Thursday, October 11, 2012

Energy Security Update: Straight of Hormuz Less Crucial to US in 2012

Uber strategic analyst Tom Barnett points to a recent Financial Times piece on oil metrics and this most important piece of aquatic real estate. Quoting FT:
Earlier this year, Riyadh and Abu Dhabi opened new pipelines that will increase the ability of countries to bypass the strait. Fully operational, 6.5m barrels per day, or about 40 per cent of total flows, will now be able to take alternative routes. “The Middle East is much better prepared now than a year ago to cushion the impact of a disruption in the Strait of Hormuz,” says Edward Morse, head of commodities research at Citigroup and former US deputy assistant secretary of state for international energy policy.
Recommend you read the whole post, which includes a great map and infographic, HERE. Andy

1 comment:

Anonymous said...

This recently released "confidential" report from Germany's equivalent to the CIA draws a similar conclusion about the diminished importance of the Straight of Hormuz in the future. Albeit for a different reason, i.e. more domestic oil production in the United States: