The Burmese Crude Oil Python

When thinking about the prognosis for tanker demand growth, the most immediate threat, second to the construction of a canal, is the development of overland transportation.  Pipeline projects are typically painstaking efforts that involve buy-in from inherently conflicted stakeholders.  Federal and local governments, citizens, regulators, oil companies and refiners must come together to balance transportation economics against political interests in a multi-billion dollar arena: not an easy task.  As such, these projects are extremely sensitive to the ebbs and flows not only of the broader economic health of ultimate consumer markets, but political wills that characterize oil trade, more often than many would prefer.  One project in particular, the Sino-Burma pipeline, raised eyebrows amongst the VLCC shipowning community when it threatened to significantly reduce voyage time between the Middle East and China by avoiding the Straits of Malacca.  A closer look at the project particulars reveals that this once-feared venture could end up being more help than hazard. Download here