Strategic importance of crude oil and natural gas pipelines

Abstract

This paper argues that crude oil and natural gas pipelines create mutual interdependence among the various participants the interests of which would be deteriorated in the event of any kind of failure throughout the different chains of the operations of the pipelines under consideration. It is an obvious fact that 'security of supply' is crucially important for the uninterrupted flow of the continuation of the social life and the economies of energy importers (crude oil and natural gas) in one hand. On the other hand, this paper foregrounds that 'security of demand' is vitally important for the continuous flow of the social life and economies of energy exporters (crude oil and natural gas). It is the strategic importance of the crude oil and natural gas pipelines that brings the interests of energy exporters, importers, transit countries, international money lending institutions and operator companies and creates a cobweb of relations among different participants of the crude oil and natural gas pipelines.