A drone attack on an oil supply in Saudi Arabia knocked out roughly 5% of the global energy supply and caused oil prices to increase. A lot of countries depend on fossil fuels to meet their energy demands, many countries do business with Saudi Arabia so an attack on Saudi Arabia has an effect on the global energy market. Drone attacks are likely going to happen again.
A satellite image released by the American government of an oil-processing facility in Abqaiq. Credit: U.S. Government/DigitalGlobe, via Associated Press
Secretary of State Mike Pompeo said Saturday "Iran has now launched an unprecedented attack on the world’s energy supply. There is no evidence the attacks came from Yemen." Iran called the accusation "lies." Trump, did not name Iran, saying "Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!"
The Financial Post reported how a spokesman for the Saudi-led military coalition battling Yemen's Houthi movement, Colonel Turki al-Malki said "The preliminary results show that the weapons are Iranian and we are currently working to determine the location ... The terrorist attack did not originate from Yemen as the Houthi militia claimed"
Over 17 weapons were directed at the oil facilities, some did not reach the targets. An investigation into the recovered weapons could show who made them. Yemen's Iran-allied Houthi rebels have claimed responsibility for the attack, some are uncertain if those rebels could carry out such an attack. Iran has been known to lie and deny the involvement in other attacks which they later admitted to. The Houthi has threatened more attacks that can reach anywhere in Saudi Arabia.
The disruption of 5.7 million barrels of crude oil a day is the greatest on record for world markets, just barely beating the last record of 5.6 million barrels of oil a day around the time of Iran's 1979 Islamic Revolution. Saudi Arabia has said it's stockpiles would keep global markets supplied while it rushes to repair damage at the Khurais oil field, but uncertainty exists if the damage can be repaired in time, so the supply could be disrupted for weeks or even months. Another attack could also further disrupt oil production for much longer.
Fossil fuels won't last forever, so the drone attack shows the need to develop more local infrastructure for renewable energy in countries that can sustainably grow crops for biofuels or other renewable energy, if there was more production with more countries selling renewable energy and biofuels that would decrease the likelihood of a terrorist attack disrupting the global energy markets as much, so if terrorists did manage to attack a biofuel production facility and there were lots of them then that would mean only a small reduction in global energy supply in the event of a terrorist act.
Why is the United States of America or Canada buying oil from Saudi Arabia when it would be cheaper overall to develop biofuels and replace fossil fuels? It will cost a lot of money to maintain the fossil fuel infrastructure, money that could be going to develop more biofuel infrastructure so cars and trucks could run on cleaner energy. Relying on importation of energy is risky, especially during times of war and when terrorists attacks are being conducted against global energy markets. Countries that can develop the infrastructure for renewable energy should, not all countries can grow lots of hemp biomass for renewable energy so those countries would benefit a lot by having cheaper renewable energy and not be at high risk.
A satellite image released by the American government of an oil-processing facility in Abqaiq. Credit: U.S. Government/DigitalGlobe, via Associated Press
Secretary of State Mike Pompeo said Saturday "Iran has now launched an unprecedented attack on the world’s energy supply. There is no evidence the attacks came from Yemen." Iran called the accusation "lies." Trump, did not name Iran, saying "Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!"
Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!
— Donald J. Trump (@realDonaldTrump) September 15, 2019
The Financial Post reported how a spokesman for the Saudi-led military coalition battling Yemen's Houthi movement, Colonel Turki al-Malki said "The preliminary results show that the weapons are Iranian and we are currently working to determine the location ... The terrorist attack did not originate from Yemen as the Houthi militia claimed"
Over 17 weapons were directed at the oil facilities, some did not reach the targets. An investigation into the recovered weapons could show who made them. Yemen's Iran-allied Houthi rebels have claimed responsibility for the attack, some are uncertain if those rebels could carry out such an attack. Iran has been known to lie and deny the involvement in other attacks which they later admitted to. The Houthi has threatened more attacks that can reach anywhere in Saudi Arabia.
The disruption of 5.7 million barrels of crude oil a day is the greatest on record for world markets, just barely beating the last record of 5.6 million barrels of oil a day around the time of Iran's 1979 Islamic Revolution. Saudi Arabia has said it's stockpiles would keep global markets supplied while it rushes to repair damage at the Khurais oil field, but uncertainty exists if the damage can be repaired in time, so the supply could be disrupted for weeks or even months. Another attack could also further disrupt oil production for much longer.
Fossil fuels won't last forever, so the drone attack shows the need to develop more local infrastructure for renewable energy in countries that can sustainably grow crops for biofuels or other renewable energy, if there was more production with more countries selling renewable energy and biofuels that would decrease the likelihood of a terrorist attack disrupting the global energy markets as much, so if terrorists did manage to attack a biofuel production facility and there were lots of them then that would mean only a small reduction in global energy supply in the event of a terrorist act.
Why is the United States of America or Canada buying oil from Saudi Arabia when it would be cheaper overall to develop biofuels and replace fossil fuels? It will cost a lot of money to maintain the fossil fuel infrastructure, money that could be going to develop more biofuel infrastructure so cars and trucks could run on cleaner energy. Relying on importation of energy is risky, especially during times of war and when terrorists attacks are being conducted against global energy markets. Countries that can develop the infrastructure for renewable energy should, not all countries can grow lots of hemp biomass for renewable energy so those countries would benefit a lot by having cheaper renewable energy and not be at high risk.
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