Saudi Oil Output Cut in Half After Drones Strike Aramco Site

[240B]

Bloomberg
Javier Blas and Nayla Razzouk
September 14, 2019, 12:32 AM CDT

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, setting 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. Iran-backed Houthi rebels in Yemen, who have launched several drone attacks on Saudi targets, claimed responsibility.

(more)
https://www.bloomberg.com/news/articles/2019-09-14/saudi-aramco-contain-fires-at-facilities-attacked-by-drones?srnd=premium

Gas/Oil prices going up.

[DCPatriot]

And we can thank President Trump that the United States is a net exporter of oil today.     

[truth_seeker]

Who will be the first to blame Trump? blame America? blame capitalism? blame internal combustion engines? Blame lack of diversity?

[edpc]

Saudi Arabia spends a large percentage of GDP on military hardware, but their forces are inept, due to the nepotism and favoritism, within the leadership and royal family connections. Iran is using Yemeni rebels as proxies to test this method in the event of conflict with Israel or the US. There was way too much coordination and precision for it to be a group of rebels, acting alone.

[TomSea]

Iraq denies its territory was used to launch attack on Saudi oil facilities
Retuers, Baghdad Sunday, 15 September 2019

Iraq denied on Sunday that its territory had been used to carry out attacks on oil facilities in Saudi Arabia, referring to drone attacks on Saturday that targeted Aramco oil installations in the Kingdom's Eastern Province.

Read more at: https://english.alarabiya.net/en/News/middle-east/2019/09/15/Iraq-denies-its-territory-was-used-to-launch-attack-on-Saudi-oil-facilities.html

Very short article, I hope we've got some proof if tensions rise more.

[Elderberry]

Lawrence Person's BattleSwarm Blog 9/14/2019

Bad news for the world economy, good news for American oil producers:

    Saudi Arabia’s oil production has been severely disrupted by drone attacks on two major oil facilities run by state-owned company Aramco, reports say.

    Sources quoted by Reuters and WSJ said the strikes had reduced production by five million barrels a day – nearly half the kingdom’s output.

    The fires are now under control at both facilities, Saudi state media say.

    A spokesman for the Iran-aligned Houthi group in Yemen said it had deployed 10 drones in the attacks.

    The 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.

Snip.

    Aramco is not only the world’s biggest oil producer, it is also one of the world’s most profitable businesses.

    The Khurais oilfield produces about 1% of the world’s oil, and Abqaiq is the company’s largest facility – with the capacity to process 7% of the global supply. Even a brief or partial disruption could affect the company, and the oil supply, given their size.

More: https://www.battleswarmblog.com/?p=41924

[sneakypete]

While I really HATE seeing all that oil going up in smoke,I LOVE seeing any sort of disaster hitting the Sauds.

[catfish1957]

    Aramco is not only the world’s biggest oil producer, it is also one of the world’s most profitable businesses.

   

Was....   at least for awhile. 

[DCPatriot]

Was....   at least for awhile.

We interrupt this thread to bring you this public service announcement:

Don't forget to light a candle in front of the Baby Jesus' statue, @catfish1957   thanking God for sending us President Trump...otherwise, you'd be paying over $4 @ gallon this week.

Carry on......   

[XenaLee]

Ummm.... sanctions aren't gonna cut it.   Remember how certain nations went under the table, ignoring sanctions, and traded with Saddam way back when?   Well, they're doing the same thing now with Iran.

Just saw Trump say something really stupid about 'letting Iran be wealthy'.   Why?   Let them be dead.  They just tried to muck up 10% of the world's oil supply and are "pirating" oil tankers.   They are asking for it.   I say give it to them.   Good and hard.

The quickest past to peace in Yemen is continuing the pressure of sanctions until the Islamic Republic regime gives up their meddling or collapses.

[catfish1957]

We interrupt this thread to bring you this public service announcement:

Don't forget to light a candle in front of the Baby Jesus' statue, @catfish1957   thanking God for sending us President Trump...otherwise, you'd be paying over $4 @ gallon this week.

Carry on......   

Hate to tell you, but I am  retired from an oil company (32 years), and $4/gallon gas would have me dancing in the streets.

[XenaLee]

Hate to tell you, but I am  retired from an oil company (32 years), and $4/gallon gas would have me dancing in the streets.

With no care or empathy for your fellow countryman.... many of whom make their living via either delivering goods or in mobile service industries, not to mention already struggling middle class workers having to go into debt just to gas up their vehicles to get to work...?

Add to that the rising cost of food and other necessities that will result from higher gas prices (to cover the increased costs of producers to consumers).   People at poverty level incomes will be hurt the most.   But you'd be dancing?

Disclaimer:  I worked for oil companies most of my career too.

[corbe]

   A question I have, Sure we are exporting oil and gas stock now but aren't some of our refineries still dependent on Saudi crude and not capable of processing Permian Basin stock?

   I also worked for Big Oil most my life (20 yrs) and am invested by 401K's, Shell, Getty, Pennzoil, Texaco (now Chevron).

[edpc]

This facility in Abqaiq is in the northeastern part of Saudi Arabia. If rebels from Yemen were able to fly a drone all the way up there, across most of the peninsula, the Saudi Arabian air defense network really sucks. It wouldn’t surprise me at all, if these drones actually came from Iran, right across the gulf.

[corbe]

   I concur @edpc and the fact that we are still speculating at this point as to where the drones actually originated from is pure State Dept. BS, IMHO. 
   Let the Sauds clean their own damn house, for once.

[sneakypete]

   A question I have, Sure we are exporting oil and gas stock now but aren't some of our refineries still dependent on Saudi crude and not capable of processing Permian Basin stock?

   

@corbe

I am not sure "dependent" is the right word. Maybe "obligated by US Politicans with their hands in the robes of Saudi Royalty" might be more accurate.

Somebody tell the Bush Crime Family their phone is ringing.

[TomSea]

Iraq Denies Its Territory Was Used to Attack Saudi Oil Facilities
Basnews English 15/09/2019 - 14:52 Published in Iraq

ERBIL — The Iraqi government has refuted the reports claiming that its territory was used to attack two oil facilities in neighboring Saudi Arabia.

Earlier on Saturday, Abqaiq and Khurais oil plants in Saudi Arabia came under separate attacks which caused huge fire and disrupted oil production.

“Iraq denies the reports in the press and on social media that its territory was used to attack the oil facilities in Saudi Arabia with drones” reads a statement by the press office of Prime Minister Adil Abdul-Mahdi.

Read more at: http://www.basnews.com/index.php/en/news/iraq/546541

That's the big question, satellite pictures of help? Or could one evade that by firing at night or under clouds?

[catfish1957]

With no care or empathy for your fellow countryman.... many of whom make their living via either delivering goods or in mobile service industries, not to mention already struggling middle class workers having to go into debt just to gas up their vehicles to get to work...?

Add to that the rising cost of food and other necessities that will result from higher gas prices (to cover the increased costs of producers to consumers).   People at poverty level incomes will be hurt the most.   But you'd be dancing?

Disclaimer:  I worked for oil companies most of my career too.

Comment was hyperbolic in nature, ....so no I wouldn't be dancing in the streets.  OTOH, many of those so called countrymen buy into the AGW hoax, which is a direct threat to my investments.  Seems you didn't bring that up.

[XenaLee]

Comment was hyperbolic in nature, ....so no I wouldn't be dancing in the streets.  OTOH, many of those so called countrymen buy into the AGW hoax, which is a direct threat to my investments.  Seems you didn't bring that up.

Good to know.   I have many friends (& family) that would be financially hurt by $4-5/gallon gas prices.

I wasn't really even thinking about any hoax, so.....

[corbe]

   I'm gonna fill up my 18 gallon tank today @ $2.18, just as a precaution.

[LadyLiberty]

Several months ago Gatwick was shut down for a couple of days due to someone repeatedly flying a drone in Gatwick airspace.  They brought in some technology from Israel to handle the situation.  The Saudi's probably aren't open to anything that would make Israel look good.

[Victoria33]

I heard/or read, yesterday, it is likely Iranian's short range missiles were used.

[XenaLee]

I heard/or read, yesterday, it is likely Iranian's short range missiles were used.

An obvious act of war, whether missiles or drones were used.  Question is... what is anybody going to do about it?   They will only get bolder and more destructive if not slapped down hard now.

[corbe]

Problem is he fired his (alter ego), the Iran Slapper, last week.

[XenaLee]

Problem is he fired his (alter ego), the Iran Slapper, last week.

Hmmm.....good point.  Let's see now.....

Bolton fired on 9/10.   

Iranians attack Saudis four days later.   

Could it be...

nah!