Securing Oil Shipments
In an effort to enhance security of supply, Gulf governments are studying the development of oil pipelines that would bypass the Strait of Hormuz. About two-fifths of the world’s traded oil currently is shipped by tanker through this 34-mile-wide passage.If built, the pipelines could move as much as 6.5 million barrels of oil per day or about 40 percent of the amount currently shipped through the Strait. By 2010, construction of a first, smaller pipeline will be completed. Carrying 1.5 million barrels of oil per day, the pipelines will start in the UAE’s Habshan oil field and end in the Emirate of Fujairah, located outside the strait on the Gulf of Oman.
A Critical Partner in Regional Security
Maintaining peace and stability in the Arabian Gulf is critical to global energy supplies and markets. The UAE cooperates closely with US, United Nations, European Union and NATO forces in contributing to, and benefiting from, a common regional security umbrella. In specific regard to the United States, the UAE provides unprecedented port access and logistical assistance, hosts a major US Air Base, and participates in joint military training exercises with US forces. The UAE has a pending arms sale request for a US-supplied, comprehensive missile defense system that will provide enhanced security to the UAE, including its oil production and transportation facilities.Additional Background
The UAE’s proven oil reserves were 97.6 billion barrels as of January 2007. Abu Dhabi holds 92.2 billion barrels, followed by Dubai with 4 billion barrels, Sharjah with 1.5 billion barrels, and Ras al Khaimah with 500 million barrels.The United States imports minimal quantities of oil and gas from the UAE, given the geographic distances and complex shipping routes that separate the two nations. Instead, the UAE exports approximately 62 percent of its crude oil to Japan making it the UAE’s largest customer. Other Asian economies, which benefit from the same geographic proximity, consume the vast majority of the UAE’s remaining production. Gas exports are almost entirely to Japan, the world's largest buyer of liquefied gas, with the UAE supplying almost one-eighth of Japan's entire requirements.
Source : http://www.uae-embassy.org/uae/energy/global-oil-supply
