Arab tankers move downstream

Journal Article · · Foreign Policy; (United States)

DOI:https://doi.org/10.2307/1147874· OSTI ID:7253375

Oppenheim, V H

A second oil embargo is expected to be even more effective than the one of 1973 because heavy Arab investment in tankers gives them greater control over the transportation as well as the supply and price of crude oil. The Organization of Petroleum Exporting Countries (OPEC) nations, having used their surplus capital to buy a tanker fleet, can route oil onto their own ships rather than those of competing companies. Faced with increasing vertical integration of the OPEC nations, the International Energy Authority (IEA) finds its emergency plans for oil sharing threatened. Actual size of the Arab tanker fleet is unknown because of joint ventures and the practice of sailing under flags of convenience, but Saudi Arabia is estimated to have enough ships to carry 50 percent of her oil and Arab control to be about 10 percent of the world tanker capacity. Military action in the event of another embargo is more likely if Arab tankers are present in world sea lanes. Involvement of the major international companies with OPEC allocations divides company loyalties between their suppliers and customers. Joint ventures between Arab oil companies and financial lending institutions are increasing, but could be somewhat balanced if legislation were passed requiring that oil for U.S. markets be transported by secure carriers. The use of surplus tankers as mobile storage units has been proposed as a means of stock-piling oil supplies against a future cutback. (DCK)

• OSTI ID: 7253375
• Journal Information: Foreign Policy; (United States), Journal Name: Foreign Policy; (United States) Vol. 23; ISSN FRPLA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000 -- Petroleum-- Legislation & Regulations
022000 -- Petroleum-- Transport
Handling
& Storage
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
AGREEMENTS
CAPITAL
COMPETITION
ENERGY SHORTAGES
ENERGY SOURCES
ENERGY STORAGE
ENERGY SUPPLIES
FOREIGN POLICY
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INTERNATIONAL AGREEMENTS
INTERNATIONAL COOPERATION
INTERNATIONAL ORGANIZATIONS
INVESTMENT
LEGISLATION
MARKET
OPEC
PETROLEUM
SHIPS
STORAGE
TANKER SHIPS
TRADE
TRANSPORT