Great news. And it only take from 1 to 3 months to deliver to refineries, with the most typical range of 60-90 days. It isnāt just about āreleasingā it, itās āgetting it somewhere.ā
So, relief for amphetamine traders, not so much for sticker shock at the gas pumps.
The global economy is in for a big old horrible shock.
Iām a bear. My pig crap awaits for my happiness.
Oman has oil fields, oil refineries, and a couple deep water ports on the Arabian Sea.
These infrastructure are cooperative with Kuwait.
The Straight of Hormuz had been a threat for at least 40 years.
WHY have the Saudis, UAE, Kuwait, Iraq n Oman NOT built a major pipeline southwest of the SoHormuz, through southern Saudi Arabia and Oman to the Oman oil ports on the Arabian Sea, n bypassing the SoHormuz?
ralph
IMEC is a āplannedā India -Middle East Corridor that traverses Oman n Saudi to Israel port, across the eastern Mediterranean to SE Europe Greece n Italy.
ChatGPT says:
"Saudi Arabia has a major cross-country oil pipeline that runs from its eastern oil fields to the Red Sea port of Yanbu.
The pipeline
Name: EastāWest Crude Oil Pipeline (Petroline)
Length: ~1,200 km (ā746 miles)
Route: From the Abqaiq oil processing complex across Saudi Arabia to Yanbu on the Red Sea.
Capacity: about 5 million barrels/day normally, with surge capability up to ~7 million barrels/day after upgrades.
FWIW
ralph
Did this pipeline not exist before two weeks ago? Was it not in use before two weeks ago?
If yes, then it would seem it is not the answer to the question, except for possible āsurgeā capacity which adds maybe 20% to an already inadequate solution.
IIRC, it was supplying about 1 mbd, but has a capacity of 7 mbd. So, +6 mbd.
DB2
Hereās some geography I thought was interesting.
{. āThe Gulf Cooperation Council (GCC) is a political and economic union of six Arab states bordering the Persian Gulf: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). Established in 1981, it promotes regional cooperation, security, and economic integration.ā }
And a map:
"Member States:
Saudi Arabia (KSA): The largest member by area and population.
United Arab Emirates (UAE): Known for economic hubs like Dubai and Abu Dhabi.
Qatar: A major global exporter of natural gas.
Kuwait: Possesses significant oil reserves.
Oman: Known for its traditional aesthetic and strategic location.
Bahrain: An island nation and financial hub."
The tip of the Musandam peninsula is an Oman exclave. Mountains give Oman n Iran strong points for control of the Straight of Hormuz.
Perhaps explains in part Omanās support for Iran. In addition, Oman has oil terminals on its Arabian sea coast, and benefits from Iran closing the Straight of Hormuz.
The GCC are not known for "cooperation ". The āaccordsā for cooperation between the GCC n Israel, being developed over the last couple decades are a hot pain point for the other Muslim nations.
China has spent much effort and treasure to develop the BnI in Iran, directly supporting the IRGC.
China canāt buy the GCC. But it can buy the IRGC.
In the current kerfuffle, China stands to lose the ROI on its Iranian BnI, and access to CHEAP, sanctioned oil from Iran that supports Chinese teapot refineries, as well as bigger refineries.
China is reportedly facing significant economic issues due to lack of cheap oil.
This YT summary explains:
IMEC , The India-Middle East Corridor, is a PLANNED route to bypass Iran n China BnI n Turkie.
China n Turkie aināt happy about it .
But, IMEC is āin the planning stagesā.
And
The Western end is Haifa IL, n then to Greece.
And from the Greek hub, on into Central Europe- Romania, Hungary, etc, breaking Russiaās oil stranglehold on that region.
Oh, and Western Europe.
India is being touted as the next āfactory to the worldā.
ralph
Thanks Ralph, a fascinatingly important piece of reporting.