A point of view by Karl Bernd Esser.
The drone and cruise missiles attack in Saudi Arabia has temporarily stopped the world’s largest IPO of Saudi oil giant ARAMCO (the world’s largest oil production company). This allows investors and exchange gurus to take a closer look at the situation on the ground. Saudi ARAMCO Managing Director Amin Nasser announced that oil production, which slumped after the attacks, would return to its previous level at the end of the month. The Energy Minister, Prince Abdelaziz bin Salman, said half of the collapsed oil production had already been restored. ARAMCO is currently making a profit of 500 million dollars a day. Oil and gas, as is true for other fossil resources, are not unlimited.
And if the exact data about the (sometime) forthcoming Saudi Arabian Peak Oil (i.e. the point in time from which the oil production can only go downward) is understandably one of the hottest secrets of ARAMCO common sense would lead even a layman to conclude that a foresighted government would do well to provide for the forthcoming phase-out of its own oil and gas production in time. The Saudi oil ministry is also hiding the fact that its nationwide oil and gas production has passed its zenith from the world and is trying to place its oil company ARAMCO on the stock exchange as soon as possible. The depleted Saudi coffers and ARAMCO are delighted by new oil wells. But the dilemma is that these wells are 1.800meters below Yemen and not in their own kingdom.
The Iranian attack on the oil plants in Khurais and Abqaiq came at an critical time. It made it clear to future investors that Saudi Arabia cannot protect its most important oil fields from simple air attacks. Saudi air defence systems date back to the Gulf War of 1991, and neither in the air nor on the ground can the Saudis do without support. Military experts also point out that Saudi Arabia has ground troops that are too weak to defeat the rebels in Yemen. Without American or Israeli aid, Saudi Arabia will therefore have little leverage against its arch-enemy Iran.