Tuesday, September 29, 2020
Hawai'i Free Press

Current Articles | Archives

Wednesday, March 5, 2014
The Jones Act Strikes Oil
By Grassroot Institute @ 9:01 PM :: 2921 Views :: Jones Act

The Jones Act Strikes Oil

by Malia Blom, Grassroot Institute Mar 5, 2014

When a law has as broad a reach as the Jones Act does, you’re likely to run into it in some unlikely places. Just a few weeks ago, it was a barrier for New Jersey in getting the road salt it needed to keep highways safe during an unusually tough winter. Now, the oil industry is re-discovering Jones Act pain when it comes to the expense of bringing cheap Texas crude oil to East Coast refineries in the midst of what is otherwise a boom for oil production in America. Needless to say, concerned shipping companies claim the need for continued Jones Act protectionism, but at some point, the absurdities of the Act will become more than the economy can bear. As Reuters reports, we may not be seeing an end to the Act anytime soon, but the politics of energy policy are at least bringing more attention to the effect of the Jones Act on US oil:

EXPORTS, RAILROADS AND THE JONES ACT

Topping the list right now is a debate over the U.S. law barring crude exports to countries other than Canada, a ban imposed after the Arab oil embargo that many producers now argue is an unnecessary relic of a bygone era.

While no one is predicting a full-scale repeal any time soon, some believe that officials could use existing exemptions in the law to allow some oil to flow abroad. News this month that U.S. authorities had allowed some foreign crude to be re-exported to Europe sent a tremor through oil markets.

Traders at Connecticut-based commodity merchant Freepoint Commodities have talked about the possibility of oil exports.

….

East Coast refiners are stepping up age-old complaints about the Jones Act, a century-old law that forces all domestic freight to be carried on U.S.-flagged, -crewed and -built vessels. Surging Jones Act tanker rates make it too costly for many refiners to bring cheap Texas crude up the coast.

That could have major implications for companies like Kinder Morgan Energy Partners, which paid nearly $1 billion to buy a fleet of Jones Act tankers in December. Losing the Jones Act entirely would have a “material negative effect” on top inland barge operator Kirby Corp, the firm says in a quarterly securities filing; but it also says that it doesn’t expect the law to be eased “in the foreseeable future.”

Read the article in full here.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

ALEC

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT