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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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Use of the alternate routes would increase the cost of transportation. It is located between Yemen, Djibouti, and Eritrea, and connects the Red Sea with the Gulf of Aden and the Arabian Sea. Other alternate routes could include the deactivated 1.65-million million bbl/d Iraqi Pipeline across Saudi Arabia (IPSA), and the deactivated 0.5

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ONR developing offensive autonomous swarming capability for unmanned surface vehicles; adapting JPL’s CARACaS

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Not only can USVs take on dangerous missions, thus protecting the warfighter, but even multiple USVs are a fraction of the cost of a single large manned ship. The swarm demo announcement comes near the anniversary of the terrorist attack on USS Cole (DDG-67) off the coast of Yemen.

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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.