The increasing tension between Iran, Israel and America has increased the concern of the entire world. Especially the turmoil in the Gulf countries regarding oil supply has intensified. Meanwhile, the United Arab Emirates (UAE) has taken a big and strategic step. The UAE is now building an oil pipeline network that will enable it to send oil to the world directly by sea without relying on the Strait of Hormuz. This decision of UAE is being considered as a preparation to avoid regional tension and possible oil crisis. It is believed that in the coming time, this project can have a big impact on the energy supply of the entire world.
What is UAE’s new secret plan?
UAE has decided to rapidly complete the construction of its big oil project West-East Pipeline. Crown Prince of Abu Dhabi Khalid bin Mohammed bin Zayed Al Nahyan has given instructions to fast-track this project. This pipeline will double the UAE’s oil export capacity. The biggest thing is that through this the oil will reach directly to Fujairah port, from where it will be supplied to other countries of the world through ships.
Why is the Strait of Hormuz so important?
The Strait of Hormuz is considered one of the most important oil routes in the world. About 20% of the world’s oil supply passes through this narrow sea route. But due to the increasing conflict between Iran and America-Israel, tension in this area has increased greatly. According to reports, the movement of ships here has been affected after Iran’s reaction. This is the reason why many Gulf countries are now looking for alternative routes.
Special pipeline already exists
The UAE already has the Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan-Fujairah Pipeline. It can deliver about 18 lakh barrels of oil directly to Fujairah daily. Now, after the construction of the new West-East Pipeline, UAE will be able to export more oil without depending on the Strait of Hormuz.
Concerns of other Gulf countries may increase
UAE and Saudi Arabia are the few Gulf countries that have the facility to send oil out of Hormuz. At the same time, countries like Kuwait, Iraq, Qatar and Bahrain are still largely dependent on this sea route. If regional tensions increase further, maintaining oil supply could become a big challenge for these countries.
May affect the world economy
Experts believe that if tension continues in the Strait of Hormuz for a long time, oil prices around the world may increase rapidly. Its effect can be seen on everything from petrol and diesel to inflation.
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
