Posted on 07/03/2008 2:38:45 PM PDT by NRG1973
PARIS: An attack -- or even an attempted attack -- by Islamic extremists on Saudi Arabia's oil sector would have disastrous consequences on the world market and the price per barrel, analysts warn.
Of more than 700 people arrested in the course of the last six months in Saudi Arabia, dozens had been part of cells charged with preparing attacks against oil sites, according to authorities in Riyadh.
With the price per barrel rising constantly and the capacity to increase global production almost non-existent, apart from in Saudi Arabia, the world market has never been so vulnerable to an offensive by Jihadists in the kingdom, they said.
Michael Klare, head of the University of Massachusetts's peace and world security programme and author of the book "Resource Wars", said that even if an attack caused little damage, the impact would still be enormous.
"There would be a tremendous psychological effect because the market is already prepared to expect terrorist events like this. It would have an immediate effect on prices," he said.
"And if an attack actually damaged production or exploration, the effect would be even greater. The rise would be astronomical," he added.
Klare believes that a less significant attack would result in a price hike of no more than ten dollars a barrel.
"(But) if they managed to destroy a major refinery or a major loading facility and cut production that would have a dramatic impact. Prices would go to 200 dollars a barrel," he said.
(Excerpt) Read more at economictimes.indiatimes.com ...
As for me, I'd feel a whole lot better if we were able to produce more of our own oil , coal-to-liquids and oil shale right here in the USA.
Analysts are looking for any excuse to justify the $200 a barrel.
Dollar is up, oil goes up.
Dollar down oil goes up because of it.
Nigerian President burps, oil goes up.
That will take some years and a hugh investment, but what alternative does the country have?
You win today. Right on the money. This is speculator city right now.
They are squeezing it for all it’s worth.
“what alternative does the country have?”
Not funding wahhabism is the most obvious one. If it weren’t for our economy, they do deserve a taste of their own medicine
If you like $5/gal, Thank Congress for no Energy Plan.
Pray for W and Our Troops
ping
This is so tiresome. Instead of wringing our hands for forty years, how about we drill, build refineries, build nuclear plants, and dig clean coal?
It’s a sad state of affairs when gangs of river pirates in Nigeria or a tin pot dictator in South America can raise prices at our pumps.
I was referencing the USA.
As to Saudi, they have been fighting these radicals for decades, which they were before they gave them asylum in return for peace, but the truce hasn’t been perfect.
The price is simply too high. The producing nations and wholesalers have overshot the market...and the market WILL adjust.
More domestic drilling, more efficient vehicles and even electric vehicles...people moving closer to their work and driving less. The "emerging" economies of asia are also raising the costs and lowering the subsidies.
85mil bbl/day today...65mil bbl/day in 3 years.
The US consumes approx 25mil bbl/day currently...and I see less than 20mil bbl by then.
This will have enormous impact on the price of oil, but we can never go back.
The USA already has 8 million bpd domestic production. Not much less than Saudi or Russia. 12 million BPD are imported. Produce 12 million bpd more than now and be actually independent. Start more drilling and perhaps in a few years produce an additional 2 million bpd: compared to the 12 million bpd deficit it is not significant, and not significant at all now since no additional production will happen now. The price of oil will not be affected at all.
Price is going up every hour because this MIGHT happen or that MIGHT happen.
WTF-—skip the in between and just go to $300.00/bbl and $10.00 per gallon and then we MIGHT start drilling.
Ok then. The problem with Saudis is that you can’t control violent sects. If you support wahhabism, you can’t say “but don’t attack me,” once they grow, they’ll attack everyone.
Saudi rulers have very good reasons to fear internal challenges.
Sorry to say but I would welcome it. A long string of em...with “Made in Iran” all over it..
Hmmm...not good. The Saudis are pissed at AQ for bombing Riyadh, but fund every madrassa and Islamic rats’ nest outside of their country, but as soon as terrorists threaten the oilfields it’s off to prison with them (why not off with their heads? The Saudis are good at that...). Not to mention I bet Iran has its eyes and its missiles on those fields...the Ghawar field is the largest in the world; I’m sure Nutjob would *love* to control it.
I too would feel better if Congress would just let us drill in our own country and open some nuclear plants.
They have a problem. I would not advise the King, though.
Perhaps it takes the destruction of oil facilities in KSA to make us develop our own.
I don’t disagree that drilling would be best for this country.
But there is a bigger picture that doesn’t get covered.
This country is propped up with debt to allow for the welfare state. It started with FDR, and got a boost when we left the gold standard. Now we rely on foreigners to buy our debt, to keep it all going. If we became independent in the energy department, who would buy our debt? With a falling dollar?
Anyone? I don’t think so. So, you have the continued failed policy of keeping Americans poor for the sake of buying votes to keep politicians in office. Sad, isn’t it?
Congress has an energy plan. The democrat plan has been to place the US at the mercy of producer countries by compromising our ability to retrieve our own massive supplies.
Never fear the Dems have a plan, drive less, buy golf carts with Briggs and Stratton motors, ride bicycles, everything will be alll right. We are in big trouble.....
The rats want socialism/Marxism at any cost.
They have been using the enviro wackos and their endangered species BS as a pry bar to close off every conceivable avenue to drill for years. They have been very successful since the big non profits have billions in cash to buy high powered rat lawyers. They then sue everyone all the time and win enough to keep oil at $143.
That in a nutshell is basically what is going on.
Capitalism/Democracy are in a battle for survival in the US and so far we are losing.
They keep trying to placate both sides instead of just choosing one. This makes them look weak and the terror types keep trying to take them out.
Stand up to terrorists and watch them look for a weaker target every time. They(terrorists) are just like the Democrats they look for signs of weakness in their enemy and than exploit.
Capped wells are usually capped for good reason. If it costs more resource to produce resource than the resource produced then it isn't a resource. Cap it.
Capped wells are usually capped for good reason.
Do a little research and you will find out that thousands of wells in Oklahoma and Texas were capped because it wasn’t cost efficient to operate them at $10 a barrel. They, the owners, needed the price to be at $20 to $25 a barrel to make a profit. Now that oil is at this astronomical prices, they will be able to pull a hell of a profit. In conclusion, you’re wrong and I’m right.
Maybe so. OTOH, maybe not.
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