Waters of Black Gold: The Strait of Hormuz

By Imran Shamsunahar]
What distinguishes navies from that of other branches of the military is that their raison d’etre is often inherently economical in nature. Navies primarily exist to protects one’s sea lines of communications (SLOCs) in trade and natural resources, while threatening those of your enemy’s in times of war. As the classical seapower theorist Mahan would memorably argue, “the necessity of a navy springs from the existence of peaceful shipping and disappears with it.” In today’s globalized world, where 90 percent of global trade is still transported through merchant shipping, ensuring that freedom of navigation is protected on the world’s waters has become more vital than ever for ensuring global economic growth and regional stability.
This is especially relevant when discussing the stability of global energy markets. A 2014 report by the U.S. Energy Information Administration (EIA) entitled “World Oil Transit Chokepoints” noted that in 2013 total petroleum and other liquids production was 90.1 million barrels per day (bb/d), with over 63 percent of that amount transported through seaborne trade. Statistics from the United Nations Conference on Trade and Development noted that in 2013 oil tankers accounted for 30 percent of total worldwide shipping by deadweight tonnage. Any disruption to those transport routes, even briefly, would lead to “substantial increases in total energy costs and world energy prices.” These dangers of disruption are especially acute in so-called “maritime chokepoints,” described by the EIA as “narrow channels along widely used global sea routes.”
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Source: http://maritime-executive.com/