Advertisements

What You Need to Know About the Attacks on Saudi Arabia

Today’s Energy Update
(Because Energy Fuels Our Lives)

Crude oil prices closed today up about 15%. They escalated throughout the day as it became increasingly obvious that the production outages in Saudi Arabia will likely continue for weeks, and as rhetoric between the U.S., Iran and Saudi continued to become more heated. How many weeks the Saudi outages will last is anyone’s guess.

You should expect prices to continue to rise until – and if – the situation calms down and we have hard information indicating Saudi production is being restored.

In case you missed my story at Forbes.com linked and excerpted below, this is the largest sudden outage of crude production in world history, even larger than the Arab Oil embargoes of the 1970s.

It’s a big deal.

Excerpt:

Here are a dozen things everyone should know about the past weekend’s strikes on a major Saudi oil refinery, and the likely fallout from them:

  • The Houthis, a rebel army fighting against Saudi-led interests in Yemen, claimed credit for launching the attacks on Saturday. However, the U.S. government now says it believes the assault was launched from Iran, and that it may have involved cruise missiles rather than drones.
  • The strikes centered on Saudi Arabia’s Abqaiq refinery. Abqaiq is the world’s largest oil refinery, processing about two-thirds of the total Saudi supply each day. Saudi Arabia is the world’s second-largest producer of crude oil behind the United States.
  • Several large Saudi oil fields were also attacked. Those attacks, along with the disruption of the Abqaiq refinery required the Saudi government to shut-in about half of its current production, or about 5.7 million barrels of oil per day.
  • According to the U.S. Energy Information Administration (EIA), that amounts to the single biggest sudden disruption on record, more than the loss of Kuwaiti and Iraqi supply during the Gulf War in August 1990, and the 1979 decrease in Iranian output following the Islamic Revolution.

Read the Rest Here

 

That is all.

Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.

Advertisements

6 thoughts on “What You Need to Know About the Attacks on Saudi Arabia

  1. jtthedestroyer - September 16, 2019

    “We are massively oversupplied,” said Christyan Malek, head of oil and gas research for Europe, Middle East and Africa at J.P. Morgan, adding it would take five months of a 5 million-bpd outage to take global crude supply levels back to a 40-year normal average.

    Industry sources have said Saudi Arabia will be able to restore supply within days.

    Saudis have a one week supply in transit and a one week supply in storage. Destination nations also have storage reserves. The severity of the event depends upon whether your oil position is long or short. There are two sides to every story.

  2. Gregg - September 16, 2019

    Thank God Obozo didn’t totally destroy America’s ability to produce petroleum trough fracking and other means.

    Thank God the fainting felon didn’t win Obozo’s third term and continue Obozo’s dismantling of America.

    Thank God Trump won and has greatly reduced the effects of the communist regulators at the EPA and elsewhere.

    Trump wins again for America by being proved right about making America energy independent and averting what would have been a major (perhaps recession inducing) crisis.

    Trump, and his business mind/background fixes and avoids problems and crisis, where the democrats always look to create and exploit crises (Rahm Emanuel never letting a crisis go to waste) for their political gain and never actually fix anything.

    1. Jimmy MacAfee - September 16, 2019

      Trump has a multidimensional appreciation of markets and economies, in addition to other things. But look at the Clown Car, full of people who want to end fracking, end oil exploration, shut down Anwar, end nuclear power, end everything but solar and wind – they’d even close dams if they got the chance!

      So you’re completely right; the other side of this is that the Dems are all saboteurs who would put us under the boot of OPEC once again.

  3. Jimmy MacAfee - September 16, 2019

    Maybe this will give the Venezuelans a reprieve from their Dutch Disease? For that to happen, oil prices would have to stay high, and they’d have to have reforms of their economy. One trick ponies don’t fare so well when there are herds of ponies who know the exact same trick. (But what do you expect of a former bus driver with the face of a warthog who mated with Saddam Hussein? He doesn’t even know one trick!, and he’s ugly all at the same time!)

    1. Cameron Howe - September 17, 2019

      I was wondering how Venezuela will factor into this as well.

  4. Justme Andmeonly - September 17, 2019

    We have our own oil and our own hemisphere. Get out of the ME and let Europe and the Muzzies have their fun. Let’s work on our own sphere of influence as Ronnie intended.

Comments are closed.

Scroll to top
%d bloggers like this: