This could be attractive given the huge profits that Gulf Arab states make on their oil and LNG. Then subtract Gulf Arab countries’ production costs of around US$5 a barrel — before taking account of capital costs, which are sunk. The ​Gulf Arab countries would then have a powerful incentive to ​build pipelines. Arab countries have been worried that higher prices would encourage consumers to switch to other forms of energy. If prices and profits were higher, it might be able to extract a bigger toll from the Arab countries.

Source: The Edge Markets April 02, 2026 10:17 UTC