https://www.linkedin.com/feed/update/urn:li:activity:6578684554444365824/ :
Apart from the damage in the Abqaiq attack, the big question is how the US/Trump will respond? Whether this was launched by the Houthis or from Iraq like one attack in May, this is Iranian-made hardware attacking a major artery of the world economy, not just Saudi Arabia. It is an odd time for escalation, with Bolton's departure having been seen positively in Iran. This will definitely cast a pall over Macron efforts to open US-Iran talks.
It is not yet clear exactly what was damaged in the drone attack at Abqaiq (and the Khurais oilfield) -- there is redundancy built into the key facilities at Abqaiq, and some of the infrastructure which does not have redundancy is physically hardened against attack. Some of the dramatic fire scenes in video circulating on social media seems to be emergency flaring, after the fires were under control. So this could be a brief outage, but we do not know at this point.
Also underscores two points I've made for a long time 1) proliferation of precision guided munitions makes these facilities more vulnerable, 2) US Strategic Petroleum Reserve is still needed.
Saturday 14 September 2019
#Saudi Oil Production Cut in Half After Drone Attack from Yemen - Bloomberg
Saudi Oil Production Cut in Half After Drone Attack from Yemen - Bloomberg:
Saudi Arabia’s oil production was cut by half after a swarm of explosive drones struck at the heart of the kingdom’s oil industry and set the world’s biggest crude-processing plant ablaze.
Saudi Aramco has had to cut production by as much as 5 million barrels a day after the attack on the Abqaiq plant, according to a person familiar with the matter. The company expects to restart most of the oil operations “within days,” a person familiar said.
Iran-backed Houthi rebels in Yemen, who have launched several drone attacks on Saudi targets, claimed responsibility.
Saudi Arabia’s oil production was cut by half after a swarm of explosive drones struck at the heart of the kingdom’s oil industry and set the world’s biggest crude-processing plant ablaze.
Saudi Aramco has had to cut production by as much as 5 million barrels a day after the attack on the Abqaiq plant, according to a person familiar with the matter. The company expects to restart most of the oil operations “within days,” a person familiar said.
Iran-backed Houthi rebels in Yemen, who have launched several drone attacks on Saudi targets, claimed responsibility.
Attack on #Saudi Oil Plant is What Everyone Feared: Oil Strategy - Bloomberg
Attack on Saudi Oil Plant is What Everyone Feared: Oil Strategy - Bloomberg:
Middle East geopolitics have come back with a vengeance to hit the oil market. What everybody feared has happened. An attack has penetrated the defenses of Saudi Arabia’s massive Abqaiq oil processing facility, the heart of the kingdom’s oil production and export infrastructure, causing an unknown amount of damage. Crude prices will react and emergency stockpiles will be tapped.
Fires at the plant were brought under control within hours, but the flow of crude from Saudi Arabia, the world’s biggest exporter, will almost certainly be affected, although we don’t yet know by how much or for how long. Traders who have shrugged off tensions in the Middle East for months will respond to this attack when markets open on Monday.
The height of the price spike will depend on how much we know about the extent of the damage and how long it will take to repair. An absence of information will lead traders to assume the worst.
Middle East geopolitics have come back with a vengeance to hit the oil market. What everybody feared has happened. An attack has penetrated the defenses of Saudi Arabia’s massive Abqaiq oil processing facility, the heart of the kingdom’s oil production and export infrastructure, causing an unknown amount of damage. Crude prices will react and emergency stockpiles will be tapped.
Fires at the plant were brought under control within hours, but the flow of crude from Saudi Arabia, the world’s biggest exporter, will almost certainly be affected, although we don’t yet know by how much or for how long. Traders who have shrugged off tensions in the Middle East for months will respond to this attack when markets open on Monday.
The height of the price spike will depend on how much we know about the extent of the damage and how long it will take to repair. An absence of information will lead traders to assume the worst.
#Dubai Jobs and Bonuses: Best and Worst Revealed - Bloomberg
Dubai Jobs and Bonuses: Best and Worst Revealed - Bloomberg:
In July, the ruler of Dubai promised to reveal the country’s worst- and best-performing government-service providers. On Saturday, he carried out his pledge.
Sheikh Mohammed Bin Rashid Al Maktoum, acting in his capacity as United Arab Emirates prime minister, tweeted a list of the nation’s five worst and best centers. Managers at the worst will be immediately replaced, while teams at the best will get two-month bonuses.
It isn’t Sheikh Mohammed’s first attempt at improving government performance. In 2016, after receiving complaints about deteriorating services, he surprised workers at Dubai’s Land Department by walking into sparsely populated offices in the morning. It was followed by the dismissal of several top officials.
In July, the ruler of Dubai promised to reveal the country’s worst- and best-performing government-service providers. On Saturday, he carried out his pledge.
Sheikh Mohammed Bin Rashid Al Maktoum, acting in his capacity as United Arab Emirates prime minister, tweeted a list of the nation’s five worst and best centers. Managers at the worst will be immediately replaced, while teams at the best will get two-month bonuses.
It isn’t Sheikh Mohammed’s first attempt at improving government performance. In 2016, after receiving complaints about deteriorating services, he surprised workers at Dubai’s Land Department by walking into sparsely populated offices in the morning. It was followed by the dismissal of several top officials.
#Iran says it will adopt maximum crude output policy if U.S. lifts sanctions - Reuters
Iran says it will adopt maximum crude output policy if U.S. lifts sanctions - Reuters:
Iran will adopt a policy of maximum crude production if the United States lifts sanctions on the country’s oil industry, Iranian Oil Minister Bijan Zanganeh said on Saturday.
“Maximum production would be the Iranian Ministry of Petroleum’s policy in case (U.S.) sanctions are eased on Iran’s oil industry,” the ministry’s official news website SHANA quoted Zanganeh as saying.
Since exiting from Iran’s 2015 nuclear deal with world powers last year, U.S. President Donald Trump has reimposed sanctions on Iran. He has also introduced other limitations, including threats of sanctions against any country importing oil from Iran, causing a more than 80% drop in the OPEC member’s oil exports.
Iran will adopt a policy of maximum crude production if the United States lifts sanctions on the country’s oil industry, Iranian Oil Minister Bijan Zanganeh said on Saturday.
“Maximum production would be the Iranian Ministry of Petroleum’s policy in case (U.S.) sanctions are eased on Iran’s oil industry,” the ministry’s official news website SHANA quoted Zanganeh as saying.
Since exiting from Iran’s 2015 nuclear deal with world powers last year, U.S. President Donald Trump has reimposed sanctions on Iran. He has also introduced other limitations, including threats of sanctions against any country importing oil from Iran, causing a more than 80% drop in the OPEC member’s oil exports.
$100 Oil? Drone Strikes Halt Half Of #Saudi Crude Production | OilPrice.com
$100 Oil? Drone Strikes Halt Half Of Saudi Crude Production | OilPrice.com:
Half of Saudi Arabia's oil production has gone offline following a surprise drone strike.
Drones attacked Abqaiq facility in Saudi Arabia and the Khurais oil field run by Saudi Aramco early Saturday morning, the kingdom's interior ministry said, sparking a massive fire at a crude processing plant essential to global oil supplies.
The closure will impact nearly 5 million barrels of crude processing per day, affecting 5 percent of the world's daily oil production. And while Aramco is confident that it can recover quickly, if it can't, however, the world could face a production shortage of as much 150MM barrels per month. An outcome which could send oil prices into the triple digits.
Half of Saudi Arabia's oil production has gone offline following a surprise drone strike.
Drones attacked Abqaiq facility in Saudi Arabia and the Khurais oil field run by Saudi Aramco early Saturday morning, the kingdom's interior ministry said, sparking a massive fire at a crude processing plant essential to global oil supplies.
The closure will impact nearly 5 million barrels of crude processing per day, affecting 5 percent of the world's daily oil production. And while Aramco is confident that it can recover quickly, if it can't, however, the world could face a production shortage of as much 150MM barrels per month. An outcome which could send oil prices into the triple digits.
#Saudi Aramco Contains Fire at Oil Sites After #Yemen Drone Attack - Bloomberg
Saudi Aramco Contains Fire at Oil Sites After Yemen Drone Attack - Bloomberg:
Saudi Aramco contained fires at two of its facilities in the world’s largest oil-exporting region after attacks that Yemen’s Houthi rebels claimed responsibility for.
The facilities in Abqaiq and Khurais were attacked at 4 a.m. local time, state-run Saudi Press Agency reported, citing an unidentified interior ministry spokesman. It didn’t give further details. Most of the oil produced in Saudi Arabia is processed at Abqaiq before export or delivery to refineries.
The attacks were carried out with 10 drones and came after intelligence cooperation from people inside Saudi Arabia, rebel-run Saba news agency reported, citing Houthi spokesman Yahya Saree. “Our upcoming operations will expand and would be more painful as long as the Saudi regime continues its aggression and blockade” on Yemen, he said.
Saudi Aramco contained fires at two of its facilities in the world’s largest oil-exporting region after attacks that Yemen’s Houthi rebels claimed responsibility for.
The facilities in Abqaiq and Khurais were attacked at 4 a.m. local time, state-run Saudi Press Agency reported, citing an unidentified interior ministry spokesman. It didn’t give further details. Most of the oil produced in Saudi Arabia is processed at Abqaiq before export or delivery to refineries.
The attacks were carried out with 10 drones and came after intelligence cooperation from people inside Saudi Arabia, rebel-run Saba news agency reported, citing Houthi spokesman Yahya Saree. “Our upcoming operations will expand and would be more painful as long as the Saudi regime continues its aggression and blockade” on Yemen, he said.
#Iran signs $440 million deal with local firm to develop Gulf gas field - Reuters
Iran signs $440 million deal with local firm to develop Gulf gas field - Reuters:
Iran signed a $440 million contract on Saturday with local company Petropars to develop the Belal gas field in the Gulf, Iranian state television reported, saying the country’s vital energy sector was active despite U.S. sanctions.
“This contract and other upcoming contracts show that we are working under the sanctions. The sanctions have not stopped us and we are active,” Oil Minister Bijan Zanganeh said at the signing ceremony in remarks carried by state TV.
Under the deal signed with a subsidiary of the state-run National Iranian Oil Company (NIOC), Petropars is to produce 500 million cubic feet per day of gas, state TV said.
Iran signed a $440 million contract on Saturday with local company Petropars to develop the Belal gas field in the Gulf, Iranian state television reported, saying the country’s vital energy sector was active despite U.S. sanctions.
“This contract and other upcoming contracts show that we are working under the sanctions. The sanctions have not stopped us and we are active,” Oil Minister Bijan Zanganeh said at the signing ceremony in remarks carried by state TV.
Under the deal signed with a subsidiary of the state-run National Iranian Oil Company (NIOC), Petropars is to produce 500 million cubic feet per day of gas, state TV said.
Yemen's Houthis claim drone attacks on #Saudi Aramco plants - Masirah TV - Reuters
Yemen's Houthis claim drone attacks on Saudi Aramco plants - Masirah TV - Reuters:
Yemen’s Houthi group claimed responsibility for drone attacks on two Saudi Aramco plants in the kingdom’s Eastern Province on Saturday, the group’s military spokesman said on Al Masirah TV.
The broadcaster said the Houthis had deployed 10 drones against the sites in Abqaiq and Khurais, and the group pledged to widen the range of its attacks on Saudi Arabia, which leads a coalition fighting them in Yemen.
Yemen’s Houthi group claimed responsibility for drone attacks on two Saudi Aramco plants in the kingdom’s Eastern Province on Saturday, the group’s military spokesman said on Al Masirah TV.
The broadcaster said the Houthis had deployed 10 drones against the sites in Abqaiq and Khurais, and the group pledged to widen the range of its attacks on Saudi Arabia, which leads a coalition fighting them in Yemen.
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