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US EIA reminder: Strait of Hormuz world’s most important oil chokepoint; almost 20% of oil traded worldwide

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million-bbl/d Tapline to Lebanon. Use of the alternate routes would increase the cost of transportation. However, in 1996, the TPP was shut down as oil companies began shipping Alaskan crude along alternative routes. Other alternate routes could include the deactivated 1.65-million

Oil 297
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Opinion: Saudi Oil Strategy: Brilliant Or Suicide?

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Each producer, therefore, is incentivized to undercut other producers directly (price per barrel) or indirectly (absorbing shipping cost or delivery risk) to win sales in Asia (or displace incumbent suppliers in other major markets). National oil producers can and are shifting the cost of the lowered prices to other sectors of the economy.