By Theodore Shoebat
Houthi rebels struck Saudi Arabia’s biggest oil field and brought about enough damage to halt half of the oil production for the royally ran country. According to the Houthi ran news agency, al-Masirah, they sent ten drones and did an efficient strike on the government owned Saudi Aramco oil facilities in Abqaiq and Khurais. One of the oil sites that were hit was one of the world’s largest oil production facilities. “Abqaiq is perhaps the most critical facility in the world for oil supply. Oil prices will jump on this attack,” Jason Bordoff, founding director of the Center on Global Energy Policy at Columbia University, said in a statement.
According to numbers calculated in August of 2019, Saudi Arabia’s oil production is at 9.8 million barrels per day. This attack reduced this by 5 million barrels a day, a huge attack with economically destabilizing effects . A source told CNN Business that Aramco “hopes to have that capacity restored within days.” According to the Saudi interior ministry the attacks came by drones but the the fires have been under control. However, the ramifications are pretty dire. “This is a big deal,” said Andrew Lipow, president of Lipow Oil Associates. “Fearing the worst, I expect that the market will open up $5 to $10 per barrel on Sunday evening.”
This event is already being projected as a damaging predicament for the future of Saudi’s oil leverage. According to a recent article from the Wall Street Journal:
Ever since the dual 1970s oil crises, energy security officials have fretted about a deliberate strike on one of the critical choke points of energy production and transport. Sea lanes such as the Strait of Hormuz usually feature in such speculation. The facility in question at Abqaiq is perhaps more critical and vulnerable. The Wall Street Journal reported that five million barrels a day of output, or some 5% of world supply, would be taken offline as a result.
Saudi Arabia invests billions into its military every year for a reason: to protect its oil from attacks, since one attack would reduce oil capacity and increase oil prices to very exasperated and moribund levels. For example, in 2006 there was an unsuccessful terrorist attack that involved vehicles planted with explosives. Even though the terrorist attack was not successful, its still increased the price of oil to more than $2 a barrel. This terrorist attack that just occurred means that oil is going to go up in price, and Saudi is going to invest a tremendous amount more of money into its security infrastructure to protect its pipelines and processing facilities. Violence affects the oil prices for every major oil producing country. Oil gangs in Nigeria, civil war in Libya, political unrest in Venezuela, all of these things have an effect on the price of oil.
Moreover, we have to keep in mind that the Houthis are backed by the Iranian government, which means that this attack is going to accelerate rhetoric against Iran. Senator Lindsey Graham just said that the US should strike Iran’s oil refineries:
“It is now time for the U.S. to put on the table an attack on Iranian oil refineries if they continue their provocations or increase nuclear enrichment”
Secretary Mike Pompeo is already blaming Iran:
We call on all nations to publicly and unequivocally condemn Iran’s attacks. The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression
— Secretary Pompeo (@SecPompeo) September 14, 2019
Bob McNally, president at Rapidan Energy Group, warned:
“If Abqaiq kills talks of easing sanctions and the discussion turns to retaliation and escalation, I think oil could easily trade higher by $10 or more”
Sanctions on Iran will more than likely intensify. This attack is to the excitement of people like John Bolton who, even though he has supposedly resigned, will use this as an opportunity to promote his militarist policies. Saudi Arabia will hugely boost its purchase of American military equipment and will use this attack as the reason.
The tensions between Iran and Saudi Arabia will eventually implode into horrific violence. God, through the prophet Isaiah, forewarned about massive violence against Arabia that will cause a major refugee crises. The Scripture says:
Go up, O Elam (Iran)!
Besiege, O Media!
All its sighing I have made to cease. (Isaiah 21:1-2)
The same chapter goes on to foretell about a major refugee crises within the Arabian peninsula:
The burden against Arabia.
In the forest in Arabia you will lodge,
O you traveling companies of Dedanites.
O inhabitants of the land of Tema,
Bring water to him who is thirsty;
With their bread they met him who fled.
For they fled from the swords, from the drawn sword,
From the bent bow, and from the distress of war. (Isaiah 21:13-15)
A torrent of horrendous suffering will strike Saudi Arabia, and it’ll be at the hands of the Iranians. The Book of Isaiah tells us that Arabia (Edom) will be set ablaze because of burning pitch (petroleum):
And the streams of Edom shall be turned to pitch,
and her soil into sulfur;
her land shall become burning pitch (Isaiah 34:9)
This attack on Saudi Arabia’s oil fields is obviously strategic. Iran is targeting the oil facilities. This is a presaging sign as to what will happen in the event of an Iranian-Arab war: the Persians will aim their missiles at the oil, and subsequent to major strikes shall be a terrifying conflagration that will scorch the earth in that land of Muhammad.