Alternatives to the Strait of Hormuz

Dagobert L. Brito and Eytan Sheshinski

The Energy Journal, 1998, vol. 19, issue 2, 135-147

Abstract: In this paper we study the cost of adding additional capacity to transport oil from Saudi Arabia and Kuwait to the Red Sea. If this capacity is obtained by adding power to the existing pipelines, the cost would increase by approximately 14 cents per barrel, but would require large capital expenditures. If this capacity is obtained by using Drag Reduction Agents, the cost would increase by 25 to 65 cents per barrel with minor capital expenditures. Since Arabian oil is inframarginal, these increased costs should have no impact on the supply of oil.

Keywords: Oil Supply; Strait of Hormuz; oil pipelines; drag reduction agents (DRA) (search for similar items in EconPapers)
Date: 1998
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.5547/ISSN0195-6574-EJ-Vol19-No2-9 (text/html)

Related works:
Journal Article: Alternatives to the Strait of Hormuz (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:19:y:1998:i:2:p:135-147

DOI: 10.5547/ISSN0195-6574-EJ-Vol19-No2-9

Access Statistics for this article

More articles in The Energy Journal
Bibliographic data for series maintained by SAGE Publications ().