Posted on 09/16/2019 3:01:32 PM PDT by bananaman22
Saudi Arabia’s disrupted oil production may last longer than originally thought, Amrita Sen, chief oil analyst at Energy Aspects Ltd., told Bloomberg on Monday, with full resumption of oil production perhaps not returning for weeks—or even months.
Saudi Arabia, too, is holding a more reserved position that initially thought, believing now that less than half the capacity at the Abqaiq processing plant can be restored quickly, according to Bloomberg sources that spoke on condition of anonymity. One of the longer lead-time items of the restoration are Abqaiq’s stabilization towers that separates out the dissolved gas from the crude oil—a distillation process that sweetens sour crude, if you will.
(Excerpt) Read more at oilprice.com ...
Yeah sure.
What do they have mafia unions working on it?
Slower “recovery” means higher sustained prices.
Give the high quantities of crude H2S directly to the mullahs in retribution.
Lol. Careful buying futures. The same was said when Saddam blew 700 Kuwaiti wells in ‘91. Pundits said it would take 3-5 years. They were out in 7 months.
Keyword here: Money. It’s how amazing things get done.
This facility has as much machinery and stainless pipe to build 10 aircraft carriers, at least.
I’m surprised they were ever talking about days to restore. It was obviously not engineers making that prediction.
Months easy.
And if 5 such facilities were hit in the future, it would be years to restore. There would very quickly be a shortage of material. And manpower with the skills.
Well, if they give back the oilfields to the folks they took them from, perhaps they could be brought back online quicker.
Prez says we have enough American produced oil for America.
The barrel price of oil was up nearly $8 at one time today only to finish the day 20 cents lower than yesterday. Trump’s calm approach seems to have calmed the markets.
I just learned from NBC Nightly news that if average temperature in Alaska increases from 30 to 31 degrees it has increased by 1/30th.
If average temperature in the lower 48 increases from 60 to 61 it has increased by 1/60th.
Therefore the temperature in Alaska is increasing twice the rate of temperature increases down here.
Mariner, you missed your calling: “Doomsayer”.
The rational fact is, Aramco has refineries all over the World and they will use them to keep their production where it has been. Put off some scheduled maintenance here, accelerate some new construction there, and before you know it, production will be greater than ever.
slowing down repairs for cash flow, as if they needed any.
And people wonder why the youngsters are attracted to the Democrats.
I really dont understand what you are trying to communicate with that sentence. Oil is up big from before the incident. Yes it had spiked higher likely due to margin calls on the shorts. It came off the highs BUT Cl has screwed over a bunch of accounts who were short .
It is nowhere near where it was at the close on Friday
Yeah well, gasoline has jumped about thirty cents per gallon today in my neck of the woods
NBC forgot about absolute zero (their IQ.) Add 459.67 to those denominators.
“The rational fact is, Aramco has refineries all over the World and they will use them to keep their production where it has been. Put off some scheduled maintenance here, accelerate some new construction there, and before you know it, production will be greater than ever.”
If you fellas had read my entire post you would have seen my contention was that widespread such attacks, spread to the Saudis, Bahrain, Kuwait, UAE etc. would shut down oil production in the gulf. Especially if shipping is also squeezed.
That’s not doom saying. It’s a fact.
On the issue of Aramco getting this facility back online...
Of course they will, absent ANOTHER attack. They are very, very good when it comes to paying for whatever resource is necessary.
All such facilities are extremely vulnerable. Whether in SA, the other Gulf states...or Houston.
But the idea you can repair a well hit facility like this, some of which burned to the ground, in a matter of days is ludicrous.
Nearly as much as the idea the world (and Aramco) can up production 5.7 million bbl/day in any measure less than a year...or more.
They are very, very big with thousands of interconnected processes and individual functions. And the materials on that scale, while probably available for this singular hit, could be weeks away by ship, at best.
What is your predicted month/year they will replace that 5.7 million bbl/day?
Yeah, we know, any excuse to raise the price at the pump. Saudi oil amounts to a piddly 5% of our oil usage.
Just setting the stage for us to accept higher prices, just when they were going down.
I knew something would be happening to make an excuse to raise prices.
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