Hawaii Free Press: Lifting The Crude Export Ban Could Substantially Change The Jones Act Dynamics

29 Dec 2015: “The author of the piece reports advice from well respected ship brokers specializing in tanker trades — Poten & Partners (Poten) and Mallory Jones Lynch Flynn & Associates (MLFJ) – who indicate that over time there is likely to be an increase in international crude oil tanker business transporting U.S. crude oil exports from the U.S. and a decrease in domestic tanker business in the Jones Act market. They indicated the crude exports would be from the Texas Gulf Coast and the Louisiana Offshore Oil Port (LOOP). “In fact, Poten was quoted, ‘This [Jones Act] market did receive a boost from the coastwise transportation of crude oil in the past, but these movements, which already declined significantly in 2015, may disappear altogether.’ “Not everybody wins, however. Poten cited possible negatives looming for the US flag Jones Act tanker market. Its Jedi warriors/researchers wrote: ‘The lifting of the US crude oil export ban will probably be a net negative for the US Jones Act market. This market did receive a boost from the coastwise transportation of crude oil in the past, but these movements, which already declined significantly in 2015, may disappear altogether.'”