Posted on 06/28/2012 4:49:41 AM PDT by shove_it
DUBAI (Reuters) - Saudi Arabia has reopened an old oil pipeline built by Iraq to bypass Gulf shipping lanes, giving Riyadh scope to export more of its crude from Red Sea terminals should Iran try to block the Strait of Hormuz, industry sources say.
The Iraqi Pipeline in Saudi Arabia (IPSA), laid across the kingdom in the 1980s after oil tankers were attacked in the Gulf by both sides during the Iran-Iraq war, has not carried Iraqi crude since Saddam Hussein invaded Kuwait in 1990.
Saudi Arabia confiscated the pipeline in 2001 to compensate for debts owed by Baghdad and has used it to transport gas to power plants in the west of the country in the last few years.
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(Excerpt) Read more at news.yahoo.com ...
Sounds like a little Prepping going on.
I thought the same thing.
If the Iranians close the straits, what makes the Saudi;s think they wouldn’t bomb the pipeline.
This will help alleviate uncertainty in the oil industry thus keeping prices low. All part of the Saudi plan to use oil as an economic weapon against Iran and Russia.
http://www.foreignpolicy.com/articles/2012/06/19/the_coming_oil_crash
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