Thread: Drone strikes knock out half of Saudi oil capacity, 5 million barrels a day

Drone strikes on key Saudi Arabian oil facilities, among the world's largest and most important energy production centers, have disrupted about half of the kingdom's oil capacity, or 5% of the daily global oil supply.Yemen's Houthi rebels on Saturday took responsibility for the attacks, saying 10 drones targeted state-owned Saudi Aramco oil facilities in Abqaiq and Khurais, according to the Houthi-run Al-Masirah news agency.

In a statement on Sunday, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said that 5.7 million barrels a day of crude oil and gas production have been affected. The latest OPEC figures from August 2019 put the total Saudi production at 9.8 million barrels per day.

The energy minister said the "company is currently working to recover the lost quantities" of oil and will update the public within the next two days. "These attacks are not only aimed at the vital installations of the kingdom, but also on the global oil supply and its security, and thus pose a threat to the global economy."

The Saudi interior ministry had confirmed that the drone attacks caused fires at the two facilities. In a statement posted on Twitter, the ministry said the fires were under control and that authorities were investigating.

"Abqaiq is perhaps the most critical facility in the world for oil supply. Oil prices will jump on this attack," Jason Bordoff, founding director of the Center on Global Energy Policy at Columbia University, said in a statement.

US Secretary of State Mike Pompeo pinned the attack directly on Iran, which backs the Houthi rebels. "Iran has now launched an unprecedented attack on the world's energy supply. There is no evidence the attacks came from Yemen," he said on Twitter.

The development comes as Saudi Aramco takes steps to go public in what could be the world's biggest IPO. Aramco attracted huge interest with its debut international bond sale in April. It commissioned an independent audit of the kingdom's oil reserves and has started publishing earnings. Over the past two weeks, the kingdom has replaced its energy minister and the chairman of Aramco.

Saudi Arabia, the world's largest oil exporter, has cut back on production of crude and other energy products as part of an OPEC effort to boost prices. Saudi Arabia produces approximately 10% of the total global supply of 100 million barrels per day.

The International Energy Agency, or IEA, said on Saturday it was monitoring the situation in Saudi Arabia. "We are in contact with Saudi authorities as well as major producer and consumer nations. For now, markets are well supplied with ample commercial stocks," it said on Twitter.

If the disruption in Saudi Arabia is prolonged, "sanctioned Iran supplies are another source of potential additional oil," Bordoff said. "But [US President Donald] Trump has already shown he is willing to pursue a maximum pressure campaign even when oil prices spike. If anything, the risk of tit-for-tat regional escalation that pushes oil prices even higher has gone up significantly."

US Energy Secretary Rick Perry "stands ready" to tap the country's Strategic Petroleum Reserve to steady oil markets if necessary, a department spokesperson said in a statement. The country's emergency oil supply — a series of storage tanks and underground caverns created after the oil crises of the 1970s -- holds 630 million barrels of crude, an Energy Department official said.

Oil prices fell on Friday, with Brent crude, the global price benchmark slipping 0.3% to close at $60.22 per barrel.

https://www.cnn.com/2019/09/14/busin...ack/index.html

Originally Posted by bsnub

"Abqaiq is perhaps the most critical facility in the world for oil supply.

Where I was born and spent the first 12 years of my life. Wow, cant even imagine that. Just a small American camp with a huge refinery when I was a kid.

...spent a night there in the late 90s: a large dump with an enormous refinery...

Other producers will be very happy for a while I would imagine.

Just a small price to pay,for Bombing the hell out of Yemen.

Originally Posted by Chico

Just a small price to pay,for Bombing the hell out of Yemen.

Have a look at the map.

Think it's Yemen?

Who supplies the drones?

Originally Posted by harrybarracuda

Have a look at the map.

Think it's Yemen?

Scary how long these drones can fly and the damage they can do. Why have they been not shot down?
When will a drone hit the west? Atomic reactors arround the world need a new defense system.

Just a little reminder for You.

https://www.hrw.org/world-report/2019

Originally Posted by VocalNeal

Who supplies the drones?

Who supplies the Saudis.?

Right under their nose ?

The military spokesman, Yahya Sarea, told al-Masirah TV, which is owned by the Houthi movement and is based in Beirut, that further attacks could be expected in the future.

He said Saturday's attack was one of the biggest operations the Houthi forces had undertaken inside Saudi Arabia and was carried out in "co-operation with the honourable people inside the kingdom".

Originally Posted by Chico

Just a small price to pay,for Bombing the hell out of Yemen.

That was Uncle Sugar directly.

Originally Posted by HermantheGerman

Right under their nose ?

I had a mate who worked in Eastern Saudi, and he reckoned that there were Shia enclaves virtually surrounded by the Saudi army in that area. Apparently, the House of Saud and the Wahabi clerics are thoroughly disliked, perhaps hated, by large parts, the majority, of the Saudi population. I've never been to the country and don't know, but the history of the US/UK coming along and putting a minority group in power, relatively recently, seems to support the claim.

Originally Posted by Bettyboo

but the history of the US/UK coming along and putting a minority group in power, relatively recently, seems to support the claim.

The US & UK have most definatley done their part in keeping them supplied with arms!

Originally Posted by HermantheGerman

When will a drone hit the west? Atomic reactors arround the world need a new defense system.

The containment shells around reactor cores will stop a drone.
The vulnerable points are the transmission line switchyards- the transformers can’t be bought at K Mart and take a long time to manufacture.

Originally Posted by docmartin

The containment shells around reactor cores will stop a drone.

The location of the control rod mechanisms could be a weak spot to target.

Originally Posted by docmartin

The vulnerable points are the transmission line switchyards- the transformers can’t be bought at K Mart and take a long time to manufacture.

And the heat exchangers and cooling systems. Blow them up and your reactor won't last long.

Originally Posted by Bettyboo

I had a mate who worked in Eastern Saudi, and he reckoned that there were Shia enclaves virtually surrounded by the Saudi army in that area. Apparently, the House of Saud and the Wahabi clerics are thoroughly disliked, perhaps hated, by large parts, the majority, of the Saudi population. I've never been to the country and don't know, but the history of the US/UK coming along and putting a minority group in power, relatively recently, seems to support the claim.

Nothing to do with the local Shi'a although doubtless they are pissing themselves senseless.

Originally Posted by Cujo

Pompeo is blaming Iran.
I doubt it was the Houthi rebels, I don't think they'd have the resources.
Certain entities are looking for reasons to attack Iran, this plays right into their hands if it can be pinned on Iran.
I thought the Saudis were pretty advanced militarily, why didn't they shoot one down.

They were launched from Southern Iraq, but by Iran, yes.

So of course they can then deny it.

I find it hard to believe with all the listening gear that the US weren't at least aware of the traffic. Then again, who benefits from a higher oil price?

Originally Posted by Neverna

The location of the control rod mechanisms could be a weak spot to target.

And the heat exchangers and cooling systems. Blow them up and your reactor won't last long.

For that case there are emergency cooling systems and its control specially protected.

Originally Posted by harrybarracuda

I find it hard to believe with all the listening gear that the US weren't at least aware of the traffic.

So you are claiming that if the US was not behind this they at least let it happen?

would anyone be completely stunned if it turns out that this was schemed up over whatsapp by MBS, kushner and netanyahu?

to be clear, i'm not saying it was or even likely was....but IMO it's certainly within the realm of possibility.

Originally Posted by bsnub

So you are claiming that if the US was not behind this they at least let it happen?

I didn't say the US were behind it you paranoid cockwomble.

What I said was that they should at least have seen the traffic, perhaps they thought it was a civil aircraft.

After all it wouldn't be the first time they've confused one of those for military traffic.

But, you know, an added benefit of a tighter oil market and all.....

Originally Posted by harrybarracuda

What I said was that they should at least have seen the traffic, perhaps they thought it was a civil aircraft.

Clearly you have no idea how civil aircraft flights originate in the civil world much less a war torn state like Iraq.

Originally Posted by harrybarracuda

After all it wouldn't be the first time they've confused one of those for military traffic.

Were they confused? Iran air 655 black boxes were never recovered. Most likely scooped up by the SEALS.

Originally Posted by harrybarracuda

But, you know, an added benefit of a tighter oil market and all.....

So it was the US then says arry with a wink and a nod.