Saudis Reopen Pipeline Bypassing Strait of Hormuz -- Reuters

Energy

Published: June 28, 2012 12:52 pm

Although the tensions between Iran and the US and Europe have relaxed somewhat in the past couple of months, not everyone is taking for granted that a long-term solution to the Iranian development of nuclear technology will conclude peacefully. Iran’s threat to close the Strait of Hormuz prompted Oman to build an entirely new crude pipeline that delivers crude to the Gulf of Oman. And now, Saudi Arabia has reopened its Iraqi Pipeline in Saudi Arabia (IPSA), a crude pipeline that can transport 1.65 million barrel/day to the Red Sea and that hasn’t been used in more than 20 years.

Reuters reports exclusively that the Saudis have been reconditioning and testing the pipeline for several months in advance of the July 1st European embargo on Iranian oil. The Saudis do not want to be caught without an alternative in the event Iran closes the Strait, preventing Saudi crude from exiting the Persian Gulf.

The combined capacity of the Omani and Saudi pipelines is about 20% of the crude that currently passes daily through the Strait. Existing pipelines, whether operable or not, won’t replace the flow of crude through the Strait, but even 3 million barrels/day or so is better than nothing.

Paul Ausick

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.