Bloomberg/Simon Dawson

Economy

Saudi oil fields are in the firing line as geopolitical tensions rage

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The threats to the Kingdom’s crude production and infrastructure shine a light on the risk to global oil supply given that state-owned Saudi Aramco is the world’s largest exporter.

Monday 19, August 2019

Saudi Arabia’s oil fields, responsible for almost a 10th of global crude production, are in the firing line having been recently targeted by air, sea and land, reported Bloomberg.

Flaring tensions in the Arabian Gulf have seen some of the world’s biggest crude deposits, along with processing and transport infrastructure and vessels, targeted by explosives-laden drones and bombings.

Saudi Arabia’s more than 100 crude deposits contain some 257 billion barrels of proved oil reserves, the world’s biggest conventional finds.

Saudi Aramco can pump as much as 12 million barrels a day. The company produced 10 million barrels daily during the first half of the year, keeping as a policy some two million barrels of capacity unused to allow it to react to any supply shortages.

The state-owned oil giant exported seven million barrels of crude a day, more than any other company, making its role as a global swing producer and the security of its oil fields vital to global markets.

About three-quarters of Saudi Aramco’s daily output comes from Ghawar, Khurais as well as Safaniyah and Shaybah, the company’s four main oil fields. Those main deposits are in the eastern part of the country and most of that crude passes through the Strait of Hormuz, the narrow shipping chokepoint leading out of the Gulf.

 

TAGS : Saudi Aramco, geopolitical tension, Strait of Hormuz

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