In 2003, the vast majority (about 90%) of oil exported from the Persian Gulf transited by tanker through the Strait of Hormuz , located between Oman and Iran. The Strait consists of 2-mile wide channels for inbound and outbound tanker traffic, as well as a 2-mile wide buffer zone. Oil flows through the Strait of Hormuz account for roughly two-fifths of all world traded oil, and closure of the Strait of Hormuz would require use of longer alternate routes at increased transportation costs. Such routes include the approximately 5-million-bbl/d-capacity East-West Pipeline across Saudi Arabia to the port of Yanbu, and the Abqaiq-Yanbu natural gas liquids line across Saudi Arabia to the Red Sea. The 15.0-15.5 million bbl/d or so of oil which transit the Strait of Hormuz goes both eastwards to Asia (especially Japan, China, and India) and westwards (via the Suez Canal, the Sumed pipeline, and around the Cape of Good Hope in South Africa) to Western Europe and the United States.
Oil heading westwards by tanker from the Persian Gulf towards the Suez Canal or Sumed pipeline must pass through the Bab al-Mandab. Located between Djibouti and Eritrea in Africa, and Yemen on the Arabian Peninsula, the Bab al-Mandab connects the Red Sea with the Gulf of Aden and the Arabian Sea. Any closure of the Bab al-Mandab could keep tankers from reaching the Suez Canal/Sumed Pipeline complex, diverting them around the southern tip of Africa. This would add greatly to transit time and cost, and effectively tie up spare tanker capacity. In December 1995, Yemen fought a brief battle with Eritrea over Greater Hanish Island, located just north of the Bab al-Mandab. The Bab al-Mandab could be bypassed by utilizing the East-West oil pipeline. However, southbound oil traffic would still be blocked. In addition, closure of the Bab al-Mandab would effectively block non-oil shipping from using the Suez Canal, except for limited trade within the Red Sea region.
After passing through the Bab al-Mandab, oil en route from the Persian Gulf to Europe must pass either through the Suez Canal or the Sumed Pipeline complex in Egypt. Both of these routes connect the Red Sea and Gulf of Suez with the Mediterranean Sea. Any closure of the Suez Canal and/or Sumed Pipeline would divert tankers around the southern tip of Africa (the Cape of Good Hope), adding greatly to transit time and effectively tying up tanker capacity.
Small amounts of oil from the Persian Gulf were exported via routes besides the Strait of Hormuz in 2003. This oil was exported mainly via pipeline from Iraqs Kirkuk oil region to the Turkish port of Ceyhan and by truck to Jordan.
U.S. gross oil imports from the Persian Gulf rose during 2003 to 2.5 million bbl/d (almost all of which was crude), from 2.3 million bbl/d in 2002. The vast majority of Persian Gulf oil imported by the United States came from Saudi Arabia (71%), with significant amounts also coming from Iraq (19%), Kuwait (9%), and small amounts (less than 1% total) from Qatar and the United Arab Emirates. Iraqi oil exports to the United States rose slightly in 2003, to 481,000 bbl/d, compared to 442,000 bbl/d in in 2002. Saudi exports rose from 1.55 million bbl/d in 2002 to 1.77 million bbl/d in 2003. Overall, the Persian Gulf accounted for about 22% of U.S. net oil imports, and 12% of U.S. oil demand, in 2003.
Western Europe (defined as European countries belonging to the Organization for Economic Cooperation and Development -- OECD) averaged 2.6 million bbl/d of oil imports from the Persian Gulf during 2003, an increase of about 0.2 million bbl/d from the same period in 2002. The largest share of Persian Gulf oil exports to Western Europe came from Saudi Arabia (52%), with significant amounts also coming from Iran (33%), Iraq (7%), and Kuwait (6%).
Japan averaged 4.2 million bbl/d of net oil imports from the Persian Gulf during 2003. Japans dependence on the Persian Gulf for its oil supplies increased sharply since the low point of 57% in 1988 to a high of 78% in 2003. About 30% of Japans Persian Gulf imports in 2003 came from Saudi Arabia, 29% from the United Arab Emirates, 17% from Iran, 12% from Kuwait, 11% from Qatar, and around 1% from Bahrain and Iraq combined. Japans oil imports from the Persian Gulf as a percentage of demand continued to rise to new highs, reaching 78% in 2003.