Making a Short Story Long: The Construction of the Suez–Mediterranean Oil Pipeline in Egypt, 1967–1977

2004 ◽  
Vol 78 (1) ◽  
pp. 61-88
Author(s):  
Elie Podeh
Keyword(s):  
Crude Oil ◽  
Short Story ◽  
Suez Canal ◽  
Security Risks ◽  
Oil Pipeline ◽  
Oil Companies ◽  
Oil Market ◽  
The Mediterranean ◽  
Transportation Routes ◽  
Major Consideration

The idea to construct a pipeline from Suez to the Mediterranean (SUMED) was initially raised before the 1967 War. With the closure of the Suez Canal following the war, the pipeline could offer a less expensive route for Gulf oil. However, the pipeline was inaugurated only in 1977, following three wars and debilitating negotiations between Egypt and foreign institutions. This article analyzes the motives for the project as well as the reasons for the long delay in its implementation. Anticipated financial profits were a major consideration for both the governments concerned and the oil companies. Yet the project was launched only after the parties involved realized that its construction also entailed significant political advantages and after the security risks were eliminated. In recent years, SUMED and the Suez Canal have become major transportation routes for crude oil, transforming Egypt into an actor in the oil market.

scholarly journals STRATEGIC ROLE OF OIL PIPELINES IN EU ENERGY SUPPLY

2019 ◽  
Vol 68 (1) ◽  
pp. 33-41
Author(s):  
Gordana Sekulić ◽  
Dragan Kovačević ◽  
Damir Vrbić ◽  
Vladislav Veselica ◽  
Dominik Kovačević
Keyword(s):  
Czech Republic ◽  
Crude Oil ◽  
Energy Supply ◽  
The European Union ◽  
Oil Pipeline ◽  
Oil Companies ◽  
Oil Supply ◽  
Oil Pipelines ◽  
Central Eastern ◽  
And Storage

The oil pipelines have a strategic importance in the energy supply of the European Union (EU), especially given the fact that in the next two decades the crude oil will continue to be a dominant energy source, accounting for approx. 30% of the primary energy consumption, along with a reduction in the petroleum product consumption and growth in renewables. Europe has a widespread network of oil pipelines of approx. 22,5 thousand kilometres (without Russia), connecting refineries to import oil ports or to land-based crude oil sources. The refineries of the Central Eastern Europe are supplied mainly from the Druzhba oil pipeline. Recently, these refineries have diversified their crude oil supply routes and sources, by sea imports from the North Sea, the Middle East, Canada and others (Poland) or by the TAL – IKL oil pipelines (Czech Republic) and the JANAF oil pipeline (Hungary, Slovakia and the Czech Republic). Given the insufficient diversification of crude oil supply precisely of the Central Eastern European region, particularly the landlocked countries (and refineries respectively), the EU has envisaged, among the projects of common interests, also six connection oil pipelines with terminals. At the same time, they are the only pipelines planned to be constructed in Europe and financed by the oil companies’ funds. The oil pipeline and storage companies, as well as other oil companies, have a social responsibility as regards the energy supply, yet also a responsibility as regards their successful performance and development, thus investing considerable funds into modernisations, upgrades, protection, safety and security, etc. The oil pipeline companies hastily modify their strategies by expanding business and becoming more and more transport-storage-energy oriented, and by investing in the flow reversal of oil pipelines and connection pipelines, storage capacities, as well as in enhancement of efficiency and flexibility of oil pipeline and storage infrastructures.

A refusal to grant access to a grid within the provision of crude oil transfer services as an example of a prohibited abuse of a dominant position in the EU and Polish competition law

2018 ◽  
Vol 5 (2) ◽  
pp. 199 ◽  
Author(s):  
Wojciech Paweł SZYDŁO
Keyword(s):  
Crude Oil ◽  
Competition Law ◽  
Eu Law ◽  
The European Union ◽  
Dominant Position ◽  
Oil Companies ◽  
Effective Competition ◽  
Oil Pipelines ◽  
Transfer Services ◽  
The Eu

Aim: The paper discusses cases in which a refusal by an energy enterprise to connect other enterprises to the network is treated as a prohibited abuse of the enterprise's dominant position and, equally, will represent behavior prohibited by art. 12 of the Treaty on the Functioning of the European Union and by art. 9 par. 2 item 2 of the Competition and Consumer Protection Law as well as legal consequences of such refusal. It is important to pinpoint such cases since the EU sectoral regulation does not provide for obligating any undertakings which manage and operate oil pipelines to enter into contracts with other undertakings such as contracts on connecting into their network or contracts on providing crude oil transfer services. Conditions for accessing oil pipelines and selling their transfer capacities are determined by the owners of the networks: private oil companies in the countries across which the pipelines are routed. These conditions are not governed by the EU law.  Furthermore, the very obligation of connecting other entities to own network by energy undertakings operating in the oil transfer sector in Poland will only arise from generally applicable provisions of the Polish competition law.  Design / Research methods: The purpose of the paper has been reached by conducting a doctrinal analysis of relevant provisions of Polish and EU law and an analysis of guidelines issued by the EU governing bodies. Furthermore, the research included the functional analysis method which analyses how law works in practice. Conclusions / findings: The deliberations show that a refusal to access the network will be a manifestation of a prohibited abuse of a dominant position and will be a prohibited action always when the dominant's action is harmful in terms of the allocation effectiveness. It will be particularly harmful when delivery of goods or services objectively required for effective competition on a lower level market, a discriminatory refusal which leads to elimination of an effective competition on the consequent market, a refusal leading to unfair treatment of consumers and an unjustified refusal. Originality / value of the article: The paper discusses the prerequisites which trigger the obligation to connect entities to own network by energy undertakings operating in the oil transfer sector. The obligation has a material impact on the operations of the oil transmitting undertakings, in particular on those who dominate the market. The regulatory bodies in the competition sector may classify a refusal of access to own network by other enterprises as a prohibited abuse of the dominant position, exposing such undertakings to financial consequences.Implications of the research: The research results presented in the paper may be used in decisions issued by the President of the OCCP and in judgement of Polish civil courts and EU courts. This may cause a significant change in the approach to classifying prohibited practices to prohibited behavior which represent abuse of the dominant position. The deliberations may also prompt the Polish and EU legislator to continue works on the legislation.

Contango in Cushing? - Evidence on Financial-Physical Interactions in the U.S. Crude Oil Market

2012 ◽  
Author(s):  
Louis H. Ederington ◽  
Chitru S. Fernando ◽  
Kateryna V. Holland ◽  
Thomas K. Lee
Keyword(s):  
Crude Oil ◽  
Oil Market ◽  
Physical Interactions ◽  
The U.S

scholarly journals COVID-19 pandemic and the crude oil market risk: hedging options with non-energy financial innovations

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Afees A. Salisu ◽  
Kingsley Obiora
Keyword(s):  
Crude Oil ◽  
Structural Breaks ◽  
Exchange Traded Funds ◽  
Modeling Framework ◽  
Risk Hedging ◽  
Financial Innovations ◽  
Oil Market ◽  
Price Series ◽  
Hedging Effectiveness ◽  
Multivariate Volatility

AbstractThis study examines the hedging effectiveness of financial innovations against crude oil investment risks, both before and during the COVID-19 pandemic. We focus on the non-energy exchange traded funds (ETFs) as proxies for financial innovations given the potential positive correlation between energy variants and crude oil proxies. We employ a multivariate volatility modeling framework that accounts for important statistical features of the non-energy ETFs and oil price series in the computation of optimal weights and optimal hedging ratios. Results show evidence of hedging effectiveness for the financial innovations against oil market risks, with higher hedging performance observed during the pandemic. Overall, we show that sectoral financial innovations provide resilient investment options. Therefore, we propose that including the ETFs in an investment portfolio containing oil could improve risk-adjusted returns, especially in similar financial crisis as witnessed during the pandemic. In essence, our results are useful for investors in the global oil market seeking to maximize risk-adjusted returns when making investment decisions. Moreover, by exploring the role of structural breaks in the multivariate volatility framework, our attempts at establishing robustness for the results reveal that ignoring the same may lead to wrong conclusions about the hedging effectiveness.

Multivariate Markov-switching score-driven models: an application to the global crude oil market

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Szabolcs Blazsek ◽  
Alvaro Escribano ◽  
Adrian Licht
Keyword(s):  
Crude Oil ◽  
Moving Average ◽  
Local Level ◽  
Markov Switching ◽  
Impulse Response Functions ◽  
Common Trends ◽  
Vector Autoregressive ◽  
Oil Market ◽  
Long Run ◽  
Special Cases

Abstract A new class of multivariate nonlinear quasi-vector autoregressive (QVAR) models is introduced. It is a Markov switching score-driven model with stochastic seasonality for the multivariate t-distribution (MS-Seasonal-t-QVAR). As an extension, we allow for the possibility of having common-trends and nonlinear co-integration. Score-driven nonlinear updates of local level and seasonality are used, which are robust to outliers within each regime. We show that VAR integrated moving average (VARIMA) type filters are special cases of QVAR filters. Using exclusion, sign, and elasticity identification restrictions in MS-Seasonal-t-QVAR with common-trends, we provide short-run and long-run impulse response functions for the global crude oil market.

scholarly journals Geophysical investigations for stability and safety mitigation of regional crude-oil pipeline near abandoned coal mines

2021 ◽  
Vol 18 (1) ◽  
pp. 145-162
Author(s):  
B Butchibabu ◽  
Prosanta Kumar Khan ◽  
P C Jha
Keyword(s):  
High Resolution ◽  
Crude Oil ◽  
Seismic Refraction ◽  
High Resolution Imaging ◽  
Weak Zone ◽  
Near Surface ◽  
Oil Pipeline ◽  
Refraction Tomography ◽  
Geophysical Investigations ◽  
Resolution Imaging

Abstract This study aims for the protection of a crude-oil pipeline, buried at a shallow depth, against a probable environmental hazard and pilferage. Both surface and borehole geophysical techniques such as electrical resistivity tomography (ERT), ground penetrating radar (GPR), surface seismic refraction tomography (SRT), cross-hole seismic tomography (CST) and cross-hole seismic profiling (CSP) were used to map the vulnerable zones. Data were acquired using ERT, GPR and SRT along the pipeline for a length of 750 m, and across the pipeline for a length of 4096 m (over 16 profiles of ERT and SRT with a separation of 50 m) for high-resolution imaging of the near-surface features. Borehole techniques, based on six CSP and three CST, were carried out at potentially vulnerable locations up to a depth of 30 m to complement the surface mapping with high-resolution imaging of deeper features. The ERT results revealed the presence of voids or cavities below the pipeline. A major weak zone was identified at the central part of the study area extending significantly deep into the subsurface. CSP and CST results also confirmed the presence of weak zones below the pipeline. The integrated geophysical investigations helped to detect the old workings and a deformation zone in the overburden. These features near the pipeline produced instability leading to deformation in the overburden, and led to subsidence in close vicinity of the concerned area. The area for imminent subsidence, proposed based on the results of the present comprehensive geophysical investigations, was found critical for the pipeline.

scholarly journals Assessing Market Risk in BRICS and Oil Markets: An Application of Markov Switching and Vine Copula

2021 ◽  
Vol 9 (2) ◽  
pp. 30
Author(s):  
John Weirstrass Muteba Mwamba ◽  
Sutene Mwambetania Mwambi
Keyword(s):  
South Africa ◽  
Crude Oil ◽  
South African ◽  
Asset Allocation ◽  
Markov Switching ◽  
Tail Dependence ◽  
Lower Tail ◽  
Oil Market ◽  
Oil Markets ◽  
Vine Copula

This paper investigates the dynamic tail dependence risk between BRICS economies and the world energy market, in the context of the COVID-19 financial crisis of 2020, in order to determine optimal investment decisions based on risk metrics. For this purpose, we employ a combination of novel statistical techniques, including Vector Autoregressive (VAR), Markov-switching GJR-GARCH, and vine copula methods. Using a data set consisting of daily stock and world crude oil prices, we find evidence of a structure break in the volatility process, consisting of high and low persistence volatility processes, with a high persistence in the probabilities of transition between lower and higher volatility regimes, as well as the presence of leverage effects. Furthermore, our results based on the C-vine copula confirm the existence of two types of tail dependence: symmetric tail dependence between South Africa and China, South Africa and Russia, and South Africa and India, and asymmetric lower tail dependence between South Africa and Brazil, and South Africa and crude oil. For the purpose of diversification in these markets, we formulate an asset allocation problem using raw returns, MS GARCH returns, and C-vine and R-vine copula-based returns, and optimize it using a Particle Swarm optimization algorithm with a rebalancing strategy. The results demonstrate an inverse relationship between the risk contribution and asset allocation of South Africa and the crude oil market, supporting the existence of a lower tail dependence between them. This suggests that, when South African stocks are in distress, investors tend to shift their holdings in the oil market. Similar results are found between Russia and crude oil, as well as Brazil and crude oil. In the symmetric tail, South African asset allocation is found to have a well-diversified relationship with that of China, Russia, and India, suggesting that these three markets might be good investment destinations when things are not good in South Africa, and vice versa.

scholarly journals Data Analysis and Discussion on the Reliability of the Control Principle of a Sealed Crude Oil Pipeline

2021 ◽  
Vol 1927 (1) ◽  
pp. 012021
Author(s):  
Junjiang Liu ◽  
Liang Feng ◽  
Dake Yang ◽  
Xianghui Li
Keyword(s):  
Data Analysis ◽  
Crude Oil ◽  
Oil Pipeline ◽  
Control Principle
Sign in / Sign up

Export Citation Format

Share Document