Fact Check: "20% of global oil and gas demand flows through the Strait of Hormuz"
What We Know
The Strait of Hormuz is a vital maritime chokepoint located between Oman and Iran, connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is recognized as one of the most critical oil transit routes globally. According to the U.S. Energy Information Administration (EIA), in 2024, oil flow through the Strait averaged 20 million barrels per day (b/d), which is equivalent to about 20% of global petroleum liquids consumption (EIA). This figure aligns with previous data, as in 2022, the strait accounted for approximately 21% of global petroleum liquids consumption (EIA). Furthermore, the EIA reported that in 2023, oil flows through the strait averaged 20.9 million b/d, reaffirming its significant role in global oil supply (EIA).
In addition to oil, the Strait of Hormuz is also crucial for liquefied natural gas (LNG) transport, with estimates indicating that around 20% of global LNG flows also transit through this strait (Reuters).
Analysis
The claim that "20% of global oil and gas demand flows through the Strait of Hormuz" is supported by multiple credible sources. The EIA, a reliable government agency, provides consistent data on oil transit through the strait, indicating that it has maintained a significant share of global oil and gas flows over the years. The figures from 2024 and previous years demonstrate the strait's critical role in the global energy market, particularly in the context of geopolitical tensions that could affect supply routes.
However, it is essential to consider the context in which these figures are presented. While the EIA and other sources provide statistical data, the dynamics of global oil and gas markets can be influenced by various factors, including geopolitical events, production cuts by OPEC+, and the development of alternative routes. For instance, while the Strait of Hormuz is a major transit route, some countries have developed pipelines that can bypass it, which may affect future transit volumes (EIA, EIA).
Despite these alternatives, the immediate data confirms that the strait remains a crucial artery for oil and gas transport, with a significant percentage of global demand still reliant on this route.
Conclusion
Verdict: True
The claim that 20% of global oil and gas demand flows through the Strait of Hormuz is substantiated by credible data from the EIA and corroborated by additional reports. The consistent figures across multiple years affirm the strait's importance as a critical chokepoint in the global energy supply chain. While alternative routes exist, they do not diminish the strait's current role in facilitating a substantial portion of the world's oil and gas demand.
