Iran-Israel War: Amidst Iran’s threats in the Strait of Hormuz, there are two pipelines in the Gulf that could supply oil and gas to the world. One in Saudi Arabia and one in the United Arab Emirates. Currently, they are the only way to transport large quantities of oil from the Persian Gulf to the world market during the Iran war. These routes supply oil through pipelines, not ships. So even if it is not a permanent solution, it can at least reduce the serious crisis that has been created in the world during the Iran war. These pipes cannot replace the flow of oil from tanker ships, but their use is preventing a worse crisis.
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Saudi Arabia in particular has been pumping as much crude as possible into the Red Sea port of Yanbu through a pipeline built in the early 1980s. At the time, the war between Iran and Iraq posed a similar threat to the Persian Gulf. Nasser, CEO of Saudi Arabian oil company Aramco, said that although it has faced setbacks in the past, the region’s oil and gas industry has faced its biggest crisis yet. This means that approximately 20 million barrels of oil are supplied to Saudi refiners.
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Iran is preparing to mine this narrow waterway. Trump said on Tuesday that the US had completely destroyed 10 Iranian mining vessels. The closure of the Strait of Hormuz has halted oil production in Iraq, Bahrain and Kuwait. Bahrain’s oil company Bapco declared force majeure on Monday, as did Qatar, which produces about 20 percent of the world’s liquefied natural gas.
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What is Plan B for the Hormuz Crisis?
Two pipelines could solve the crisis About 20-30% of the world’s oil will pass through the Strait of Hormuz. It passes through a strait. Due to the war, this route has become unsafe. In such a scenario, two pipelines from Saudi Arabia and the UAE are becoming a lifeline, bypassing this route and delivering oil directly to the world. Saudi ‘East-West’ Pipeline – The most important pipeline in Saudi Arabia, it is 746 miles long. It transports oil from the eastern part of the country (where oil wells are located) to the port of Yanbu on the west coast. It connects directly to the world market through the Red Sea.
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