How the West Was Won

This past week, an oil leak originating from a pump station serving Alaska’s North Slope resulted in a shut-down of production of nearly 600,000 barrels per day. This amount, equaling nearly 10% of total United States output, can have a dramatic impact on the worldwide energy complex, particularly with crude oil prices trading just below three year highs. However, beyond the resulting energy price movements, the leak and subsequent shutdown should shift attention to the effects such events have on tanker markets. More specifically, in this case, it raises awareness of the fragile and morphing U.S. West Coast (USWC) market. Download here