Houthi Drone Strike Has Damaged Half of Saudi Oil Facilities

A Houthi Drone Strike has damaged half of Saudi Arabia’s oil capacity. Saudi Arabia says the fire a will be put out and repairs made within days.

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.

Five million barrels per day of crude production have been impacted after fires raged at the sites, one of them the world’s largest oil production facility, people with knowledge of the kingdom’s operations said. The latest OPEC figures from August 2019 put the total Saudi production at 9.8 million barrels per day.

Two Saudi Aramco plants (refineries) at the heart of the kingdom’s oil industry are on fire.

Abqaiq is 60 km (37 miles) southwest of Aramco’s Dhahran headquarters. The oil processing plant handles crude from the world’s largest conventional oilfield, the supergiant Ghawar, and for export to terminals Ras Tanura – the world’s biggest offshore oil loading facility – and Juaymah. It also pumps westwards across the kingdom to Red Sea export terminals.

Khurais, 190 km (118 miles) further southwest, contains the country’s second largest oilfield. Many Western employees of Aramco live in Abqaiq. The U.S. Embassy in Riyadh said it was unaware of any injuries to Americans from the attacks.

The Saudi-led coalition launched air strikes on Yemen’s northern Saada province, a Houthi stronghold.

2006 Prediction Made by Brian Wang

In 2006, Brian Wang of Nextbigfuture made a prediction of this event.

Prediction made in 2006: Successful terrorist attack on Saudi Oil Infrastructure, oil goes to over $10/gallon.

This prediction was in the wildcard predictions section near the bottom of 156 predictions that were publicly made on the nanotech-now website.

I now do not think the price impact of this event will be that high. However, the terrorist attack on Saudi oil was correct. The prediction has a date range which was not correct. My prediction in 2006 had an irrelevant date range.

This attack will not have that much impact on world oil supply. Saudi Arabia will put on the fires and get oil production restored quickly. There will be an impact of an increased risk premium on the price of oil. There will also be an increased cost to oil companies for increased security at key oil facilities.

SOURCES- CNN, Nanotech-now (predictions from the author Brian Wang.), Twitter
Written By Brian Wang, Nextbigfuture.com