.16Kb
    Format:
    PDF
    Description:
    Executive Summary
    View/Open
    Author
    Agerton, Mark; Upton, Gregory B. Jr.
    Date
    2017
    Abstract
    Over the past five years the U.S. domestic crude benchmark, WTI, diverged considerably from its foreign counterpart, Brent. Some studies pointed to the crude oil export ban as the main culprit for this divergence, but pipeline capacity was also scarce during this time. To understand the drivers of domestic crude oil discounts, we decompose domestic price differentials for multiple crudes into the contributions of shipping and export constraints. We find that scarce pipeline capacity explains the majority of the deviation of mid-continent crude oil prices from their long-run relationship with Brent crude, while refining changes explain very little. This implies that the deleterious effects of the export ban may have been exaggerated.
    Citation
    Agerton, Mark and Upton, Gregory B. Jr.. "Decomposing Crude Price Differentials: Domestic Shipping Constraints or the Crude Oil Export Ban?." (2017) James A. Baker III Institute for Public Policy of Rice University: http://www.bakerinstitute.org/research/decomposing-crude-price-differentials/.
    Keyword
    crude oil prices; crude oil export ban; shale oil; crude oil pipelines; crude-by-rail; More... congestion pricing; oil refining Less...
    Type
    Working paper
    Publisher
    James A. Baker III Institute for Public Policy of Rice University
    Citable link to this page
    https://hdl.handle.net/1911/94069
    Link to related resources
    http://www.bakerinstitute.org/research/decomposing-crude-price-differentials/
    Metadata
    Show full item record
    Collections
    • Center for Energy Studies [410]

    Related items

    Showing items related by title, author, creator and subject.

    • Thumbnail

      A Growing Portion of China’s “Oil Products” Demand Growth Does Not Actually Come From Crude Oil 

      Collins, Gabriel (2017)
    • Thumbnail

      International Influences on the Link between U.S. Crude Oil and Natural Gas Prices 

      Hartley, Peter R.; Jaffe, Amy Myers; Medlock, Kenneth B. III (2007)
    • Thumbnail

      The Relationship between Crude Oil and Natural Gas Prices 

      Hartley, Peter R.; Medlock, Kenneth B. III; Rosthal, Jennifer (2007)

    Home | FAQ | Contact Us | Privacy Notice | Accessibility Statement
    Managed by the Digital Scholarship Services at Fondren Library, Rice University
    Physical Address: 6100 Main Street, Houston, Texas 77005
    Mailing Address: MS-44, P.O.BOX 1892, Houston, Texas 77251-1892
    Site Map

     

    Searching scope

    Browse

    Entire ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsTypeThis CollectionBy Issue DateAuthorsTitlesSubjectsType

    My Account

    Login

    Statistics

    View Usage Statistics

    Home | FAQ | Contact Us | Privacy Notice | Accessibility Statement
    Managed by the Digital Scholarship Services at Fondren Library, Rice University
    Physical Address: 6100 Main Street, Houston, Texas 77005
    Mailing Address: MS-44, P.O.BOX 1892, Houston, Texas 77251-1892
    Site Map