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Saudi Arabia aims to expand pipeline to reduce oil exports via Gulf

Saudi Arabia aims to expand pipeline to reduce oil exports via Gulf thumbnail

Saudi Arabia aims to raise the capacity of its east-west pipeline by 40% in two years so more of its oil exports can avoid passing through the Strait of Hormuz, the energy minister said on Thursday.

FILE PHOTO: Saudi Arabia’s Oil Minister Khalid Al-Falih talks to journalists as he arrives for an OPEC and NON-OPEC meeting in Vienna, Austria, July 2, 2019. REUTERS/Lisi Niesner

Khalid al-Falih also told Reuters that importers should, as a first immediate step, secure shipments through the strategic waterway at the mouth of Gulf, after attacks on oil tankers in the area and the seizure of a British-flagged ship by Iran.

Falih said the international community should take swift action to protect oil supplies and secure the Strait, through which about a fifth of the world’s oil passes.

Oil importers “have to do what they have to do to protect their own energy shipments because Saudi Arabia cannot take that on its own,” he said in an interview during a visit to India.

The United States, which has imposed economic sanctions on Iran to halt its exports of oil, is trying to rally support for a global coalition to secure Gulf waters. Britain has called for a European-led naval mission to protect shipping.

“India also needs to do its part in securing free navigation of sea links transporting energy to the rest of the world,” Falih said after meeting Indian Oil Minister Dharmendra Pradhan.

India has deployed two warships in the Strait.

Saudi Arabia already exports some of its oil through the Red Sea using a 1200-km (750-mile) pipeline that runs from the east of the kingdom, where much of its oil production is based, to the Red Sea port city of Yanbu in the west.

Saudi Arabia aimed to maximize exports through the 5 million barrels per day (bpd) east-west pipeline if required, he said.

“We are hoping to increase it to 7 (million bpd),” Falih said, although he said expanding capacity of the east-west pipeline, called Petroline, would take two years.

Routing oil supplies away from the Strait is more difficult for countries like Kuwait and Iraq, whose only coastline is on the Gulf, or the United Arab Emirates and Iran, which have major oil export terminals on the Gulf.

But exporters are looking at alternatives, such as Iraq which plans to export more oil to Turkey’s port of Ceyhan and to build new pipelines to ports in Syria, Lebanon and Saudi Arabia.

In his talks in India, Falih said Saudi Arabia was prepared to supply additional oil to India.

He also said state-run Saudi Aramco’s talks about buying a minority stake in the refining assets of India’s Reliance Industries had not stalled, after sources told Reuters this week they had hit a roadblock.

On Saudi plans to list Aramco, Falih said the kingdom was “absolutely ready” for launching an initial public offering, adding that the share sale was “possible” next year depending on global economic and financial conditions.

The minister said global oil demand was reasonably healthy but was lower than estimates had put it at the start of 2019.

The International Energy Agency is revising down its 2019 global oil demand growth forecast to 1.1 million bpd and may cut it again if the global economy slows further amid a U.S.-China trade spat.

“I am not concerned at all,” Falih said, adding that the U.S.-China trade row was not “impacting demand to a measurable degree” as Asia oil demand was healthy.

 

Reuters



20 Comments on "Saudi Arabia aims to expand pipeline to reduce oil exports via Gulf"

  1. Cloggie on Sat, 27th Jul 2019 9:51 am 

    Sensible move.

    Iran should do the same and build pipelines to the Caspian Sea and service Eurasia like this, via Kazakhstan and Russia (if Putin sees reason to do so, for instance, once it is integrated into Europe).

    https://www.researchgate.net/figure/Map-of-the-Persian-Gulf-the-Caspian-Sea-and-Neighboring-Countries-The-Courtesy-of_fig1_228406886

    Americans in that case can still control the in- and outflow of dolphins in the Straight of Hormuz.

    Germany meanwhile is warming up to the idea of joining a naval operation in the Gulf… but within an EU-framework only.

    It’s beginning!

    https://www.spiegel.de/plus/deutschland-sollte-sich-an-einer-militaermission-im-persischen-golf-beteiligen-a-00000000-0002-0001-0000-000165100960

  2. joe on Sat, 27th Jul 2019 10:09 am 

    Stupid move. Piplines provide a wonderful fixed target. Strategically poor and I predict its bullshit to make it sound as if the regime actually reacting to events. Which of course it’s the CAUSE of current events.

  3. joe on Sat, 27th Jul 2019 10:11 am 

    As for Germans finally doing their duty as a NATO ally, great, they can call it whatever they want, but I’d bet it’s coming out of their NATO budget. Now if only they would send troops to support the neonazis in Ukraine…..

  4. Duncan Idaho on Sat, 27th Jul 2019 11:18 am 

    “Capital blights & withers all it touches. It is a new aristocracy — proud, imperious, dishonest, seeking only profit & the exploitation of workers.”

    — William Sylvis, 1868

  5. Davy on Sat, 27th Jul 2019 12:00 pm 

    “Luongo: Gabbard Going After Google Is Double Plus Good”
    https://tinyurl.com/y6lfqok9 luongo via zero hedge

    Tulsi Gabbard (D-HI) is suing Google. It’s about time someone did. It’s one thing to for conservatives and libertarians to be outraged by their treatment by the tech giant, it’s another for them to go after a female Democrat.

    “Gabbard is the only person running for the Democratic nomination worth any amount of my time. Her fundamental criticisms of the U.S. warfare state are spot on. She’s sincere about this. It’s costing her stature within her own party. She’s a committed anti-imperialist. She’s also young, inexperienced and a little bit naive. But that, to me, is part of her charm. It means she is still malleable. She’s smart enough to be outraged about where we are headed and young enough to be flexible about what the solutions are to stop it from happening. So, as such, she’s the perfect champion for the defenders of free speech and critics of the U.S. empire. A young, attractive, intelligent woman of mixed-race heritage with a service record who stands athwart the mainstream on the most important issue in politics today: the U.S. empire.”

    “Any candidate that is publicly against the empire is the enemy of not only the state, it’s quislings in the media, the corporations who profit from it and the party machines of both the GOP and the DNC. That is Gabbard’s crime. And it’s the only crime that matters. For that crime Google acted to blunt interest in her campaign in the critical hours after the first democratic debate. So, Gabbard, rightly, sued them. The two main points of her lawsuit are: 1) suspending her Google Ad account for six hours while search traffic for her was spiking and 2) Gmail disproportionately junked her campaign emails. This represents an intervention into her ability to speak to voters and, as such, is a violation of not only her First Amendment rights but also, more critically, campaign finance law.”

    “On a day when it became clear to the world that Robert Mueller led an investigation to affect the outcome of the 2018 mid-term elections (and beyond) while attempting to overthrow an elected President, Gabbard attacking the one of the main pillars of the information control system is both welcome and needed. Her filing this lawsuit is making it clear that even a fairly conventional Democrat on most all other issues is to be marginalized if she criticizes the empire.”

  6. makati1 on Sat, 27th Jul 2019 5:41 pm 

    joe, you are correct. Stupid move. Two years is a very long time in today’s world and as in any construction project, they ALL cost more and take longer. MY bet is it never happens.

    If a real war breaks out in the ME. there will be no oil to ship anywhere for a long, long time. The Iranians will take out all of the KSA oily facilities, in the first month. Pipelines included.

    After that the world economy, especially that of the US, will break down and end BAU. WW3 may be a proxy war, fought in the ME, but it will affect all countries and, especially those directly involved, like the US, Israel, KSA, etc.

    I’m glad the Philippines has no military to get involved and 4,000 miles away. Better to be on the sidelines for this one. Not even the US will be spared the pain. Wait and see.

  7. Duncan Idaho on Sat, 27th Jul 2019 6:07 pm 

    Iran can easily reduce KSA’s oil to flames in minutes– and they might as well finish off the rest of the area while they are at it.
    Can you say a world wide depression?
    I knew you could!
    I think even the Fat Boy realizes this– the US was tied down on the last instance.

  8. makati1 on Sat, 27th Jul 2019 6:09 pm 

    Feeling safe America? Maybe you should read this and then answer?

    “No Longer Credible, America’s Fake Military’

    https://journal-neo.org/2019/07/27/no-longer-credible-america-s-fake-military/

    This is where your $1,000,000,000,000.00+ is wasted.

  9. Duncan Idaho on Sat, 27th Jul 2019 6:33 pm 

    “The dollar’s share fell to 45.7% in the first quarter of 2019, down from 75.1% in 2018. When both exports and imports of goods and services between Russia and China are considered, the share of the dollar also fell dramatically but still accounted for 55.7% of payments ($14.7 billion of a total turnover of $26.4 billion), RBC reported.

    At the same time, the euro’s share in payments of Russian exports to China increased tenfold over the year from 0.7% in the first quarter of 2018 to 37.6% in the first quarter of 2019.”

  10. Davy on Sat, 27th Jul 2019 7:03 pm 

    “RBC reported.”

    You got a link?

  11. Anonymouse on Sat, 27th Jul 2019 7:45 pm 

    Tell me, what difference will it make it to your miserable exceptionalturd life if you dont get your ‘link? You dont even know what is being discussed, or who it relates too dumbass. (ie not you). You’ve been told this before, the legitimate posters here generally do not pull facts out of their arse, unlike some we could mention. Considering the source, the leading plagiarizer and cut and paste specialist, your demand here is as laughable as it is insulting.

    There is absolutely no need to cowtow, or goattow rather, to demented davytards stupid demands.

    Go away now.

  12. Davy on Sat, 27th Jul 2019 7:58 pm 

    whats got your panties in a wad annoymouse? Are you mad because I moderated you yesterday. Dumbass, if you are going to throw around data then link it…got it? In your case forget it. You are irrelevant anyway because you are just the board stalker and ad hom perve. Nothing smart comes out of your empty cranium so go play with your Xbox.

  13. Anonymous on Sat, 27th Jul 2019 8:48 pm 

    It’s a smart move by SA. Maybe even expand it to be able to take some Kuwaiti and Iraqi volumes. It’s good to have options. If the pipeline gets hit, they ship via the Gulf. And vice versa. Of course, both might get hit, but it’s harder to do that than one. Also, the value of the production easily justifies the cost.

  14. Cloggie on Sat, 27th Jul 2019 10:35 pm 

    “RBC reported.”
    You got a link?

    What is so difficult Davy of entering a text snippet in Google and the answer yourself directly?

    https://www.themoscowtimes.com/2019/07/26/us-dollars-share-collapses-in-payments-for-russia-china-exports-a66587

    U.S. Dollar’s Share Collapses in Payments for Russia-China Exports

    Its share fell below 50% for the first time in history.

    And no, this is not Russian propaganda, but the Moscow Times is owned by the filthy, Putin-hating, Dutch communist Derk Sauer.

    The dollar’s share fell to 45.7% in the first quarter of 2019, down from 75.1% in 2018. When both exports and imports of goods and services between Russia and China are considered, the share of the dollar also fell dramatically but still accounted for 55.7% of payments ($14.7 billion of a total turnover of $26.4 billion), RBC reported.

    At the same time, the euro’s share in payments of Russian exports to China increased tenfold over the year from 0.7% in the first quarter of 2018 to 37.6% in the first quarter of 2019.

    You know what this means, eh, empire dave?
    Yet another nail in the coffin of empire.

  15. makati1 on Sat, 27th Jul 2019 10:39 pm 

    anon, why is it harder to hit two targets than just one? The Gulf will be blocked, maybe the first day of hostilities. Sink a few ships in the Strait and it is toast. A few missiles and the pipeline(s) are also toast until after the war. Not to mention that the shipping ports and refineries will be hit almost as fast.

    This will not be an Afghan style 20 year “war. Maybe 20 days. I hope you are prepared for a collapse of the US economy and JIT deliveries.

  16. juanpee id fraud on Sun, 28th Jul 2019 2:39 am 

    Davy on Sat, 27th Jul 2019 7:58 pm

  17. Davy on Sun, 28th Jul 2019 5:16 am 

    “What is so difficult Davy of entering a text snippet in Google and the answer yourself directly?”

    cloggo, links are important. It shows legitimacy and professionalism. This is something Idaho rarely does. It is like his calling a P8 military 737 version an implied 737 passenger plane with 37 people on board.

  18. More JuanP fraud on Sun, 28th Jul 2019 5:17 am 

    “juanpee id fraud on Sun, 28th Jul 2019 2:39 am Davy on Sat, 27th Jul 2019 7:58 pm”

  19. Robert Inget on Sun, 28th Jul 2019 12:08 pm 

    I’m perhaps the last (big ‘D’) Democrat still believing in Canada’s oil and AG as America’s ‘last resort’.

    Ask a desert island farmer which she would rather have to get to harvest, a gold bar, bitcoin, or a full storage tank of diesel?

    Basics: Water, soil, diesel.

    Today, persons of great wealth can buy almost any Canadian oil company, lay off almost every blue collar worker, stop drilling ENTIRELY, sell only
    current production at $55 US and make millions after debt is repaid in devalued USD’s.

    I see great interest in gold and digital coin as a hedge over USD collapse. Almost none over crude oil. In fact, because of economic concerns, crude oil is losing value.

    There’s a lower limit to oil consumption.
    When that limit is reached America’s SPR will have been drained in order to keep Trump voters on board. (millions have come out in the last two years) At current consumption rates USABLE oil will be gone in 2020.

    Shale is not profitable below $100.
    Six words say it all.

  20. Davy on Sun, 28th Jul 2019 12:55 pm 

    concerning the “I see great interest in gold and digital coin as a hedge over USD collapse.’

    Let’s take a look at bob’s track record:

    1.Robert Inget on Sat, 6th Apr 2019 3:00 pm

    https://www.reuters.com/article/us-oil-condensate/u-s-oil-industrys-billion-dollar-question-what-is-condensate-idUSKCN0HX0BU20141008
    What is the meaning of crude condensate?
    A crude condensate is a very light crude oil. Crude condensate occurs like any other crude oil it is so light it is almost like it has been already partially distilled and striped from its heavy parts. It can be challenging for certain refinery to use as such because the distillation curve is too much skewed toward the light ends. It can also be used as petrochemical splitter feedstock.
    It’s true I’m confused. (too)
    I knew at once, when Trump openly went to war on Venezuela’s heavy, oil was going to go thru $60 like a fart through Spandex.
    Most folks (including Dave) just don’t get it.
    Exxon’s Gulf refineries are tuned for Venezuelan
    crude. There is a substitute from a so far friendly nation, Canada. Oil Sands or tar sands if you will
    yields a heavy oil like that of VZ’s Orinoco Valley.
    Why ‘most folks’?
    1) Libya (where all the new fighting aroused oil traders) in light oil. NOT from bitumen.
    2) Saudi Arabia may be maxed out until new tech permits greater production.
    3) That XL pipeline from Mid US to those Gulf refineries yet to get final digging papers.
    IOW’s, SU, CNQ, USA, etc, SOL. No pipelines, no
    heavy crude needed to make vital diesel.
    The reason Keystone was always on ice was because we had a quick, reliable source in Venezuela.
    Suddenly… Trump signs a few permits with questionable validity. Even if digging started
    Monday, XL wouldn’t fill till March 2020.
    I recon problematic trains and trucks may be used.
    IOW’s this ‘shortage’ of heavy oil is NOT for a few days or months but years.
    Today.. Trump ordered all Venezuelan deliveries of oil to Cuba stopped. IOW’s since he didn’t stop Iranian oil?
    Do I need to remind anyone here? What Trump is doing will not go down well with Putin.
    Russia has military personal as well as oil workers
    stationed in VZ. Putin will do what he has to do.
    United States embargo against Cuba – Wikipedia
    https://en.wikipedia.org/wiki/United_States_embargo_against_Cuba
    United States embargo against Cuba. Despite the existence of the embargo, the United States is the fifth largest exporter to Cuba (6.6% of Cuba’s imports are from the US). Cuba must, however, pay cash for all imports, as credit is not allowed.
    Cuba was getting deeply discounted crude from VZ in exchange for Medical personal.
    If Cuba is denied 93% of its fuel, Cuba would do what any nation would do. (protect delivery tankers by military means)
    No one can predict how this situation resolves.
    ONLY one thing certain. $100+ oil gets printed
    by July 4th.

    Robert Inget on Sun, 5th May 2019 12:21 pm

    BREAKING:
    https://www.cnbc.com/2019/05/05/trump-says-tariffs-on-200-billion-of-chinese-goods-will-increase-to-25percent-on-friday.html
    US stock markets crash in AM

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