Shipping and logistics have risen from less than 5% to more than 30% of the cost of a barrel, ADNOC chief Sultan Al Jaber said at ADIPEC on November 2, according to his published remarks.
He linked the need to rethink energy security to disruption in the Strait of Hormuz. Reliable supply depends on delivering energy, not only producing it, he argued.
The percentages are his assessment, not a universal rate applicable to every route.
Market oil prices and delivered costs are different measures. Freight, insurance and longer routes can raise the buyer's total bill without an equivalent move in the oil benchmark.
