𝗢𝗶𝗹 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗿𝗮𝗸𝗶𝗻𝗴 𝗶𝗻 𝗯𝗶𝗹𝗹𝗶𝗼𝗻𝘀 𝗺𝗼𝗿𝗲 𝗶𝗻 𝗽𝗿𝗼𝗳𝗶𝘁𝘀 𝗮𝘀 𝗴𝗮𝘀 𝗽𝗿𝗶𝗰𝗲𝘀 𝗿𝗶𝘀𝗲.

[Steinbeck]

Saudi Arabia cannot export most of its oil through pipelines, so it will not return to pre-war levels as long as the Strait of Hormuz is closed. 20% of the worlds oil is behind the Strait of Hormuz, with maybe 5% being able to get around the Strait of Hormuz by pipeline, leaving 15% undelivered. And the pipelines are easy for drones to hit, so it is questionable how well that will work in a war.

Only 10% of the region's oil was shipped through the Strait. Saudi oil was half that. They shipped via another port, and then there are other pipelines; they were back to shipping to their full shipping within days. Just a fact. The other countries are shipping via other routes; maybe 5% of the total is via the Strait on tankers, and a big chunk of that is Iranian.

There is an extensive network of pipelines in the ME, not just one line to Yanbu. Japan and Taiwan can get oil via the Panama Canal and American pipelines, and soon their LNG will come from Alaska as well. The blockade affects Red China's strategic position as well, since it means they can't threaten their neighbors with impunity any more, especially Taiwan.

It's nothing but win for the US and its allies. The price here in the US will come down as soon as the oil companies get threatened with political sanctions, as they always do and have since WW I. Ironically it will be the Texas govt. that has the regulations and legal controls to do so, same as they have since the the early 1900's and Gov. James Hogg's war on Standard Oil's monopoly.

Pipelines are easy to build, and there are plenty of places to bypass the Strait of Hormuz, and Yemen for that matter.

 

[Steinbeck]

trump is making a fortune on oil right now. What are the odds he removes his armada from the Strait anytime soon?

What investments does he have? All I've found is just some internet rumor about Barron that nobody has any evidence for.

 

[Steinbeck]

Oil has been hovering around $100 for weeks. There is no reason for gasoline to be going up $.30/gallon this week.

Profits are through the roof.

As I've said, I agree. It's just the usual opportunistic price gouging and has nothing to do with domestic supply and demand. Big Oil is only 'pro-American' when it's convenient for them, and have no problem screwing the country over whenever it suit them. They're just another pirate gang to me. There are plenty of small to mid-sized domestic companies out there to replace them if they don't like it when we put the country first. Trump can easily see to it they get needed financing, and they know it.

 

[Walt]

lol they've been attack us since 1979. They've killed hundred of Americans, threatened us constantly, threatened to nuke us, and threatened to assassinate our President. please, stop the crazy talk.

trump started a war with them. Iran has killed hundreds of Americans? Where?

 

[Walt]

It's just the usual opportunistic price gouging and has nothing to do with domestic supply and demand.

If "price gouging" is destroying demand, then there is only so many places to store oil before it needs to be sold. We can expect a huge drop in oil prices... If your claim is true.

 

[Walt]

Only 10% of the region's oil was shipped through the Strait.

About 20% of the world's oil comes from the Persian Gulf, with 15% of the world's oil needing to go through the Strait. That would be 75% of the region's oil, not 10%. There really are not that many pipelines that bypass the Strait.

They shipped via another port, and then there are other pipelines

Saudi Arabia has one pipeline that can ship about 5 million BPD when it is working. It could be used to ship 7 million if natural gas was no longer shipped, but the world needs natural gas more than oil. The UAE has another pipeline, which can ship about 1.5 million BPD when it is working. Iraq in theory has been given access to a pipeline through Kurdish territory, that may one day ship 250,000 BPD. Several countries are trying to ship oil by truck, which might add a few thousand BPD.

There is an extensive network of pipelines in the ME

With 20/20 hindsight, we wish there were more pipelines, but there is not much more. Part of the problem is the Strait of Hormuz was so easy, that no one saw the point in investing in a network of pipes. The other problem is the pipes would have to go over international borders among countries that are often very unfriendly to one another. Besides, pipelines are easy targets.

The other countries are shipping via other routes

Most of the Gulf oil is shutdown. It will takes months to restart it all. There are not magical "other routes."

It's nothing but win for the US and its allies.

As gasoline prices rise will you continue to believe that?

 

[Steinbeck]

About 20% of the world's oil comes from the Persian Gulf, with 15% of the world's oil needing to go through the Strait. That would be 75% of the region's oil, not 10%. There really are not that many pipelines that bypass the Strait.

No, it's about 10% of the world's supply goes through the Strait, and the Saudi oil made up about half of it. About 30% of the world's current supply, and about a third of it goes through the Strait. You want to pretend I said something different, then keep talking to yourself.

Saudi Arabia has one pipeline that can ship about 5 million BPD when it is working. It could be used to ship 7 million if natural gas was no longer shipped, but the world needs natural gas more than oil. The UAE has another pipeline, which can ship about 1.5 million BPD when it is working. Iraq in theory has been given access to a pipeline through Kurdish territory, that may one day ship 250,000 BPD. Several countries are trying to ship oil by truck, which might add a few thousand BPD.

lol you think there is only one pipeline. That's cute.

With 20/20 hindsight, we wish there were more pipelines, but there is not much more. Part of the problem is the Strait of Hormuz was so easy, that no one saw the point in investing in a network of pipes. The other problem is the pipes would have to go over international borders among countries that are often very unfriendly to one another. Besides, pipelines are easy targets.


Most of the Gulf oil is shutdown. It will takes months to restart it all. There are not magical "other routes."


As gasoline prices rise will you continue to believe that?

Rubbish.

 

[Steinbeck]

If "price gouging" is destroying demand, then there is only so many places to store oil before it needs to be sold. We can expect a huge drop in oil prices... If your claim is true.

Our local supply and demand is just fine, so yes, it's just price gouging. Doesn't matter what people who know nothing about the business want to get hysterical over.

 

[Steinbeck]

trump started a war with them. Iran has killed hundreds of Americans? Where?

You want to ignore the terrorist regimes actions since 1979. I understand, its all about Trump and nothing else with you. Keep talking to yourself. It makes you feel better about backing a criminal syndicate like Democrats to snivel and make up fantasies about Trump.

 

[Walt]

No, it's about 10% of the world's supply goes through the Strait, and the Saudi oil made up about half of it. About 30% of the world's current supply, and about a third of it goes through the Strait. You want to pretend I said something different, then keep talking to yourself.

In normal times, 21% of the world's oil supply goes through the Strait of Hormuz. Using all existing pipeline capacity(except for that needed for gas exports) would mean 16% of the world's oil supply goes through the Strait of Hormuz. That includes the Iranian pipeline, which might be blockaded by trump, so maybe less than that. It also assumes there is not much damage to the pipelines.

Saudi Arabia is a big producer, but not half. More like a third.

RIght now: Kuwait, Iraq, Qatar, Bahrain are barely producing anything. Saudi Arabia, and UAE have pipelines out, but those pipelines can only carry a fraction of their production. Iran has a pipeline and can in theory release oil through the Strait of Hormuz, but trump is threatening to blockade it.

If everything works out, then maybe we can have "only" a 10%, but more likely 15% shortage. Russia's invasion of Ukraine was only a 3% shortage for a short time new routes to China and India meant there was a 1% shortage, which in turn was replaced by more production from other sources. A 10-15% shortage is much, much worse.

https://www.economist.com/briefing/2026/04/30/the-crisis-in-oil-markets-will-get-bigger-before-it-goes-away

 

[Walt]

Our local supply and demand is just fine, so yes, it's just price gouging.

There is a worldwide market, so to get by only on local supply, we would have to shut our borders to oil imports and exports. That would make balancing of supply and demand much more difficult, and shutdown the trade we need to keep the economy going. trump is not going to stop exports, he is overjoyed with the huge amount of money going to oil exporters.

So there is a shortage of about 15% for the world. China and a few other countries are not going to bare any of the brunt of that shortage. So that means the rest of the world (including the USA) has to have 20% consumption destruction.

 

[Walt]

You want to ignore the terrorist regimes actions since 1979. I understand, its all about Trump and nothing else with you. Keep talking to yourself. It makes you feel better about backing a criminal syndicate like Democrats to snivel and make up fantasies about Trump.

You would think someone would notice hundreds of Americans being killed by Iran... Where did these Americans die?

 

[Hawkeye10]

I just heard that oil company profits have doubled because of the most idiotic of our idiotic wars:

6:30