Energy and Utility Management Consultants

Suez Canal Fears Arise

February 2011

 

The end of last week saw rumours of a closure to the Suez canal, one of the world's most important international waterways, amid the political protests currently underway in Egypt. Monday saw the closure of all of Egyptís ports, but the canalís convoy system was still operating normally, albeit with military escorts for part of the day.

The canal has historically been vital (although less so recently) to the supply of crude oil to the developed world, with some 2.2 million barrels per day transported this way. Although not a large portion of global daily consumption, if this amount of oil were to be regularly delayed for a sustained period, the markets would react accordingly and prices would be very likely to increase.
The main alternative route for ships travelling between Asia and Europe would be the far longer passage south of Africa around the Cape of Good Hope; thousands of additional nautical miles.

Further implications and increases could potentially be seen if the Sumed pipeline, which pumps oil from a terminal on the Gulf of Suez to the Mediterranean, were to close. Although by no means a certainty, if the loading and unloading of some 2.5m barrels of oil per day IS impacted, this would clearly see additional strain on the markets

Clifford Talbot Partnership are of course constantly monitoring the markets for our Utility Bureau Service and Procurement clients and are advising on best steps when it comes to all aspects of Energy Management; everything from Bill Validation to Tenant Billing, as well as all procurement needs and dozens of additional services. Get in touch today and see just how we can save you time and money when dealing with your utility needs.

 

 

 

 

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