You must have misunderstood my post. The quality, refinability, transportation costs, etc. have a greater impact on crude price disparities. I didn't suggest that the purpose was to change royalties on the basis of oil type.
Crude oil from different places has very different qualities. Not unlike different soils (sand, loam, clay) or different types of mushrooms (button, shitake, crimini, oyster, etc.)
In the early '80's I did some extensive research for the maritime industry, matching various types of crude on the world market to domestic refinery capabilities, and was surprised to learn that many refineries couldn't even refine certain crude at all, which would have to be transported thousands of miles to refineries that had the right capabilities... This dramatically affects the price. |
