You can even see an Interactive Map Of the Egyptian Riots.
What will this new turmoil mean for the USA and the world? With the western-backed governments of Tunisia, Egypt, and possibly Saudi Arabia coming apart next. It’s worth mentioning that the Suez Canal ranks #3 on a the short-list of crucial oil shipping choke points . One often overlooked (by journalists) component of the area is the SUMED pipeline.
The 200-mile long SUMED Pipeline, or Suez-Mediterranean Pipeline provides an alternative to the Suez Canal for those cargos too large to transit the Canal. The pipeline moves crude oil northbound from the Red Sea to the Mediterranean Sea, and is owned by Arab Petroleum Pipeline Co., a joint venture between the Egyptian General Petroleum Corporation (EGPC), Saudi Aramco, Abu Dhabi’s ADNOC, and Kuwaiti companies. Transit through the pipeline declined from approximately 2.3 million bbl/d of crude oil in 2007 to 1.1 million bbl/d in 2009.Closure of the Suez Canal and the SUMED Pipeline would divert tankers around the southern tip of Africa, the Cape of Good Hope, adding 6,000 miles to transit.
This excess travel would, of course, add to the price of oil … but the disruption in the world markets of such a headline would likely raise prices at the pump and the grocery store. The mere mention of unrest in Egypt has sent Saudi stocks tumbling over 6%.
If foreign civil unrest was our only concern, the American middle class might have a fighting chance of evading these particular shock waves. Unfortunately, these types of massive upheavals provide perfect moments for opportunists to strike a double or even triple whammy.
Louis Pasteur said “Chance favors the prepared mind.” Ben Franklin said “By failing to prepare you are preparing to fail.” I’d like to know what you, dear reader, in the chance the US Dollar looses it’s reserve status, are doing to prepare. For myself and my family, I’m averaging into things I can get my hands on. Precious metals and equipment useful in surviving disasters both man made and natural.