[Roughneck]

Originally Posted by GGG

https://www.reuters.com/markets/comm...ia-2024-01-10/

Here is one reference. Shipping prices are very high right now but to ship 2 million barrels from the Gulf to Asia is about $5 USD per barrel. Shipping from Hardisty to Texas on Enbridge is about 10 CAD
https://www.bnnbloomberg.ca/investin...w-competition/

The distance from Texas gulf to India by flight is about 14,000km. Hardisty to Texas about 3500kms

Shipping oil by ship is cheap.

Could expand on this for fun, to factor in some other costs.

~14,000nmi shipping route from the Gulf to India (not going through any canals, following the Cape Route, but it will end up being cheaper anyway), 15kn average speed, equates to a ~78 day round trip.

At 830,000bbl per day capacity, KXL's capacity could fill a tanker every 2.4 days. Assuming 25% of the fleet is in port for maintenance at any given time, you'd need 43 ships to ensure constant flow of oil from the Gulf to India the entire year, or ~$5.2B in capital costs to ship it that 14,000nmi (26,000km) route ($120M per VLCC).

KXL's projected cost in 2021 for 1900km was $8B.

So can confirm, shipping oil by ship is cheap.