Home » Posts tagged 'gulf of oman'

Tag Archives: gulf of oman

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

Iran Opens Export Terminal To Bypass World’s Biggest Oil Chokepoint

Iran Opens Export Terminal To Bypass World’s Biggest Oil Chokepoint

Iran says it has opened its first oil export terminal in the Gulf of Oman to allow Tehran to avoid using the strategic Strait of Hormuz shipping route that has long been a focus of regional tensions.

“Today, the first shipment of 100 tons of oil is loaded outside the Strait of Hormuz,” President Hassan Rohani said in a televised speech on July 22, calling it an “important step for Iran” that will “secure the continuation of our oil exports.”

The new terminal, located near the port city of Jask, will allow tankers headed into the Arabian Sea and beyond to avoid the Strait of Hormuz at the head of the Persian Gulf, through which one-fifth of world oil output passes.

Rohani said Iran aimed to export 1 million barrels per day of oil from the facility, which officials said will cost some $2 billion.

Oil Minister Zanganeh said that “82 percent of this project has been completed and so far more than $1.2 billion has been spent on this.”

Iran’s main oil export terminal is located at Kharg inside the narrow strait, which is patrolled by warships of its arch-foe, the United States.

There have been periodic confrontations between Iran’s Islamic Revolutionary Guards Corps (IRGC) and the U.S. military in the area.

Iran has often threatened to block the Strait of Hormuz if its crude exports were shut down by U.S. sanctions, which have heavily impacted Iranian energy exports.

Washington reimposed the sanctions more than three years ago when then-President Donald Trump withdrew the United States from the 2015 nuclear deal between Tehran and world powers.

Tehran and U.S. President Joe Biden’s administration have been in indirect talks in Vienna since April to try to revive the agreement, under which Iran agreed to curb its nuclear program in return for the lifting of most international sanctions.

Iran Conducts Annual War Drill To Thwart “Foreign Threats And Possible Invasion”

Adding to the regional instabilities in the Gulf of Oman, near the strategic Strait of Hormuz waterway, the Iranian military launched its annual three-day naval exercise on Thursday.

Iranian commander Admiral Habibollah Sardari, who is leading the drills, told Iranian state TV that the exercise would allow the military to thwart future “foreign threats and any possible invasion.”

Reuters notes the exercise is being conducted in the eastern side of the strait in the Gulf of Oman, a hot spot that was the site of last year’s tanker attacks.

The annual exercise, dubbed as Zolfaghar-99, will include naval, air, and ground forces. The drill will also include warships, submarines, fighter jets, and unmanned aerial systems.

The location of the exercise is situated near the world’s most important oil chokepoint, the Strait of Hormuz, which has large volumes of oil that flow through the strait via tankers, accounting for about 30% of all the world’s oil traded in a given year.

Tensions have risen between Tehran and Washington this summer, mostly after Iran’s paramilitary Revolutionary Guard blew up a replica aircraft carrier in the strait.

Then in August, the Iranian Navy briefly boarded a Liberian-flagged oil tanker. The area has also seen a rise in Iran threatening oil tankers and US warships.

Ahead of the war drill, we noted last week how Iran’s state-controlled Afkar News saying that “American Soil Is Now Within the Range of Iranian Bombs.” The report bragged about the damage that the Iranian military could inflict on the Western powers:

“By sending a military satellite into space, Iran now has shown that it can target all American territory; the Iranian parliament had previously warned [the US] that an electromagnetic nuclear attack on the United States would likely kill 90 percent of Americans.”

With Iran increasingly flouting its military strength ahead of the election, tensions between Tehran and Washington will continue to rise.

Instigators of a Persian Gulf Crisis

Instigators of a Persian Gulf Crisis

Photograph Source: Mehrnews – CC BY 4.0

Recent weeks have seen tensions between the United States and Iran soar, initially after a May 2019 incident in which four commercial vessels were struck in the Gulf of Oman (two Saudi oil tankers, one Norwegian and an Emirati ship), ebb thereafter and escalate yet again when a similar attack took place a month later on the Japanese Kokuka Courageous and Norwegian Front Altair tankers, also in the Gulf of Oman. Tellingly, when it appeared the war rhetoric had subsided after the first incident it quickly ratcheted up, and by several degrees, after the second, as if the May episode had failed to achieve its goal. President Trump’s apparent last-minute change of heart in calling off planned airstrikes when Iran downed a U.S. military surveillance drone last Thursday highlights the war footing Washington is on.

Both tanker assaults were allegedly at the hands of Iran, that is, according to Saudi King Salman, Crown Prince Muhammad bin Salman, U.S. Secretary of State Mike Pompeo and National Security Advisor John Bolton, albeit by unclear means and for dubious reasons.

It did not take long for doubts to surface as to why Iran would attack a Japanese tanker in the midst of Prime Minister Shinzo Abe’s visit to Tehran in an attempt to mediate between it and Washington. The suspect authenticity of a grainy video released by U.S. Central Command purportedly showing an Iranian patrol boat removing an unexploded limpet mine from the tanker also raised skepticism (the crew indicated they were hit by a flying objectnot a mine).

 …click on the above link to read the rest of the article…

The Drone Iran Shot Down Is A Quarter Billion Dollar Surveillance Monster

The Drone Iran Shot Down Is A Quarter Billion Dollar Surveillance Monster

The US drone that Iran shot down over the Strait of Hormuz last week is an RQ-4A Global Hawk, a $220 million surveillance monster in the sky, Wired reported. According to Iran, the Northrup Grumman-made Global Hawk – which is part of a multibillion-dollar program that dates back to 2001 – entered their air space and crashed into Iranian waters. The U.S. insists that the drone was flying in international airspace. 

The incident comes after the U.S. accused Iran of attacking two fuel tankers in the Gulf of Oman. The U.S. also claims that Iran attempted to shoot down another drone, an MQ-9 Reaper, and failed. The U.S. has also linked Iran to an attack on a Reaper drone in Yemen two weeks ago that caused the drone to crash. 

However, last week’s attack was on a far more expensive and technologically advanced drone, indicating a “more definite escalation” according to the report. 

Thomas Karako, director of the Missile Defense Project at the Center for Strategic and International Studies said: “There’s a lot going on here, and we’re probably only seeing some of it. This is a more expensive, higher-altitude, more capable, long-range intelligence surveillance reconnaissance craft. If they’re shooting down aircraft in international airspace over international waters, that’s likely to elicit some kind of measured reprisal.”

Karako says that details on the airspace won’t be released until the U.S. releases more about the drone’s flight path: “Whether they want to release that is more of a policy decision. But thus far CentCom is insistent that it was in international airspace.”

 …click on the above link to read the rest of the article…

The New Tanker War – Trump Pampers the US Shale Oil Industry

The New Tanker War – Trump Pampers the US Shale Oil Industry 

The situation in the Gulf of Oman is getting worse. After the attacks on two tankers, Khamenei said that he would never sit at the negotiating table with the US again.1)So Iran will continue its nuclear program till the Israeli strategists interpret its advancement as unacceptable and will have Iranian targets attacked. Up to this time a new tanker war is more likely than 30 years ago, of which Gefira warned already in autumn 2018. 2)Our forecasts proved correct. 

The attacks could indeed have been carried out by Iranians, and it is quite possible that they were a provocation of the Americans. Such a hypothesis is justified by the analysis of the history of the conflict between the Great Satan and Iran. In August 1953, MI6 and CIA overthrew democratically elected Prime Minister Mohammed Mossadeq for wanting to nationalize the British Anglo-Iranian Oil Company (now BP). The company earned huge sums, of which Iran received hardly anything. The CIA’s Shah Reza Pahlavi, installed in place of Mossadeq, guaranteed the US that Iran would not cross over to the Soviet Union. With the help of the Americans3)he founded the secret service SAVAK, which suppressed the population, tortured and committed numerous murders.4)The Americans were not bothered by this for decades, but today they are outraged by the violation of human rights in Iran: indeed by the violation of their interests in the region.

The nationalization of oil production did not take place under Pahlavi. Almost half of the proceeds continued to go to American and British companies. As in Afghanistan and other countries of the world, Americans have invented their future enemies themselves.

 …click on the above link to read the rest of the article…

Persian Gulf oil export peak after tanker attacks?

Persian Gulf oil export peak after tanker attacks?

Tankers holed and burning in the Gulf of Oman are not a good sign for future oil exports from the Persian Gulf.

Front_Altair_13Jun2019
Fig 1: Norway’s Front Altair burning with 75,000 tons of naphtha on board en route from Ruwais (UAE) to Kaohsiung (Taiwan)
The tankers Front Altair and Kokuka Courageous movements are shown in this still image taken from an animation obtained on Thursday from social media
Fig 2: Movements of Front Altair and Kokuka Courageous on 13 Jun 2019
https://in.reuters.com/article/mideast-tankers-facts/latest-on-suspected-attacks-on-tankers-in-gulf-of-oman-idINKCN1TE1H3

Oil exports from the Persian Gulf have been peaking in the last 3 years 2016-2018 at around 22.3 mb/d. That was before the US sanctions on Iran were tightened in the 1st half of 2019.

Persian-Gulf-oil-exports_1965-2018
Fig 3: Persian Gulf oil exports 1965-2018

Exports are defined here as the difference between oil production (crude oil, condensate and NGLs) and oil consumption with latest data taken from the BP Statistical Review published 11/6/2019.
https://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-energy.html

Let’s go through this country by country with a focus on the period since 2005 when global (conventional) crude oil production started to peak.

SaudiArabia_net-oil-exports_1965-2018

The drop in Saudi exports after 2005 happened in 2 phases: first, production decline until mid 2007 – which contributed to the oil price shock in 2008 and then secondly lower demand during the 2009 financial crisis. The warnings in Matt Simmons’ book “The coming Saudi oil shock and the world economy” has materialized to some extent without this being recognised by governments, the private sector, the media and the public at large.

30/10/2018 Saudi Update October 2018 http://crudeoilpeak.info/saudi-update-october-2018

5/7/2018 Saudi Arabia was supposed to pump almost 14 mb/d in 2018
http://crudeoilpeak.info/saudi-arabia-was-supposed-to-pump-almost-14-mbd-in-2018

Iraq_net-oil-exports_1965-2018

Sanctions imposed on Iraq after Desert Storm were replaced by an oil for food program started in 1995. It limited Iraq’s oil exports to around 2 mb/d. The objective of the 2003 Iraq war was remove this cap. It was only in 2011 that this export level was exceeded.

Iran_net-oil-exports_1965-2018
Fig 6: Iran net oil exports

 …click on the above link to read the rest of the article…

Olduvai IV: Courage
Click on image to read excerpts

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress