Twenty million barrels of oil passed through the Strait of Hormuz yesterday. Today the number may be zero.

[Melon]

16. We won't be hit just as hard.

We are independent on NG. We also produce Ethylene and Propylene in our manufacturing for cracking gas. China and Europe are primarily using oil to Naptha. We have a regional advantage to our own production.

I haven’t been a part of the specific conversation on the risk adder Iran costs on oil today. It used to be said $5-$10 of oil pricing was risk hedge and insurance due to Iran threats on the region. Oman is working with Saudi currently to build a pipeline bypassing the straight to export directly offshore of Oman just to bypass Iran. The project is many billions.

I agree that the price of oil rises across the globe. But there is a spread to the WTI that expands or contracts based upon supply availability. The US has a natural buffer due to our supply position. The spread is currently about $5 a barrel but used to be $10 when I was working in the space. It can move.

The initial attack is not really moving markets yet. Just a little. We will see Monday what happens and if Iran can realistically threaten the Strait.

If the current Iranian government is removed and a new government without extremism takes hold, their oil would conceptually be available to world markets as well as the risk premium coming off oil.