The big deal these days is Donny and his delusional idea for the Strait of Hormuz but none of them will restore the flow of oil….is there answer to some sort of restoration?
This article covers the possibilities and god knows oil companies do not want to go without their money maker….
The largest global oil shock on record has catapulted U.S. gasoline prices above $4 a gallon, rekindled inflation and set the stage for November’s midterm elections.
It all traces to fighting in a narrow strip of water thousands of miles away. Iran’s near-closure of the Strait of Hormuz choked off a trade route responsible for about 20% of global oil supply, or nearly 21 million barrels of oil each day, according to the U.S. Energy Information Agency. A U.S. blockade of Iranian ships deepened the crude shortage.
On-again, off-again negotiations have shown little sign of a breakthrough, encouraging oil producers and Gulf nations to seek out other trade routes, some of which are already transporting millions of barrels each day.
Those alternatives, in theory, could eventually restore most of the lost oil flow and provide relief at the pump, some analysts told ABC News, but construction would take several years and require major investment. Still, they said, the approach may offer a durable fix, heading off future flareups in the Strait.
“You’ve already got some projects in the works. I don’t see any turning back,” Tom Seng, a professor of energy finance at Texas Christian University, told ABC News. “Nobody wants to get stung without a solution again.”
Shipping traffic in the Strait has declined sharply since the outbreak of war in Iran, according to oil data company Kpler. An average of about 13 ships crossed the Strait each day last week, the firm said in a post on X, down from more than 100 ships per day before the recent conflict.
https://abcnews.com/Business/gas-prices-fall-companies-build-oil-routes-bypass/story
The pipeline idea is a fanciful one….it will go through some unstable areas to make it to market….and then how will they secure the pipeline from attacks that will stymie oil flow?
Let me guess….the US military will provide security for these operations, right?
I think this is a bad idea….and if instigated would come back to bite us in the ass.
What do you guys think of this ‘plan’?
On a side note….there is talk of after the war with Iran that US would draw down its presence in the region….
The US military is considering reducing its military presence in the Persian Gulf, The Washington Post reported on Tuesday, as many of its bases in the region have been badly damaged by Iranian attacks.
Many of the US bases in the Gulf had been evacuated before the US and Israel launched the bombing campaign against Iran on February 28 due to their vulnerability, and some have been essentially abandoned following heavy Iranian attacks.
The Post report said that the damage to US bases in the Gulf has “prompted a once-in-a-generation chance for the Pentagon to reconsider its presence in the region” and that the Pentagon had already signaled it may not rebuild its Gulf bases to how they were before.
Sources told the paper that Adm. Brad Cooper, the head of US Central Command (CENTCOM), has been involved in discussions about the future of the US military presence in the region and supports holding deliberations on potentially moving troops west from the Persian Gulf.
Notably, a pullback of US troops from the Persian Gulf has been one of Iran’s conditions for a deal to end the conflict. Iranian officials have frequently said that they believe this war will lead to a US “retreat” from the region.
(antiwar.com)
Does anyone think oil companies will allow this to take place?
I don’t.
I Read, I Write, You Know
“lego ergo scribo”
How long will it take to build a pipeline? And once built, it is incredibly easy to disrupt by land-based sabotage or direct missile attack. Just more speculative nonsense designed to fool investors into shelling out money for a pipeline that will never work.
Best wishes, Pete.
That is pretty much the way I see as well…..chuq
Exactly right, Pete. If anything a pipeline is going to be far more vulnerable than moving it by tankers. You don’t even need any sophisticated technology, just one fanatic with a suicide bomb would shut it down.
WHat’s especially infuriating about this is that we have energy systems that are relatively cheap, easy to deploy and dependable that could easily replace much of our dependence on oil. I comfortably run my whole house off a few solar panels on the roof. If I added a few more panels and additional battery capacity I could easily keep an EV charged as well.
But most are not profitable to the fat cats and that will make all the difference. chuq
Exactly. The solar industry is more, oh, distributed, let’s say? It isn’t a virtual monopoly the way oil and natural gas is, so the individual manufacturers and installers don’t have the money or influence that the fossil fuel companies have to bribe congressmen and state legislatures.
And don’t even get me started on the coal industry. “But we’re going to lose all those jobs!” they whine. What jobs? The solar and wind power industry directly employs about 410,000 people. The coal industry directly employs about 38,000, less than 10% of that. So which is more important to the overall economy of the country, renewables or coal?
The coal companies have much more cash to spread around….chuq
I couldn’t read that ABC News article – got “PAGE UNAVAILABLE” message. However, I do know that Israel is pushing hard for a pipeline project because it has already secured control of major gas fields in the eastern Mediterranean and is anticipating more with its armed imperialism throughout the region.
Even some of the Arab countries are getting into bed with Israel….it is pathetic. chuq