Publication History

Around two- third of the world's oil trade (crude oil & refined products) moves through tankers and other carriers. Oil transported by sea flows through fixed routes. Also, in the recent years the growth of new oil and gas exporting countries has increased. Even then, the Gulf region remains an energy hub for the global consumers at large. However, when the importing countries undergo huge risks and investment, these imports have no longer remained safe. External threats like piracy, civil war or terrorism have threatened the secure transit of energy supplies. This paper investigates the importance of energy transits, the volume of energy traded through them and hydrocarbon as a lifeline for the world. The paper holds an opinion that the few routes in the world act as a basic infrastructure and its security is essential. However, as the global demand for energy moves up, the concerns for energy security of these tankers and carriers passing through these routes will become ever more critical. Thus, the insurance costs in the energy industry will be increasing, regardless of the volume traded. The past decade have seen serious rise in piracy and terroris