[expat_panama]

Huh, this is something that our ‘tin-foil’ colleges haven’t gotten around to yet. In the meantime the only factors I can think of are transportation costs and regional political expectations. Anyone else have ideas?

[Smokin' Joe]

Pipeline capacity has been a problem for Bakken producers from pretty early on in the play, and still has not been adequately addressed.

I'm not complaining, though, gasoline is a mite cheaper here than on the coast.

[Rockingham]

Much of the crude oil from the North Slope is exported to Japan and broadly affects the Asian market. The loss of a major nuclear facility in Japan and the improving Asian economies must inevitably cause an increased demand for North Slope crude oil. In addition, the alternative source of crude for Asia — the Mid East — is cast into doubt by the ongoing unrest in the Persian Gulf.

[SAJ]

The spread between WTI and Brent is historically wide, too. As thackney very accurately points out, once crude goes into Cushing, it loses some marginal utility because it cannot be easily put into the int'l mkt from there.

When you see them starting to truck Cushing crude to Tulsa and subsequently barge it to the Gulf, you'll know the spread(s) will be narrowing substantially in short order.

[thackney]

More info at:

Energy Price Volatility and Forecast Uncertainty
http://www.eia.doe.gov/emeu/steo/pub/uncertainty.html
March 8, 2011 Release

Note this specifically talks about WTI versus Brent and the recent change in pricing spread. The same is applicable for ANS crude. However ANS is a small market and not traded often as much of the oil is long term contracts to West Coast refinery.