Kuwaiti expert urges Gulf to redraw oil export routes

Yahya Al-Sumait, a former board member of Kuwait Petroleum Corporation and oil expert, has called for a strategic redrawing of oil export routes for Kuwait and other Gulf nations. He stated that current security dynamics necessitate abandoning traditional export patterns in favor of adaptable strategies that shield national economies from disruptions in vital maritime passages.

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The current security developments require the immediate abandonment of traditional patterns and adoption of flexible strategies that protect national economies from the fluctuations of critical maritime routes.

Al-Sumait highlighted the potential for trade among Gulf Cooperation Council (GCC) countries to double if exchange rate and currency differences are resolved. He advocated for establishing new export outlets and markets in Europe and Africa, moving beyond the current heavy reliance on Asian countries. This dependence on Asian markets, he noted, presents significant logistical and geopolitical challenges, particularly due to the need for tankers to transit the Strait of Hormuz.

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He affirmed the significance of creating new outlets and markets for oil and petroleum product exports to Europe and Africa, instead of limiting Kuwaiti energy markets to Asian countries.

To mitigate these risks, Al-Sumait stressed the urgent need to activate a regional oil pipeline network among GCC nations, a project delayed for nearly 50 years. He described this initiative as a crucial safety net for Gulf economies, enabling the transport of oil through a more secure land network to ports on the Arabian Sea and Indian Ocean, such as Duqm in Oman and Fujairah in the UAE. This bypasses the Strait of Hormuz, ensuring a stable and secure energy supply to global markets, unaffected by potential security disturbances.

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He emphasized the necessity of activating the oil pipeline network among the GCC countries, adding that this step has been delayed for almost 50 years.

The expert also pointed to the economic strain on regional countries due to ongoing tensions between the United States and Iran, which disrupt global supply chains and increase security spending. He warned that delaying economic integration and joint projects in energy, food security, and other sectors will escalate future risks for the region.

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This method ensures the continuous flow of energy and oil to global markets safely and stably, far removed from any security disturbances or threats that might surround the Strait of Hormuz.