Saudi Oil Output Cut in Half After Drones Strike

Saudi Oil Output Cut in Half After Drones Strike, by Robert Wenzel.

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, reports Bloomberg. …

Houthi rebels in Yemen, who have launched several drone attacks on Saudi targets, claimed responsibility. Facilities at Abqaiq and the nearby Khurais oil field were attacked at 4 a.m. local time, state-run Saudi Press Agency reported. The attacks were carried out with 10 drones. …

“For the oil market if not global economy, Abqaiq is the single most valuable piece of real estate in planet earth,” according to Bob McNally, head of Rapid Energy Group.

There was no immediate reaction of oil prices on global exchange since markets are closed for the weekend.

$100 oil coming up?

The attack was likely by Iran, either directly or by proxies in Yemen. Amazing what some ingenious fellows with ten drones and some explosives strapped on can do. Who needs mega-expensive military hardware any more?

More seriously, we are entering an era of domination by cheap missiles/drones. Anything that can be seen can be hit by a cheap drone with explosives, or by a fast missile. China and Russia now have carrier-killing ballistic missiles, and soon everyone will have missiles capable of finding and attacking any ship at great distances. Airplanes are harder to hit, especially if they are deploying countermeasures, but swarms of drones are far cheaper than an airplane so their reign may be over soon too. From this point of view, an aircraft carrier is just a bladder of aviation fuel wrapped around an arsenal of high explosive bombs. Naval vessels are either submarines or targets.