Register

Peak Oil is You


Donate Bitcoins ;-) or Paypal :-)


Page added on June 25, 2019

Bookmark and Share

Aramco Can Keep Crude Flowing if Hormuz Hit

Aramco Can Keep Crude Flowing if Hormuz Hit thumbnail

Saudi Arabian Oil Co. has the experience and infrastructure it needs to keep crude flowing should supply through the Strait of Hormuz be disrupted, according to the chief executive officer of the state-run producer.

“We are increasing our readiness,” Amin Nasser said in an interview in Seoul on Tuesday. “We can supply through the Red Sea and we have the necessary pipelines and terminals.”

Brent crude has jumped about 8% since mid-June as worsening relations between the U.S. and Iran have magnified fears that shipments could be disrupted through the Strait of Hormuz, a narrow choke-point through which about one-third of all seaborne crude flows. There have been a series of attacks on tankers over the past few weeks and the downing of an U.S. Navy drone, which American officials have blamed on Iran.

“It’s a concern for the whole world because that is an important supply route for a lot of crude, not only from Saudi Arabia,” Nasser said.

Saudi Aramco operates a pipeline with a capacity of 5 million barrels a day that carries crude 1,200 kilometers (746 miles) between the Gulf and Red Sea, enabling it to ship oil from both sides of the country. But that compares with the company’s total exports of around 7 million barrels a day, meaning it would need to find other ways of getting any remaining oil to the market.

In mid-May, flows through the cross-country link were halted after two pumping stations were hit by a drone attack by Yemen’s Iranian-backed Houthi rebels.

The state-run company, which is the world’s biggest oil exporter, traces its beginnings to the 1930s and kept pumping crude through the Iran-Iraq war and the two Gulf Wars. Aramco would draw on that experience to keep supplies flowing, Nasser said.

“We had experience through the Gulf conflict but we have always met our commitments to our customers,” he said. “So we have a track record of building enough flexibility in the system to manage a situation or a crisis.”

Stakes in Korea

Nasser is visiting South Korea this week along with a Saudi delegation including Crown Prince Mohammed bin Salman. Saudi Aramco has been the biggest shareholder of South Korea’s S-Oil Corp. since 1991 and it bought a 17% stake in Hyundai Oilbank Co. for $1.2 billion in April.

Hyundai Oilbank’s purchases of Saudi crude are set to rise from the current level, Nasser said. The company bought about 15.5 million barrels of oil from the kingdom last year, according to Korea National Oil Corp. data. Separately, S-Oil will announce Wednesday plans to start another feasibility study on further expanding its refining capacity, which will be bigger than the latest capacity addition at its Ulsan plant, he said, without giving further details.

While Saudi Arabia was South Korea’s biggest oil supplier last year, with shipments of 885,000 barrels a day accounting for about 29% of total imports, crude from the U.S. jumped more than fourfold during the same period, KNOC data showed.

With rising geopolitical risks in the Gulf region and the Organization of Petroleum Exporting Countries and its allies trimming output, Korean processors may further boost purchases from America. Still, Nasser said he’s not worried about the competition from the U.S.

“We are not concerned,” he said. “We have the lowest cost position with an excellent infrastructure to supply to our customers. In the past, we have never failed to supply and meet our deliveries. We also have different types of crude, which is critical.”

RIGZONE



36 Comments on "Aramco Can Keep Crude Flowing if Hormuz Hit"

  1. makati1 on Tue, 25th Jun 2019 10:52 pm 

    RIGPORN of course! What a huge pile of camel shit! Oil will stop when the SHTF in the ME. If they think they can protect a pipeline, they are as delusional as Trump. Those will be the first missile targets hit by Iran. That will end the KSA as a country of oil and the return to a country of camels. Ditto for the UAE pipeline. Not to mention the shipping ports and refineries.

    https://nationalinterest.org/blog/buzz/iran-has-amassed-largest-ballistic-missile-force-middle-east-58882

    Iran holds ALL the ACES and they know it.

  2. makati1 on Tue, 25th Jun 2019 10:59 pm 

    For those dumbed down Americans here is a map of Iran:

    https://www.freeworldmaps.net/asia/iran/map.html

    ^_^

  3. Mick on Wed, 26th Jun 2019 3:36 am 

    IMHO trump won’t go to war with Iran this year, he loves the overinflated stockmarket too much to risk a crash but maybe after the election . Got to keep those oil prices up for the shale scam to be seemingly feasible.

  4. Theedrich on Wed, 26th Jun 2019 4:27 am 

    EVERYTHING oily is ALREADY targeted by Iran.  If the U.S. attempts a military attack on that country, America will “win,” but at the cost of the world economy.  If a few missiles haphazardly aimed by poorly trained Houthi rebels could hit an Saudi target or two, imagine what skilled and amply supplied Persian missile forces could do.

    America would have to use a surprise massive bombardment, perhaps including “tactical” nukes, in order to suppress such forces.  Trump has in effect said that he would choose that course, and “obliterate” Iran.  Yidland would be exultant, and a rejoicing KSA would buy even more U.S. weapons, thus keeping America great for a short period longer.  Millions of Iranians would die in the aftermath, and Yankee “heroes” would be praised for their gallant work.  American TV viewers would be excited by all the commotion, and hail the great victory over the new Nazis in the Levant.

    The American administration is trying to force Iran to the breaking point where it will strike out in desperation, thereby giving the Empire the necessary “justification” to bring even more devastation to the Middle East.

    Meanwhile Russia and China will be working even more intensely on developing hypersonic weapons in order to protect themselves from the nation that is using “calculated ambiguity” to threaten the world.  And if they achieve certain breakthroughs, they may also put an end to the funny farm that thinks it has a right to control the entire planet.

  5. Mick on Wed, 26th Jun 2019 4:48 am 

    You might be right Theedrich but I still think the orange oompah lommpa will back down or water the situation down as he has numerous times as in North Korea and divert attention onto another staged event. . His priorities seem to be only financial what else would you expect from a real estate (con) salesman.

  6. Dredd on Wed, 26th Jun 2019 7:13 am 

    He didn’t work for ARAMCO but Albert Einstein called him ‘the greatest mind in American history.’ (The Ghost Plumes – 9).

  7. majece majece on Wed, 26th Jun 2019 7:49 am 

    I recommend you to check https://homeworkhelper.net/blog/argumentative-essay-topics out if you want to know more about argumentative essay topics. It will help you to get a high grade for your essay

  8. Cloggie on Wed, 26th Jun 2019 9:04 am 

    The US can’t afford to nuke millions. They won’t.

  9. Robert Inget on Wed, 26th Jun 2019 11:02 am 

    President Donald Trump said Wednesday “I hope we don’t” have a war with Iran, but it “would not last very long.”

  10. peakyeast on Wed, 26th Jun 2019 11:12 am 

    WoW – the new peakoil.com is just super-responsive. Many thanks to the administrator !!!!! It really makes a difference.

  11. Cloggie on Wed, 26th Jun 2019 12:07 pm 

    La Symonds has tweeted again:

    https://twitter.com/KarenPollock100/status/1143919211628175362

    Wants to start a contest with Labour about who is the least racist and least anti-semitic.

    Something tells me that there is no longer a Johnson-Symonds power couple a la Frank and Clair Underwood.

    If they were, she would have signaled that by now. The silence is deafening.

    Poor Boris.

  12. Cloggie on Wed, 26th Jun 2019 12:11 pm 

    (or rather she retweeted a jewess Karen Pollock)

    https://en.wikipedia.org/wiki/Karen_Pollock

    Pollock is probably still Labour, despite Corbyn:

    https://twitter.com/karenpollock100/status/1036707791761801216

    Conclusion: no serious Tory campaigner would retweet a Labour voice.

    Sorry Boris, time to rush into a new girlfriend, because you can’t do without. The supply is endless.

  13. Cloggie on Wed, 26th Jun 2019 12:13 pm 

    The original source:

    https://twitter.com/carriesymonds

    Sorry for the confusion.

  14. Theedrich on Thu, 27th Jun 2019 2:46 am 

    The Dems ignore the nuclear elephant in the room.  They prefer to concentrate on their various versions of Communism, their love of open borders, and their hatred of President Trump (and, sotto voce, of Whites in general), while (except for Tulsi Gabbard) saying nothing about Yankeeland’s drive to conquer the world through war.

    On this last point, it is instructive to note the most recent Pentagon “Joint Publication 3-72:  Nuclear Operations” of 11 June 2019, which the Department of Defense first published online, then quickly deleted, but not before a copy was made by the Federation of American Scientists and posted at https://fas.org/irp/doddir/dod/jp3_72.pdf.  In it, the acolytes of Dr. Strangelove write approvingly,

    “Using nuclear weapons could create conditions for decisive results and the restoration of strategic stability.  Specifically, the use of a nuclear weapon will fundamentally change the scope of a battle and create conditions that affect how commanders will prevail in conflict.”

    In addition, both political parties base their “America-first” statements and policies on abysmal American lie-based ignorance regarding nuclear war.  See the July issue of Bulletin of the Atomic Scientists which reveals this lack of understanding at https://tandfonline.com/doi/full/10.1080/00963402.2019.1629576?scroll=top&needAccess=true for a survey report which states in its conclusion,

    “This polling exercise demonstrates that the majority of Americans do not want President Trump to return to threats to attack North Korea.  But the polls also highlight, for better or worse, a strong retributive streak in US public opinion.  And the data confirm that some Americans lack any sense of a nuclear taboo, and some appear to hold a kind of atomic attraction.”

    All of this indicates that the amnesiac American polity is slouching ineptly but unquestionably toward its own suicide.

  15. Cloggie on Thu, 27th Jun 2019 4:47 am 

    “All of this indicates that the amnesiac American polity is slouching ineptly but unquestionably toward its own suicide.”

    Will it drag the rest of the world with it?

  16. Cloggie on Thu, 27th Jun 2019 4:51 am 

    The main saboteur of European-Russian rapprochement approaching end of life?

    https://www.dailymail.co.uk/news/article-7187057/Germanys-Merkel-seen-shaking-second-time-month.html

    Let’s hope so!

  17. Cloggie on Thu, 27th Jun 2019 4:56 am 

    https://www.dailymail.co.uk/news/article-7186951/Japans-foreign-minister-warns-Britain-no-Deal-Brexit-threaten-UKs-automotive-industry.html

    “Japan’s foreign minister warns Britain a No-Deal Brexit could threaten UK’s automotive industry ”

    An older link but still valid:

    https://metro.co.uk/2018/11/13/british-airways-may-leave-britain-if-theres-a-no-deal-brexit-8133589/amp/

    “British Airways may leave Britain if there’s a no deal Brexit”

  18. Antius on Thu, 27th Jun 2019 6:22 am 

    A review of underwater compressed air energy storage, written 1 year ago, by the late Gordon Andrews. Well worth a read if you are interested in real technical issues.

    http://euanmearns.com/a-review-of-underwater-compressed-air-storage/

    Underwater CAES is considered to be one of the most promising energy storage systems amongst supporters of a renewable energy transition. There are two competing schemes: (1) Storage in underwater balloons; (2) storage in underwater concrete cylinders.

    Conclusion: Underwater CAES is in early stages of development and shows some promise for short-term energy storage, levelling fluctuations over a period of hours. It appears capable of offering storage at a cost of $250/MWh under these conditions, which is expensive for a unit of energy, but quite competitive with other means and affordable if only a modest proportion of energy supplied is actually stored.

    One problem is the number of suitable sites offshore is surprisingly limited, as most offshore sites are either too far from shore or too shallow. Additionally, long-term energy storage is unaffordable for the same reasons as virtually all other storage options – the expensive capital asset is poorly amortised if it provides static storage for long periods of time, without regular cycling. To illustrate the point, if I use a battery to store 1kWh and drain it completely each day, then I have stored 3650kWh over a 10 year battery life and the marginal cost of storage may be affordable. But if I use that same battery to store energy interseasonally, then after 10 years I have to divide all of the storage costs by 10kWh, making the marginal cost of storage hundreds of times more expensive.

    In a nutshell: Storage is only workable for short-term grid fluctuations. At some point, we have to face the fact that variable electricity generation equates to variable electricity supply.

  19. Davy on Thu, 27th Jun 2019 7:05 am 

    “In a nutshell: Storage is only workable for short-term grid fluctuations. At some point, we have to face the fact that variable electricity generation equates to variable electricity supply.”

    This is the reason so many people today are fake green. You can’t buy a green life. You can’t make a dirty life green like wealthy fake green liberals think as they point their dirty fingers at deplorables in their condescending holier than thou BS. I would take it a step further and say civilization is not capable of real change without a collapse of sorts. The current social narrative must be completely discredited and that will not happen without collapse. The problem with collapse is we may never recover. The fake green nonsense of today does not address the systematic issues of modern life, the affordability issues, and most importantly the issues of behavior. Behavior is the biggest problem and one that is a trap at the macro level. In this highly competitive world of political, economic, and military competition any nation that attempts to be truly green will be outmaneuvered by those who pursue competitive policy by whatever means. This is the reason China is still dirty. It knows renewables are good to a point. China is hell bent on global domination this is clear and their policies reflect this. Europe is deindustrializing because of their fake green policies. I admire Europe and would set their efforts as an example of the best the world can do but they are still not green. Euros want green but with luxury and affluence. Real green will have less and do less. No nation is going to embrace this because all peoples are brain washed into thinking technology will allow this.

  20. Cloggie on Thu, 27th Jun 2019 7:19 am 

    https://edition.cnn.com/2019/06/26/business/lightyear-one-solar-powered-car/index.html

    “Dutch company develops partly solar powered car”

  21. Davy on Thu, 27th Jun 2019 7:22 am 

    “Dutch company develops partly solar powered car”

    fake green shit. get back to me when you have real news

  22. Antius on Thu, 27th Jun 2019 8:24 am 

    “Dutch company develops partly solar powered car”

    The problem is that a solar panel, even under full sun conditions, will produce about 200W/m2. A tesla car draws about 0.14kWh/km, which amounts to average battery draw of 10kWh. Motor power is more, given that a third of energy is recovered by regenerative breaking.

    So realistically a 1m2 solar panel on the roof will provide 2% of power in full sun and a smaller proportion at reduced insolation levels. And it contributes to vehicle weight.

  23. Robert Inget on Thu, 27th Jun 2019 8:46 am 

    Full PV coverage can recharge the 12 V battery. Most EV’s still use 12 V for computers, sound & communication systems, in house climate.

    PV energy can be collected while the vehicle is parked, (most of the time).

    If a person looks hard enough one can see small
    PV panels being used by utilities for signs, monitoring, etc.

    WHEN the grid goes down, at least we know why and where.

  24. Robert Inget on Thu, 27th Jun 2019 9:12 am 

    (You can’t buy a green life)

    This fake Green Lib can sure try.

    Studying energy from ALL aspects gives a person
    insight into geopolitics, science, human nature.

    I’ll admit, paying forward on solar was much harder in the 1990’s when all my neighbors
    remarked “it doesn’t pencil out” or some such
    negativity. I never said I was trying to ‘save the planet’ (in a small way).
    None, not Democrat or Republican could see any climate connection back then in any case.

    Our $40,000 dollar PV investment can be duplicated today for half of that. But, when most of my stocks went south in 2008, our solar array kept on chugging like nothing had happened.
    Zero utilities expense took one burden away.

    BTW, my first computer took almost 15 minutes to
    log on and cost almost $2,000 in 1985 money.

  25. Cloggie on Thu, 27th Jun 2019 10:12 am 

    “So realistically a 1m2 solar panel on the roof will provide 2% of power in full sun and a smaller proportion at reduced insolation levels. And it contributes to vehicle weight.”

    … but a car has a lot of idle time where it can still charge.

    Upshot: ca. 20,000 free km’s per year in a region like California. That’s more than the average Californian drives. He doesn’t have to plug his car for months on end. 5 m2 solar cells are cheap, like 500€ or ten visits to the gas station. Perfect storage opportunity, no grid load.

  26. joe on Thu, 27th Jun 2019 11:01 am 

    So everyone in Asia can send their cars to California every day to charge before they use them. Since most global economic growth comes from there…..
    Next stupid clogger idea please…

  27. Davy on Thu, 27th Jun 2019 11:44 am 

    “(You can’t buy a green life) This fake Green Lib can sure try.”
    Great bob but when people say they are green because they bought some panels they are really fake green

    Studying energy from ALL aspects gives a person
    insight into geopolitics, science, human nature.

    “Our $40,000 dollar PV investment can be duplicated today for half of that. But, when most of my stocks went south in 2008, our solar array kept on chugging like nothing had happened.”
    I have $20K in my system

    “Zero utilities expense took one burden away.”
    Come on bob you have some utility expenses. How do you cook? What about drying cloths. What about hot water?

  28. Antius on Thu, 27th Jun 2019 11:46 am 

    A truly fascinating article on hydraulic air compressors (trompes). An old idea that could be very useful in the future. Efficiency is up to 85% for a closed fluid cycle, which rivals an electrical generator.

    http://tinyurl.com/y66efw88

    I wonder if anyone has considered integrating a trompe into the tower of an offshore wind turbine, coupling the rotating shaft to some kind of hydraulic pump. Much of the difficulty with offshore CAES concerns the inefficiency of transferring air offshore to the store and then back onshore for generation. To get flowrate, there needs to be a pressure drop and losing pressure means losing energy. The longer the pipe, the larger the required pressure-drop for any given flow. The lower the initial pressure, the more significant the energy loss.

    One solution to this problem is to fit offshore wind turbines with hydraulic compressors using clean sea water (i.e. integrate the compressor into the turbine tower), store the compressed air at the base of each turbine in a concrete chamber and then pipe it to an air turbine on a platform that is central to the wind farm. The only thing that gets transferred to shore is electricity. Another advantage would be the elimination of generator systems from individual wind turbines. Instead, up to 100 turbines would power a central generator through compressed air. No need for rare earths – just steel, concrete and polymers.

  29. Davy on Thu, 27th Jun 2019 11:47 am 

    “Upshot: ca. 20,000 free km’s per year in a region like California. That’s more than the average Californian drives.”

    BS, on the free shit. Do the numbers on what the other equipment cost that goes with the 1m2 solar panels. Panels are cheap it is all the other stuff that adds up. Then amortize that out over 10-15 years and get back to me.

  30. Davy on Thu, 27th Jun 2019 11:49 am 

    “Instead, up to 100 turbines would power a central generator through compressed air. No need for rare earths – just steel, concrete and polymers.”

    Sounds great Antius!

  31. Antius on Thu, 27th Jun 2019 12:25 pm 

    “Upshot: ca. 20,000 free km’s per year in a region like California. That’s more than the average Californian drives.”

    Might be a useful addition to a freight train if the panels are light weight. Trains have low frontal area with little air resistance and low driving friction per unit mass. Trains can be kilometres long and tend to travel quite slowly – 20mph (9m/s) is quite common. So specific power requirements are low and the cost of subsystems can be spread over hundreds of kW of power. At constant and steady speed, very little energy is lost to braking over long distances.

    http://www.teninsider.com/10-longest-trains-in-the-world/

    A train that is 2m wide and 2000m long would generate 800kW in full sun. I don’t know if that would be enough to overcome static friction. But rolling friction coefficient for a train is about 0.001.

    https://www.school-for-champions.com/science/friction_rolling_coefficient.htm

    So 800kW is enough to push 8000 tonnes at 10m/s at zero gradient. At lower insolation, power is less and speed would be reduced. If you wanted to transport freight over long distances (like the US or Australia) and weren’t too bothered about how long it took; then a solar powered train is a solution that could be made to work and wouldn’t require much in the way of additional infrastructure. If we could produce a train with an average speed of 3m/s, it would still do 2000km in a week. It could traverse the continental US in a few weeks. Food for thought.

  32. Cloggie on Thu, 27th Jun 2019 12:38 pm 

    “Might be a useful addition to a freight train if the panels are light weight.”

    https://www.youtube.com/watch?v=EsfFKTGwnrw

    http://www.solar-frontier.com/eng/news/2019/0117_press.html

  33. Robert Inget on Thu, 27th Jun 2019 1:02 pm 

    I’ll send anyone plans for a ‘solar dryer’ free SASE.
    (line, tree or pole, spring operated clothes ‘pins’)
    In winter we dry clothes in our ‘Florida Room’.
    (a greenhouse)

    We heat&air, pump water, cook, compute, drive up to 150 miles (including return), yes, bathe in hot water, watch CNBC, Netflix, all on solar power.

    In a very real sense our Nissan Leaf, a VW e.Golf
    are already solar operated.

    Yes, we do have a grid tie system. No storage (as yet) I grow credits for three seasons and draw on the grid for winter and nighttimes.

    If WTI sustains over $55. for another few months
    I’ll spring for a “Power-Wall”.

    In Japan, Nissan sells a a device where a person or company can use the Leaf battery as extra storage like a Tesla Power Wall. I believe lawyers
    are stopping imports of such devices to the US.
    Power companies actually fear home solar.

    I requested permission to build a far larger system on my ‘back forty’ (10 acres really) Pacific Power did not reply to my e.mails.
    The plan was to rent computer electric power to
    Bitcoin ‘miners’.

    I believe once storage goes down in price, and/or
    natural gas prices improve, home solar will win over most detached home owners.

    Having (only) grid power will be akin to having a ‘land line’.

    Most people don’t live in a detached house with south facing roofs or extra land.

    Most folks in Asia, for instance, are slaves to
    renting, utilities, polluted air, food shortages, etc.

    I’m painfully aware. Why we (I) should feel so privileged .
    It’s the same all over. rich people can afford to buy in bulk, own more than a few square meters, have
    an ‘expensive’ but cheap car to run, retire with no rents or utilities and Medicare.

  34. Cloggie on Thu, 27th Jun 2019 1:37 pm 

    Keep em coming, Antius!

    “A truly fascinating article on hydraulic air compressors (trompes).”

    https://deepresource.wordpress.com/2019/06/27/hydraulic-air-compressor-demonstrator-project/

  35. Sissyfuss on Thu, 27th Jun 2019 3:54 pm 

    How does one reconcile the need for constant refrigeration with intermittency? Do we go back to slicing up a frozen river and storing the slabs in sunken warehouses with plenty of sawdust? And will we all wait for the ice to be delivered by horse drawn wagon and put in our little iceboxes? Our ancestors were one tough bunch. We are so spoiled.

  36. Gaia on Fri, 28th Jun 2019 10:50 am 

    WE are our own worst enemy.

Leave a Reply

Your email address will not be published. Required fields are marked *