Persian Gulf
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- Sources Of U.S. Oil Imports And U.S. Oil Companies' Role In The Mideast Maritime Reporter, Mar 1991 #48
Before the Organization of Petroleum Exporting Countries (OPEC) rose to power in the 1970s, U.S. oil companies had a major role in both the ownership and operation of oil production facilities in the Mideast. Since then, that role has diminished greatly as the governments of the region have assumed ownership of their national oil industries. Today, there are essentially no American- ownedproduction facilities in the area, although U.S. companies own or hold a partial interest in some Mideast refineries and petrochemical plants and several thousand Americans still work in the oil industry in the region.
The Saudi Arabian Oil Company (commonly called Saudi Aramco) is a corporation wholly owned by the Saudi Arabian government that is the sole producer of oil and natural gas in that nation.
Aramco was a partnership among Chevron, Exxon, Texaco and Mobil. It had its origins in an exploration agreement signed in 1933 by Standard Oil of California (or Socal—Chevron's predecessor company) and the Saudi government. After five years of futile efforts, exploratory drilling finally found commercial quantities of oil in 1938, but large-scale oil production commenced only in the post World War II period. From less than 20,000 barrels per day (b/d) before 1944, Saudi production rose to 500,000 b/d by 1950 and to 3.5 million b/d by 1970. In 1980, Saudi production peaked at 9.6 million b/d, following which it fell once more as high oil prices reduced international demand.
Beginning in 1973, Saudi Arabia bought out the ownership interests in Aramco of the American oil companies. The takeover was an amicable and orderly process that proceeded over an extended period. Beginning with the acquisition of a 25 percent share in 1973, Saudia Arabia's government increased its share to 60 percent in 1974 and eventually to 100 percent in 1980, when it paid for substantially all of Aramco's assets.
Today, of Saudi Aramco's 43,000 employees, only about 2,500 are Americans. The company also draws on the expertise of another 2,000 or so resident Americans on loan from U.S. oil companies.
Most of the Mideast oil industry assets formerly owned by U.S.
companies were transferred to the Mideast countries during the 1970s. While in some cases (Algeria, Iraq and Libya), the transfer was accomplished by expropriation, in most others (Saudia Arabia, Iran, Kuwait, Abu Dhabi and Qatar) it took the form of gradually increasing "participation" agreements that extended over a number of years.
American companies still own some assets in the area. For example, Texaco owns a refinery (and a 50-percent share in the crude oil production that supplies it) at Mina Saud in the Neutral Zone between Saudi Arabia and Kuwait. That facility, with a capacity of 50,000 b/d was closed down immediately after the Iraqi invasion and the 45 or so U.S. citizens who worked there were evacuated. Amerada Hess has a small share in some oil fields in Abu Dhabi, amounting to about 9,000 b/d. Conoco has an equity interest in oil fields in nearby Dubai which produce 110,000 t/d. Mobil has 50 percent ownership of a refinery at Yanbu in Saudi Arabia, with a capacity of 250,000 fc/d, as well as a petrochemical plant there. It also has a smaller share in other operations in Saudia Arabia, including a lubricating oil refining plant.
Exxon also owns shares of petrochemical plants in Saudia Arabia and Abu Dhabi. These operations employ several hundred Americans.
In summary, the role played in the Mideast by the U.S. oil industry as a whole and the value of the physical assets owned by U.S. oil companies today are both far smaller than they were 20 years ago.
Oil Supply Data Sources Of U.S. Oil Imports Before The Embargo Of Iraq/Kuwait Oil The Persian Gulf supplied 25.3 percent of the crude oil and petroleum products imported into the United States from January to July 1990: 8.2 percent from Iraq, 14.8 percent from Saudia Arabia, and 1.2 percent from Kuwait.
Small amounts also came from Oman, Qatar and the United Arab Emirates.
OPEC nations outside the Middle East—Venezuela, Nigeria and four others—provided 29 percent.
Canada, Mexico and other non-OPEC nations outside the Middle East supplied the remainder.
After The Embargo According to the most recent information available, Persian Gulf petroleum imports to the United States fell during the months immediately following the early August 1990 United Nations' embargo of Iraqi and Kuwaiti supplies. However, because total U.S. imports also fell, there was only about a 2 percent drop in the Persian Gulf share of that total.
The decline in Persian Gulf imports was gradual, in part because petroleum supplies that left Iraq and Kuwait before the embargo arrived at U.S. ports during August and September. Also, during this same period, Saudi Arabia, among other Persian Gulf countries, took steps to increase daily production.
Thus, Persian Gulf imports averaged 23.4 percent of total U.S.
imports during September and October 1990. Of this amount, 20.7 percent came from Saudia Arabia, 2.3 percent from Iraq, 0.2 percent from Kuwait and 0.2 percent from Oman.
In addition, OPEC nations outside the Middle East—Venezuela, Nigeria and four others—provided 29.9 percent in September and October. Canada, Mexico and other non-OPEC nations outside the Middle East supplied the remainder.
From January to July 1990, U.S.
petroleum imports, as a percent of domestic deliveries, reached 50 percent, the highest seven-month level in history. During September and October 1990, imports dropped to about 42 percent of domestic demand. The reasons for the decline include a drop in oil use because of higher world oil prices and a weaker economy plus a drawdown in inventories during a p e r i o d of r e d u c e d a v a i l a b i l i t y of supplies.
Japan and Western Europe also rely on the Persian Gulf for a substantial portion of their oil imports.
In 1989, Japan, which imports virtually all of its oil, imported a 4.4 percent of its oil from Iraq, 6.8 percent from Kuwait and 15.8 percent from Saudia Arabia. In 1989, Western Europe, which imports about 75 percent of its oil, imported 8.9 percent of its oil from Iraq, 4.7 percent from Kuwait, and 11 percent from Saudia Arabia.
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- Appropriations Conference Approves Use Of Foreign Ships For Ready Reserve Force Maritime Reporter, Nov 1991 #39
the purpose of enhancing our nation's sealift capability. They are too old and too slow and lack many of the required de- sign features. As the Persian Gulf war proved, the military needs ships that have 24-knot speed capability and are maintained in a reduced operating status to ensure quick deliverabil
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- M.A.N.-GHH Completes Floating Dock For Iran Maritime Reporter, Jan 1986 #8
construction yard of M.A.N.'s Machinery, Plant and Systems Division (M.A.N.-GHH) on the Weser River. The dock had been ordered by Iran for the Persian Gulf Shipyard Project (PGSP) at a contract price of approximately $18 million. Immediately after launching the dock, named Dolphin, was taken over
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- Gulf Copper To Provide Facility, Services For FPSO Conversion Maritime Reporter, Mar 1991 #27
rig berthing. Gulf Copper is very active in the current ship activation program for the Maritime Administration in support of U.S. activities in the Persian Gulf and was one of the first yards to activate two ships simultaneously. For free literature detailing the Gulf Copper's facilities and services
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- Irish Firm Orders Two Supply Vessels From Quality Equipment Maritime Reporter, Mar 1977 #17
presently provides marine services worldwide to the offshore industry, with principal operations in the Gulf of Mexico, the North Sea and Persian Gulf. It operates a fleet of approximately 70 vessels. Pott also has major interests in shipbuilding and inland waterways transportation. Jones
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- IMPROVING CURRENT STRATEGIC SEALIFT CAPABILITIES Maritime Reporter, Nov 1991 #64
a dramatic practical test. According to the Military Sealift Command, as of April 15, 1991, 10 million tons of cargo had been shipped to the Persian Gulf. The ships utilized for this massive operation, as shown in table 2, were chartered from U.S. and foreign-flag commercial operators or activated
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- War Showed Absolute Surge Requirement For More RO/ROs Maritime Reporter, Apr 1991 #54
Pentagon's chief shipping officer, Adm. Francis Donovan, Commander of the Navy's Military Sealift Command, said in his first postwar analysis of the Persian Gulf military crisis that the U.S. merchant marine is deficient by some 20 to 25 roll-on/roll-off (RO/RO) cargo vessels. He estimated that such
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- Cost Of Naval Operations In Persian Gulf Region Continues To Escalate Maritime Reporter, Dec 1990 #32
aircraft flight operations and additional personnel costs required by the call-up of Reserve units. The skyrocketing costs of U.S. operations in the Persian Gulf region has increased the likelihood t h a t Congress will be asked to approve a supplemental appropriations bill soon after it reconvenes. The
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- Intermarine USA Launches Second Navy Minehunter Maritime Reporter, May 1992 #72
the Navy for Reserve Affairs. The ship is a larger version of the successful Lerici Class Italian Minehunters that were so effective in the Persian Gulf mine clearance during Operation Desert Storm. The Heron is 188 feet long, 890 metric tons in weight and built entirely of flexible and resilient
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- Micronautics Offers Free Literature On Tide Predicting Software Maritime Reporter, Mar 1991 #70
both software products for two years, has expanded its coverage to South America. Operation Desert Storm has also prompted interest in the Persian Gulf. For free literature detailing the software of Micronautics, Circle 53 on Reader Service Car
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- New York Shipyard Receives Second Navy Drydocking Contract Maritime Reporter, Nov 1991 #54
Nitro (AE-23) recently entered the facility of New York Shipyard Corporation, Brooklyn, N.Y., for an overhaul. The ammunition ship had served in the Persian Gulf Desert Storm Operation and delivered ammunition to the battleship USS Wisconsin three days before the start of military action. Homeported
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- Robert Sanders To Yard Superintendent Maritime Reporter, Feb 15, 1980 #8
Submarine Building Program at General D y n a m i c s ' Quincy Yard, and as shipyard manager in charge of the Naval Shipyard at Bushier in the Persian Gulf. Before joining Jackson, Mr. Sanders was shipyard manager for the Braswell Yard in Boston, Mass. Jackson Engineering is undergoing a major
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November 2019 - Marine News page: 92VESSELS SAFE Boats Delivers 19th Boat to FDNY SAFE Boats International (SAFE) has delivered boats 17, 18 and 19 to the marine division of the New York Fire Department, all during the month of August. The three latest additions to the FDNY ? eet are 33’ full cabin boats, the most popular con? guration
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November 2019 - Marine News page: 81DOMESTIC DREDGING REPORT hopper or to discharge it bene? cially Mechanical Dredges Horses for Courses: through a ? oating pipeline to rebuild Mechanical dredges remove mate- Environmental & Marine coastlines and protect communities. rial by scooping it from the sea? oor Fisheries Regulations Self-prop
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November 2019 - Marine News page: 54BOATBUILDING From Estonia with Love Lyman-Morse Boatbuilding, the classic Maine boat designer and builder will build to Baltic Workboats design for the domestic workboat market. By Rick Eyerdam yman-Morse Boatbuilding, the classic Maine boat where Estonia is,” he said with a laugh. “Then you get over
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November 2019 - Marine News page: 18INSIGHTS built. A vessel built in the Gulf for service in Alaska has to Here and overseas, Fernstrum continues to drive trends in emerging markets. These include under- have a cooling system designed for both conditions. You water tidal turbines, AUV’s and ROV’s. Tell us a bit won’t pass sea trials in
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Sep/Oct 2019 - Maritime Logistics Professional page: 48Advertiser Index Page Company Website Phone# 9 Connecticut Port Authority www.CTPortAuthority.com (860) 577-5174 21 CPE Certifed Port Executive www.certifedportexecutive.com (902) 425-3980 1 Kalmar www.kalmarglobal.com Please visit us online C2 Nor thwest Seaport Alliance www.
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Sep/Oct 2019 - Maritime Logistics Professional page: 39LNG BUNKERS VT Halter Marine is con- structing (and has launched) a 4,000 cbm LNG articulated tug and barge unit with Qual- ity Liquefed Natural Gas Transport, LLC (Q-LNG) that is due for delivery in the frst quarter of 2020. Last year it reportedly executed a letter of intent to build a second 8
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Sep/Oct 2019 - Maritime Logistics Professional page: 25A g g A r w Strong demand propels robust exports – here and A across the big pond. A new feet of gas carriers is l being built to meet the logistics challenge. Credit: ABS Capacity Coming environmentally friendly than its Earlier this year, China’s Zhejiang Satellite Petrochemical en- predecessors (built
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Sep/Oct 2019 - Maritime Logistics Professional page: 24INSIGHTS THE ETHANE ERA EMERGES By Aditya Aggarwal he prospect of abundant and cheap ethane from U.S. shale and Naphtha (the alternative) remains at present levels, demand drilling is behind a surge in the number of projects investi- is expected to continue to quickly rise. T gating marine transport
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October 2019 - Maritime Reporter and Engineering News page: 64V VT Halter, Q-LNG Name First LNG ATB VESSELS Sharktech Autonomous Vessel Photo: VT Halter VT Halter Marine held a vessel naming ceremony for America’s ? rst offshore Lique? ed Natural Gas Articulated Tug and Barge unit. The Q-LNG 4000 (barge) and the Q-Ocean Services (tug) were of? cially named in
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October 2019 - Maritime Reporter and Engineering News page: 55HISTORY DESIGN EVOLUTION An Innovative Double-Ended Ferry Design for Texas. Credit: Bristol Harbor Group Inc. Credit: Bristol Harbor Group, Inc. to Create” and Marine Engineers (SNAME) conference in 1993, land, as its headquarters, as the original plan was to be- because no one was really building these
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October 2019 - Maritime Reporter and Engineering News page: 33HISTORY THE PANAMA CANAL fuel costs due to IMO2020 could prompt (as termed by the eminent geography be 400,000 TEUs in 2014. bound from the Gulf of Mexico to the 1.2 million TEUs inbound to the U.S. professor Jean-Paul Rodrigue) as a link Panama Canal Authority, now deriv- U.S. West Coast. to
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October 2019 - Maritime Reporter and Engineering News page: 29HISTORY THE PANAMA CANAL in the event of military activity, drove an ef- lantic. Transits by other well known, but long to be the ? rst ship through the widened canal, fort at Canal expansion, in the early 1940s, gone, U.S. carriers including Grace Line, sailing westwards. Five days later, in the
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October 2019 - Maritime Reporter and Engineering News page: 21escalation of the situation as around half of all seaborne crude oil in 2019 from 9m to 4m DWT. uct tankers will be employed to transport in the Persian Gulf would have a severe is transported through the Strait of Hor- In contrast to the disappointing de- the product to where it is needed. impact on
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October 2019 - Maritime Reporter and Engineering News page: 20tensions have led to disruptions to the tanker shipping in- BIMCO: Tanker Shipping, Fleet Growth dustry and all other ships trading in the Persian Gulf. Tensions have risen fol- lowing the expiry of waivers to the U.S. Our Core Purpose... is to Create. imposed Iran sanctions, as well as at- tacks
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October 2019 - Maritime Reporter and Engineering News page: 10I INSIGHTS: GOVERNMENT UPDATE Dennis L. Bryant Dennis Bryant is with Bryant’s Maritime Consulting, and a regular contributor to Maritime Reporter & Engineering News as well as online at MaritimeLogisticsProfessional.com. dennis.l.bryant@gmail.com Running on Reserves The time is long overdue for Congress
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September 2019 - Marine News page: 64ADVERTISER INDEX Page Company Website Phone# 11 ABS Americas www.eagle.org (281) 877-6774 37 Aero Tec Laboratories www.boatbladders.com (800) 526-5330 33 Ahead Sanitation www.aheadsanitationsystems.com (337) 330-4407 43 All American Marine www.AllAmericanMarine.com (360) 647-7602 C2
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September 2019 - Marine News page: 51VESSELS First Steel Cut for New Great Lakes Bulk Carrier more than 35 years. The new River-Class, self-unloading bulk carrier is believed to be the ? rst ship for U.S. Great Lakes service built on the Great Lakes since 1983. Mea- suring 639 feet in length (78 feet W / 45 feet H / 28,000 DWT), the ship
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September 2019 - Marine News page: 48MARINE COATINGS As the offshore industry recovers, choosing the right hull coating for those newly activated assets will be equally important. By Davide Ippolito, Hempel A/S he global offshore support vessel (OSV) market is still recovering from a protracted T slump, but thankfully momentum is
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September 2019 - Marine News page: 44DYNAMIC POSITIONING Credit: Beier Inegrated Systems The ABC’s of DP 101 Dynamic Positioning has been around for a while, it is evolving and it is here to stay. Here to sort it all out are two of industry’s more familiar stakeholders who also explain what might come next. By Joseph Keefe hen it comes to
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September 2019 - Marine News page: 38PROPULSION Drivers The pace at which new fuels (beyond heavy fuel oil LNG AS A FUEL [HFO] or marine gas oil [MGO]) are being adopted is pri- marily driven by two core factors: regulation and economics. Some forecasts expect 10% of On the regulatory front, the IMO’s decision to cap the sulfur in marine
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September 2019 - Marine News page: 20COLUMN OP/ED Offshore Wind: Set to Soar, Taking Offshore Support Industry With it. By Nicolette Nye Offshore energy development is BIWF is small compared to the much larger commercial opening a new front in the United scale projects that are on the horizon. Today, offshore wind States – the Atlantic
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September 2019 - Marine News page: 16emergency dockings, etc., or are their clients that also saw your work mix move more to the commer- plan months in advance for work? cial side of the equation. But, you still do a lot of government work, don’t you? What’s the key differ- Give us a sense of how that work evolves. Typically, the ence
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September 2019 - Marine News page: 14INSIGHTS Creed – “Customer before Company, Employee before Owner, Family before Self, and Safety Above All” – every day. Listen in this month as he weighs in on the compli- cated and competitive world of ship repair. One of the key strengths of your repair yard is its abil- ity to cater to a wide range of
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September 2019 - Marine News page: 6EDITOR’S NOTE “Change is the New Normal” As I assembled this particular edition of MarineNews, it occurred to me that no matter how staid or unchanging the domestic waterfront might sometimes seem, its actual nature couldn’t be more of a polar opposite. Over time, we write about the same topics many times