Now, imagine we had banned fracking, and 5 million BPD of Saudi oil went offline for an extended period of time. I can’t even imagine where oil prices might end up under that scenario.
In any event, regardless of how bad this turns out to be, it highlights a major vulnerability that will probably bring back a fear premium to the price of oil. There aren’t that many oil vulnerabilities around the world capable of sidelining millions of barrels a day of crude oil, but the Abqaiq crude processing facility is certainly one of them.
Follow Robert Rapier on Twitter, LinkedIn, or Facebook.