Around the Strait of Hormuz! Saudi Arabian Oil Company plans to expand "East-West Pipeline" energy breakthrough

Saudi Aramco CEO Nasser said on the 3rd that the company is evaluating the expansion of a crude oil pipeline that can bypass the Strait of Hormuz.

Since the United States and Israel launched air strikes on Iran on February 28, Iran has blocked the Strait of Hormuz, deeply impacting global oil transportation. Saudi Aramco CEO Amin Nasser said on the 3rd that as the world continues to face the largest energy supply shock in history, the company is evaluating the expansion of a crude oil pipeline that can bypass the Strait of Hormuz.

According to Reuters, before the outbreak of the Iran war, about 20% of the world's oil supply was transported through the Strait of Hormuz. Nasser pointed out that the impact of the Iran war goes far beyond the energy market itself. Rising transportation costs and fertilizer shortages are exacerbating inflationary pressures on the global economy.

Nasser claimed that so far, more than 130 attacks on oil tankers have been reported in relevant waters in the Middle East, most of which targeted very large crude oil carriers (VLCCs), causing shipping freight rates to soar more than 15 times compared with a year ago. Very large crude oil carriers can each carry about 2 million barrels of crude oil.

Nasser said Saudi Aramco is evaluating increasing crude oil export routes and the capacity of overseas oil storage facilities, including the possible expansion of the East-West Pipeline. The pipeline carries Saudi Arabian crude oil to export hubs on the Red Sea coast.

The east-west oil pipeline has been attacked many times during the US-Iran conflict and currently has a daily oil delivery capacity of up to 7 million barrels. Nasser said, "The fundamentals of energy demand remain strong, and the world cannot plan its future energy layout based solely on short-term market conditions. When the situation calls for it, we are ready to quickly increase production."