LONDON: The strike on the heartland of Saudi Arabia’s oil industry, including damage to the world’s biggest petroleum-processing facility, has driven oil prices to their highest level in nearly four months.Here are some facts about the impact on oil supply and spare capacity:WHY IS IT SO DISRUPTIVE FOR GLOBAL OIL SUPPLIES?The attack on Saudi oil facilities on Saturday not only knocked out over half of the country’s production, it also removed almost all the spare capacity available to compensate for any major disruption in oil supplies worldwide.The attack cut 5.7 million barrels per day (bpd) of Saudi crude output, over 5 per cent of the world’s supply. But the attack also constrained Saudi Arabia’s ability to use the more than 2 million bpd of spare oil production capacity it held for emergencies.The kingdom has for years been the only major oil producing country that has kept significant spare capacity that it could start up quickly to compensate … [Read more...] about Saudi oil plant attacks: 5 key questions on the impact on supply
Saudi arabia how much oil is left
WHO is attacking oil tankers in the Gulf between Oman and Iran? So far, the answer is still a mystery. The US, of course, accuses Iran. Iran says it’s the US or its local allies Saudi Arabia and the United Arab Emirates. Magnetic mines are blamed for the damage, though there have been claims of torpedo use. Last month, four moored tankers were slightly damaged, though none seriously. This time the attacks were more damaging but apparently not lethal. A few cynics have even suggested Israel may be behind the tanker attack to provoke war between Iran and the United States – a key Israeli goal. Or maybe it’s the Saudis whose goal is similar. The Gulf is an ideal venue for false flag attacks. One thing appears certain. President Donald Trump and his coterie of neocon advisers have been pressing for a major conflict with Iran for months. The US is literally trying to strangle Iran economically and strategically. By now, Israel’s hard right wing dominates US Middle … [Read more...] about Will the real bombers please stand up!
By Neanda Salvaterra WSJ Mon., May 13, 2019 Conflict—whether it’s between regional rivals in the Persian Gulf or corporate foes in the Permian Basin—is seeping back into the oil business. Oil prices shot upward Monday after Saudi Arabia said two of its oil tankers came under attack Sunday near the Strait of Hormuz, the waterway in and out of the Persian Gulf -- a critical avenue for crude transportation. “The geopolitical risk premium increased over the weekend,” said consultancy Global Risk Management in a note. That became evident once markets opened in London this morning. Brent crude, the global oil benchmark, was up about 2% and West Texas Intermediate, the U.S. oil standard, was last up more than 1.5%. The attacks came days after the U.S. said it would heighten its military presence in the Persian Gulf to counter what it said is a growing threat from Iran. Saudi Arabia has pledged to help balance global oil markets as Washington … [Read more...] about Oil Prices Jump After Attack on Saudi Tankers—Energy Journal
REUTERS: New environmental regulations in Colorado have chilled investment in the state's oil and gas fields as companies grapple with how local officials will respond to a law giving them more power to restrict energy production.Colorado now ranks fifth among U.S. states in oil production at about 500,000 barrels per day (bpd), up from just 90,000 barrels in 2010.That boom, however, has come just as state politics has shifted to the left with an influx of urbanites who tend to oppose fossil-fuel development.The Colorado law is one sign of pushback to the oil boom in the United States, which last year became the world's leading producer, overtaking Saudi Arabia.New Mexico, the state ranked third in production volume, has also sought to rein in energy development with new rules targeting emissions from hydraulic fracturing. California, another top producer, is considering legislation that would sharply curb oil drilling. Many states have opposed Trump administration efforts to expand … [Read more...] about New Colorado environmental law stalls oil investment