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  • bluecheese4u bluecheese4u Aug 3, 2013 9:26 AM Flag

    Report: Egypt unrest not affecting oil shipments through Suez Canal

    Report: Egypt unrest not affecting oil shipments through Suez Canal

    August 3, 2013 at 6:00 am by Laura Goldberg

    The 2011 revolution in Egypt and the unrest that has followed has not had a noticeable effect on oil and LNG shipments through the Suez Canal or Sumed Pipeline, an analysis released Friday by the U.S. Energy Information Administration concluded.

    Egypt plays a key role in international energy markets by operating the Suez Canal and Suez-Mediterranean, or Sumed, Pipeline.

    In 2012, about 7% of all seaborne traded oil and 13% of liquefied natural gas traded worldwide went through the Suez Canal, the agency said.

    Oil and LNG shipments traveling northbound from the Persian Gulf to Europe and North America and southbound from North Africa and countries along the Mediterranean Sea to Asia move through the Suez Canal. The report noted that the Sumed Pipeline is the only nearby alternative route to move crude oil northbound if loaded tankers are too large or ride too low in the water to travel through the Suez Canal.

    “Although external factors have to this point played a larger role in altering hydrocarbon flows through Egypt’s transit points, unrest in Egypt still presents a risk, and the Egyptian army continues to guard the Suez Canal,” the energy information agency wrote. “Closure of the Suez Canal and the Sumed Pipeline would necessitate diverting oil tankers around the southern tip of Africa, the Cape of Good Hope.

    That would add 2,700 miles to ship oil from Saudi Arabia to the United States, increasing both costs and shipping time, according to the U.S. Department of Transportation. Moreover, shipping around Africa would add 15 days of transit to Europe and 8-10 days to the United States, according to the International Energy Agency.”

    The report also noted that Egypt’s oil and natural gas production has largely been unaffected by the unrest.

    fuelfix

 
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