Why is Strait of Hormuz the World's Most Important Oil Artery

The waterway separates Iran and Oman, linking the Gulf to the Gulf of Oman and Arabian Sea. The Strait is 21 miles (33 km) wide at its narrowest point, but the shipping lane is just two miles (three km) wide in either direction. The U.S. Energy Information Administration estimated that 18.5 million barrels per day (bpd) of seaborne oil passed through the waterway in 2016. That was about 30 percent of crude and other oil liquids traded by sea in 2016. About 17.2 million bpd of crude and condensates were estimated to have been shipped through the Strait in 2017 and about 17.4 million bpd in the first half of 2018, according to oil analytics firm Vortexa. With global oil consumption standing at about 100 million bpd, that means almost a fifth passes through the Strait.  Most crude exported from Saudi Arabia, Iran, the UAE, Kuwait and Iraq — all members of the Organization of the Petroleum Exporting Countries — is shipped through the waterway. During the 1980-1988 Iran-Iraq war, the two sides sought to disrupt each other’s oil exports in what was known as the Tanker War. The U.S. Fifth Fleet, based in Bahrain, is tasked with protecting the commercial ships in the area. 

 

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Worth noting Iran President Hassan Rouhani repeatedly threatened (June 2018, Dec 2018 and so on)  “if someday, the United States decides to block Iran’s oil [exports], no oil will be exported from the Persian Gulf.”  

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I'll be amazed if the world doesn't blow up soon... Meanwhile, oil prices have jumped
 

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A miscalculation wit oil sanctions: the war is possible..

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5 minutes ago, 50 shades of black said:

I'll be amazed if the world doesn't blow up soon... Meanwhile, oil prices have jumped
 

Sometimes, coronary blockages lead to bad things. In recent past, oil was the main reason for starting war ... Why would it be different now?

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Outside the Straight, it's a message that is even scarier. They say: "Do not think you can just bypass our blockade."

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Such a nice start of the week: Trade talks fall, markets drop, and oil prices are growing ... and the sound of the rattling of weapons ....

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2 hours ago, francoba said:

Worth noting Iran President Hassan Rouhani repeatedly threatened (June 2018, Dec 2018 and so on)  “if someday, the United States decides to block Iran’s oil [exports], no oil will be exported from the Persian Gulf.”  

Waiting and hoping Mr. Rouhani, please press the button.

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2 hours ago, 50 shades of black said:

Meanwhile, oil prices have jumped
 

Good man, got your priorities straight.

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2 hours ago, ThunderBlade said:

Sometimes, coronary blockages lead to bad things. In recent past, oil was the main reason for starting war ... Why would it be different now?

Maybe today's not so much about oil as about running anything that Obama (may the devil get his soul) set up, into the ground. More childish a person cannot get.

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During one of the wars between Egypt and Israel, the Israeli Army managed to push Egypt back to the West side of the Suez Canal.  A number of ships were sunk inside the canal, so that no one could transit.  It sat that way, blocked, for a considerable time, I recall year(s).  Eventually, some peace was restored and the wrecked and sunk ships were removed by salvage teams. 

Now, if the same scenario plays out in the Straights of Hormuz, what would be the Western response?  You cannot send in dive teams to salvage ships in a hot, fire zone.  I suspect the solution will be to construct pipelines from the terminals in the Persian Gulf overland to new loading points on the West side of the Arabian Peninsula, over in the Red Sea. The place that gets into trouble is Qatar, as they are not getting along with MbS.  As for the Iraqis, they would be charged a transit fee for the use of the new pipelines and loading terminals.  There is typically a solution out there, you may have to scramble for it, though. 

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1 hour ago, Jan van Eck said:

During one of the wars between Egypt and Israel, the Israeli Army managed to push Egypt back to the West side of the Suez Canal.  A number of ships were sunk inside the canal, so that no one could transit.  It sat that way, blocked, for a considerable time, I recall year(s).  Eventually, some peace was restored and the wrecked and sunk ships were removed by salvage teams. 

Now, if the same scenario plays out in the Straights of Hormuz, what would be the Western response?  You cannot send in dive teams to salvage ships in a hot, fire zone.  I suspect the solution will be to construct pipelines from the terminals in the Persian Gulf overland to new loading points on the West side of the Arabian Peninsula, over in the Red Sea. The place that gets into trouble is Qatar, as they are not getting along with MbS.  As for the Iraqis, they would be charged a transit fee for the use of the new pipelines and loading terminals.  There is typically a solution out there, you may have to scramble for it, though. 

image.png.cf9a09291b3b59d1d8b145e925949c53.png

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1 hour ago, Jan van Eck said:

During one of the wars between Egypt and Israel, the Israeli Army managed to push Egypt back to the West side of the Suez Canal.  A number of ships were sunk inside the canal, so that no one could transit.  It sat that way, blocked, for a considerable time, I recall year(s).  Eventually, some peace was restored and the wrecked and sunk ships were removed by salvage teams. 

Now, if the same scenario plays out in the Straights of Hormuz, what would be the Western response?  You cannot send in dive teams to salvage ships in a hot, fire zone.  I suspect the solution will be to construct pipelines from the terminals in the Persian Gulf overland to new loading points on the West side of the Arabian Peninsula, over in the Red Sea. The place that gets into trouble is Qatar, as they are not getting along with MbS.  As for the Iraqis, they would be charged a transit fee for the use of the new pipelines and loading terminals.  There is typically a solution out there, you may have to scramble for it, though. 

 

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On 5/13/2019 at 7:40 PM, ceo_energemsier said:

image.png.cf9a09291b3b59d1d8b145e925949c53.png

Didn't they get hit yesterday? No serious damage says Aramco. Can that be guaranteed for the future?

And than those tankers in the gulf. Small damage only, Iran already claiming black operations by USA.

Interesting time indeed.

Have fun.

 

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5 minutes ago, RuudinFrance said:

Didn't they get hit yesterday? No serious damage says Aramco. Can that be guaranteed for the future?

And than those tankers in the gulf. Small damage only, Iran already claiming black operations by USA.

Interesting time indeed.

Have fun.

 

Pumping stations got "droned"

Saudi Aramco to expand capacity of east-west pipeline by end-2018

State oil giant says expanded pipeline will produce 7 million bpd up from current level of 5m barrels
State oil giant says expanded pipeline will produce 7 million bpd up from current level of 5m barrels
 

 
 
 
 
 

Saudi Arabia oil stations attacked by drones

Saudi Aramco 'supply to clients have not been affected by the terrorist attacks'

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CEO, thanks for the background links.

 

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2 minutes ago, RuudinFrance said:

CEO, thanks for the background links.

 

🍾

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6 minutes ago, ceo_energemsier said:

🍾

Is that a bottle of goodies, or the old fashioned German WWII hand grenade?

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Just now, RuudinFrance said:

Is that a bottle of goodies, or the old fashioned German WWII hand grenade?

bottle of goodies!!!!

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On 5/13/2019 at 8:26 AM, rainman said:

The waterway separates Iran and Oman, linking the Gulf to the Gulf of Oman and Arabian Sea. The Strait is 21 miles (33 km) wide at its narrowest point, but the shipping lane is just two miles (three km) wide in either direction. The U.S. Energy Information Administration estimated that 18.5 million barrels per day (bpd) of seaborne oil passed through the waterway in 2016. That was about 30 percent of crude and other oil liquids traded by sea in 2016. About 17.2 million bpd of crude and condensates were estimated to have been shipped through the Strait in 2017 and about 17.4 million bpd in the first half of 2018, according to oil analytics firm Vortexa. With global oil consumption standing at about 100 million bpd, that means almost a fifth passes through the Strait.  Most crude exported from Saudi Arabia, Iran, the UAE, Kuwait and Iraq — all members of the Organization of the Petroleum Exporting Countries — is shipped through the waterway. During the 1980-1988 Iran-Iraq war, the two sides sought to disrupt each other’s oil exports in what was known as the Tanker War. The U.S. Fifth Fleet, based in Bahrain, is tasked with protecting the commercial ships in the area. 

 

image.png.e52c826c1d93679239f34a58d927c89c.png

I hope we are now billing OPEC since we no longer need their oil. The EU and others should take over, or maybe they can protect it by themselves?

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On 5/13/2019 at 8:40 AM, ThunderBlade said:

Sometimes, coronary blockages lead to bad things. In recent past, oil was the main reason for starting war ... Why would it be different now?

You don't hear much about the United States blocking Japanese oil imports before Pearl Harbor. That is something I would like to know a lot more about. Tom, and or someone else probably knows.

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On 5/13/2019 at 8:35 AM, 50 shades of black said:

I'll be amazed if the world doesn't blow up soon... Meanwhile, oil prices have jumped
 

Biblical prophecies may be panning out soon. 

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On 5/13/2019 at 8:49 AM, pinto said:

Such a nice start of the week: Trade talks fall, markets drop, and oil prices are growing ... and the sound of the rattling of weapons ....

Stock Market up the last two days. I say let's compete fiercely and find new sources other than China. This is a major priority. We have been letting ourselves be taken advantage of for decades. Even Senate Majority Leader for the Democrats, Chuck Schumer agrees.

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