Yesterday, at the opening of ADIPEC in Abu Dhabi, ADNOC’s CEO Sultan Al Jaber told the world that energy security now comes down to getting the oil to the customer, not just producing it. He wants storage, redundancy and diversified routes to market. He noted that shipping and logistics have climbed from less than 5 percent of the cost of a barrel to more than 30 percent. All true. But he skipped one small detail about routes to market. They require ships.
Karl Miller, who has been annoyingly right about the Gulf all year, supplied that detail in a November 1 assessment of the Persian Gulf tanker fleet. If Al Jaber’s speech was the diagnosis, Miller’s report is the X-ray. It shows why a barrel now costs a third of its value just to move.
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