• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 2 hours Australian Voters Reject 'Climate Change' Politicians
  • 6 hours Australia Election Summary: "This was the Climate Change Cult Election, and the Climate Change Cult Lost"
  • 10 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 1 hour Shale to be profitable in 2019!!!
  • 28 mins Global Warming Making The Rich Richer
  • 14 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 14 hours California Threatens Ban on ICE Cars
  • 14 hours IMO2020 To scrub or not to scrub
  • 14 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 15 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 10 hours Some Good News on Climate Change Maybe
  • 6 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 6 hours DUG Rockies: Plenty Of Promise, Despite The Politics
  • 3 hours Shell ‘to have commercial wind farms’ by early 2020s
The Politicization Of European Gas

The Politicization Of European Gas

The Politicization Of European Gas…

On The Cusp Of War: Why Iran Won’t Fold

On The Cusp Of War: Why Iran Won’t Fold

Iran’s Supreme Leader Ayatollah Khamenei…

Oman Announces Plans to Build World's Largest Oil Storage Facility

Iran has threatened to close the Straits of Hormuz on more than one occasion in response to the sanctions being imposed upon its economy by the US and EU. Over a third of all sea-borne oil is shipped through the Straits, and any disruption to that flow could seriously affect oil prices.

As insurance against this event, and the potential disruption to supply that it could create, the UAE has already built a bypass pipeline across the desert to the Gulf of Oman, and Saudi Arabia has increased the capacity of its Red Sea ports so that it can export more oil from there. Now Oman is devising its own strategy; building the world’s largest crude oil storage facility.

The facility will be built well outside the Straits of Hormuz near to Duqm, and have a capacity of nearly 200 million barrels of oil, far larger than any other facility of its kind in the world. The storage capacity at Cushing in the US has a capacity of just 62 million barrels.

A government source explained that, “Duqm is away from the Strait of Hormuz and if a conflict occurs there the storage will have enough oil to last a while to keep supplies going.”

Related Article: Smash the Rally in Oil

Before they make any decisions Oman wants to check that there is still enough global demand to deserve such a storage complex.

Nasser Al Jashmi, the chairman of the Oman Oil Company (OOC), told Reuters that the “We have appointed an advisor to carry out a marketing study for the project.”

Abu Dhabi’s International Petroleum Investment Company (IPIC) also announced earlier this year that it had plans to develop a 230,000 barrel a day oil refinery in Duqm.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News