Around 45 years ago, Saudi Arabia made a long term strategic decision that is getting attention again today. The country built a massive 1,200-km oil pipeline connecting its oil fields in the Persian Gulf to the Red Sea.
The goal was simple: if the critical Strait of Hormuz ever became blocked due to war or regional conflict, Saudi Arabia would still have another route to export its oil to global markets.
This pipeline, known as the East West Pipeline, allows oil to travel across Saudi Arabia directly to the Red Sea port of Yanbu, bypassing one of the world’s most sensitive energy chokepoints.
Today, with rising tensions in the Middle East and concerns about potential disruptions in the Strait of Hormuz, this decades old infrastructure is once again being seen as a smart and forward-thinking strategy.
Nearly 20% of the world’s oil supply normally passes through Hormuz, so any disruption there could impact global energy markets. Thanks to this alternative route, Saudi Arabia has an important backup system to keep oil flowing to the world.
Sometimes the smartest strategies are the ones planned decades in advance. 🌍⛽
