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How oil travels around the world, in one map

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How oil travels around the world, in one map

Unread postby Graeme » Wed 08 May 2013, 19:06:40

How oil travels around the world, in one map

Here’s a neat map looking at how oil travels by sea around the globe — focusing on the key “choke points” where that oil supply is most vulnerable to attack:


Image

That map comes from this recent reporting project on U.S. energy security by nine student journalists at the Medill National Security Journalism Initiative. The Web site is really worth a look — the reporters explored all aspects of energy security, from presidential rhetoric on the subject to the oil markets themselves to a breakdown of U.S. military operations to stabilize the oil supply. And the site has plenty of charts and graphs.

To accompany the map above, Dana Ballout has a piece looking in more detail at all the potential oil choke points — particularly the Strait of Hormuz, where 17 million barrels of oil pass through each day, or one-fifth of the world’s supply. That includes this eye-opening figure:

Protecting oil tankers passing through the Strait of Hormuz, the narrow passage off the coast of Iran and the United Arab Emirates, is one of the critical missions of the Navy here. It is also expensive. By some estimates, the United States has spent as much as $8 trillion on maintaining such a menacing military presence in the region in recent decades, including aircraft carrier groups bristling with jet fighters, to make sure countries like Iran don’t choke off the world’s oil supply.


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Re: How oil travels around the world, in one map

Unread postby Keith_McClary » Thu 09 May 2013, 02:05:28

Now that Peak Oil is gone forever, USA will be energy independent and will not have to spend those trillion$. It will be like the post Cold War "Peace Dividend".
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Re: How oil travels around the world, in one map

Unread postby Pops » Thu 09 May 2013, 07:28:06

Cool map but I'm surprised they didn't show any pipelines, very hard to protect I'd think.

Another thing the neglected to plot was may wallet, one of the biggest choke points right now, lol
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Re: How oil travels around the world, in one map

Unread postby sparky » Thu 09 May 2013, 07:49:49

.
Good map , the wise will now understand how the U.S. Navy has its foot on China, Japan and Korea throats
all in a friendly sort of way but it's an eminently civilized protection racket
"pay up or else winter will be cold and factories idle "
and some people wonder what is the backing for the U.S. dollar....... the Navy !! that's what
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Re: How oil travels around the world, in one map

Unread postby ROCKMAN » Thu 09 May 2013, 09:08:13

Keith -the interesting about that map is that it does't depict the volume of current and future oil movement. Unless China intends on losing tens of $billions on the refinery JV's some of those flow arrows will change course. Like the 400,000 bops going from Saudi to that Red Sea refinery. And where will that big arrow pointing to the planned largest refinery on the continent tha China plans to build in South Africa. I also notice while they show an arrow from Venezuela to the US they don't show an arrow from Vz to China which has locked up 350,000+ bopd on LNG term contract as part of the with China building refineries designed specifically
for the Vz heavy.

The US energy independence crowd needs to remember that how much oil the world produces isn't as important as how much the US has access to. Between China's refinery JV's and increasing internal oil consumption by the explorers there may not be as much oil available to the US as they are assuming.
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Re: How oil travels around the world, in one map

Unread postby ROCKMAN » Thu 09 May 2013, 12:37:29

My map doesn't show Indonesia now. But if I recall correctly it showed arrows moving out of it. A bit outdated: Indonesia became a net hydrocarbon importer a while ago. It would be interesting to also see arrows highlighting the current and possible future flow of refined products. As I understand it the NE US gets a good bit of gasoline from EU refineries as well as the few remaining refineries up there getting North Sea crude.

And more speculation: there could be a potential product distribution arrow from British Columbia to China given the Bank of China’s plans to finance a huger refinery in BC to crack oil sands production and then pipeline the products to the coast where they can be shipped to anywhere on the planet. And more speculation run amuck but can’t be dismissed: a big product distribution arrow leading from the Texas coast to somewhere overseas. The huge Motiva refinery upgrade in Port Arthur will be getting greater access to more Canadian oil sand production soon. Motiva is foreign owned…the Dutch and Chinese. And under US law both that foreign sourced oil and its refined products can be shipped through the US and exported to another country. It’s already being done on a very small scale with such oil being shipped to China today. Hmm…a test run that’s also affirming precedence?

And notice those little arrows from the armpit of Africa on the west coast. That’s primarily oil from Nigeria and Equatorial Guinea. And recall the big refineries China plans to build in Nigeria. And recall the Angolan oil that China already owns in the ground. A short run to either Nigeria or S. African Chinese refineries being planned wouldn't be shocking IMHO. And notice the oil being shipped to Brazil. In spite of all that DW oil they’ve discovered Bz is still a net importer. And how much cheaper would it be to divert some of that ME oil heading to the US to those Bz refineries that China has committed to helping Bz build? And one more bit of wild ass speculation: the current govt of Mexico and well as the 3 major political parties have agreed in principle to take the refining monopoly away from PEMEX since they aren't doing a very good job. Mexico may be one of the bigger sources of US oil imports but they also have to import refined products from US refiners to fuel there economy. I bet Mexico wished they knew of someone with deep pockets that has an interest in building up Mexico's refinery infrastructure so they wouldn't have to keep giving back some of their of oil profits to US refineries. BTW: is everyone keeping up with the expansion plans of the Panama Canal that will allow supertankers to transit from the GOM (where Mexico produces much of their oil) to the Pacific Ocean?

Again, no one of these possible situations is a game changer IMHO. But when you begin to add them all up one could paint a rather bleak picture for future US oil and refined product acquisition.
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Re: How oil travels around the world, in one map

Unread postby Plantagenet » Thu 09 May 2013, 12:51:20

Terrible map.

It doesn't show any oil imports to the US west coast. Zero. Nada. :P

I know the west side of the USA is a long way from the offices of the WaPo on the east side, but this is completely wrong -----and misleading as well.
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Re: How oil travels around the world, in one map

Unread postby ROCKMAN » Thu 09 May 2013, 13:17:54

p - Good point. Had to look it u: PADD 5 has been importing around 1.2 million bopd flat for about the last 5 or 6 years. So about 15% of US oil imports are coming in to the west coast.
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Re: How oil travels around the world, in one map

Unread postby vtsnowedin » Thu 09 May 2013, 19:42:41

The map seems to be missing a couple of lines between the US and Canada and Mexico. But whatever it's flaws I'm sure it will be obsolete in just a few years due to changes in supply and countries ability to pay for imported oil.
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