I read that about 600k barrels are transported one way, and about 850k barrels are transported the other way through the Suez canal every day.
Why does this happen? Surely this could be optimized in a way?
Different oil fields yield different types of crude oil. Most likely it’s not the same kind of oil going in both directions.
These numbers are actually the capacity of one oil tanker (and the smaller ones at that):
Panamax
With an oil tanker size of 500,000 barrels, these tankers sure command a measure of respect in this industry. They are regarded as the largest vessel that travels through the Panama Canal.
Aframax
Their weight ranges from 70,000 to 120,000 dead weight tons, with a capacity of 750,000 barrels of oil. In the Average Freight Rate Assessment tanker system (AFRA), they are the largest tankers. AFRA is a standard used for contract terms with well-defined ship capacity tanker explosion.
Suezmax
This is the largest tanker passing the Suez Canal with the range of deadweight tons from 120,000 to 200,000 and 1,000,000 barrels of oil.
Very large crude carrier (VLCC)
Their weight extends from 200,000 to 325,000 dead weight tons; used mainly in the Mediterranean Sea, the North Sea, and near West Africa, with an approximate capacity of 2,000,000 barrels of oil.
Ultra large crude carrier (ULCC)
It is also known as ULCC. The weight extends from 325,000 to 550,000 dead weight tons. Their capacity is up to 4,000,000 barrels of oil and they are used in the Persian Gulf to European and American to Asia.
Thanks for the answers. My numbers must be off, and I was not able to find any sources easily by googling. Is there somewhere I can find what kind of oil and in what quality goes in both directions? Is this public information?
Politics aside, wouldn’t it be much better to have pipelines from Saudi Arabia to a Mediterranean port?
Then pretty much any size of oil tanker can be loaded to go to Europe and North America.
Politics aside? Surely you jest - I can’t think of a higher value political hostage than an oil pipeline.
Dan
or a canal
could always use the canal.
Dan
Ooops, sorry - in such a hurry to be a smartass. Meant to say “use the pipeline”.
Dan
Pipe lines are efficient and relatively safe, and if we ignore the political and security issues of a pipeline to the Med from Saudi, from a supllier side you are potentially constrained on selling into the European market. If you stick with tankers you can sell anywhere and adapt to changing markets.
On the traffic going both ways are you sure it’s crude going back, it could be Product (Gasoline petrochemicals etc) going back down the canal.
Ignore? Check a map of the Middle East and get back to us with a route that is “relatively safe”.
Dan
Yes I know, the question was ‘politics aside’.
The EIA has an article on the Suez and oil transportation that might be helpful. 2017 data
Most oil transiting the Suez Canal was sent northbound (2.4 million b/d) toward European and North American markets, and the remainder was sent southbound (1.5 million b/d), mainly toward Asian markets. Oil exports from Persian Gulf countries (Saudi Arabia, Iraq, Kuwait, United Arab Emirates, Iran, [Oman=0), Qatar, and Bahrain) accounted for 84% of Suez Canal northbound oil flows. The largest importers of northbound oil flows through the Suez Canal in 2016 were European countries (78%) and the United States (14%). Oil exports from Russia accounted for the largest share of (17%) of Suez southbound oil flows, followed by Turkey (15%) and Netherlands (11%). North Africa (Algeria and made up 12% of the southbound flow. The largest importers of Suez southbound oil flows were Asian countries, with Singapore, China and India accounting for more than 50% of the total
I realize I ignored ‘politics aside’, but I get tired of zombie apocalypse questions, you know, “setting aside the fact that zombies don’t exist, don’t you think we could win if…”
Pipelines can be somewhat secure, of course, no one is arguing that, but pipelines connecting even friendly territories are politically fraught. See the Keystone XL.
Can’t ignore the politics.
Dan
You can certainly discuss the commercial, safety, and environmental considerations a pipe line may have, the ignore politics request just is a way of discussing other things other than the elephant in the room.
You’re right. I simply cannot shut my eyes and not see the freakin’ elephant.
Dan
Well it is a pretty big beast and yeah any commercial aspects get to politics quickly as well.
Thank you.
Dan
There is/was a pipeline, but then politics and time got involved. You can definitely overcome the deterioration (time) with enough money. Good luck with a long term agreement with the involved parties politically.
There’s also a pipeline that serves as an alternate to the Suez canal. But of course, a pipeline only goes one direction at a time.