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Thesis & Antithesis

A critical perspective on energy, international politics & current affairs

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Location: Washington, D.C.

greekdefaultwatch@gmail.com Natural gas consultant by day, blogger on the Greek economy by night. Trained as an economist and political scientist. I believe in common sense and in data, and my aim is to offer insight written in language that is clear and convincing.

24 February 2006

Attack on Saudi oil

Saudi authorities reported that they have prevented an attack on the country’s Abqaiq crude oil processing facility, “which handles as much as two thirds of the country’s production and most of its exports from the Persian Gulf.” The news caused the NYMEX crude oil index to jump $2.26 (since yesterday) to $62.91 (O&G Journal online). But perhaps it is more important to focus on the fact that the attack failed; although this attack underscores the increasing threat of terrorism and asymmetric warfare, its failure shows that such attacks are by no means easy to carry out. Nor is it obvious that such a random attack will cause irreparable harm, though it could disrupt markets at a time when there is little spare capacity left.

References:
Eric Watkins, “Terrorists thwarted at Saudi production center,” Oil & Gas Journal Online, 24 Feb 06

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