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UAE Bypass Pipeline Around Hormuz Delayed

A new crude oil pipeline from Abu Dhabi in the United Arab Emirates to carry up to 2.5 million barrels/day to the Gulf of Oman was scheduled to open in April. Now, the UAE says that pipeline operations will not…

By Paul Ausick
Published January 9, 2012, 11:10am ET · 1 min read

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A new crude oil pipeline from Abu Dhabi in the United Arab Emirates to carry up to 2.5 million barrels/day to the Gulf of Oman was scheduled to open in April. Now, the UAE says that pipeline operations will not begin until mid-2012l. The announcement threatens to force crude prices even higher.

Should Iran succeed in closing the Strait of Hormuz, through which about 15 million barrels/day of Middle East crude must travel, the new pipeline would help keep supplies moving, but certainly not take up the slack. Other pipelines in the region could transport another 2 million barrels/day once re-started.

Crude prices have not reacted to the news so far.

Contact [email protected] for any questions or corrections.

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Paul Ausick

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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