Now drone-attack risk will be reflected in rate of return on every drone-attack-prone industry. US needs to respond with slightly more than proportional attack - more than Iran is expecting but not necessarily would lead to war so that futur drone-attack risk by anyone can be safely mitigated.
I paid $2.15/gallon yesterday - media at it again.
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Good. It's far past time to abandon oil and other industries with a huge carbon footprint. Alternative, renewable energy sources like solar, wind and biofuels are the only path to a future.
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The Saudis certainly deserve all the harm they get. They have been dropping US-made bombs on Houthi hospitals and schools, and killing more women and children than male combatants. The sooner we convert to solar, wind, riparian and tidal power, the sooner we can be shut of this dismal font of malice.
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The sudden jump in prices has absolutely zero to do with the bombing of a Saudi facility, except that a global oil company expects to be negatively impacted by loss of sales of non-US oil in a non-US market (probably China) and the bald calculus that uninformed Americans still believe we depend on oil from that part of the world. We don’t. That Trump wants to increase supply by opening the Strategic Oil Reserve is only about artificially lowering the price in the US market to make him look like he had some positive effect on our economy. He hasn’t.
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This smells like some "Green New Deal" mischief.
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“The psyche has been altered,” said Tom Kloza, global head of energy analysis for Oil Price Information Service. “Now you have the thought, ‘What if the other shoe drops and we have a wider conflict?’”
Ha! Trump has been poking the Iranians for years and the Masters of the Universe are just having this thought now? If that’s true, it is time to take back their tax breaks and assign them readings by Kafka & Kissinger.
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It's complicated! Military response--War-- is threatened at the same time:
-markets are volatile, worried about impending recession;
-a major Saudi oil processing plant is drone-disabled;
-many national oil and gas reserves are full, reducing danger of shortages;
-climate sensitive nations are developing alternatives to fossil fuels, reducing demand for oil and gas;
-Iran is burdened and embittered by sanctions;
-Iran is active in Iraq, Syria, Lebanon, Yemen;
-Trump unilaterally took U.S. out of JCPOA, wants back in;
-Iran resumed nuclear alternatives;
-Trump's Tweet is "locked and loaded"...for what?
- DOD is understaffed, stretched thin with overseas bases;
-DOD is war averse with two unfinished ones;
-Allies don't trust Trump from one tweet to the next;
-Trump needs a doctor to find more bone spurs so he can avoid war.
U.S. needs Red Flag law to avert "extreme risk."
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If the perimeter is heavily guarded, why is there no surveillance video of the drone/missile approaches or strikes?
In 2017, Trump proposed selling half the strategic petroleum reserves, and the conservative Heritage Foundation proposed selling all of it. https://www.washingtonpost.com/news/energy-environment/wp/2017/05/22/trump-seeks-to-sell-off-half-of-the-strategic-petroleum-reserve/ (also in a broader story in the NYT: https://www.nytimes.com/2017/05/23/climate/trump-budget-energy.html).
This was because they argued there's less need for the reserves, and the sale could help reduce the deficit (greasing the skids for Trump's tax cut for the rich). On top of this, this was at a time when oil prices were low (so Trump wanted to sell low oil that may have been bought at a higher price), a short-sighted self-serving strategy.
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As soon as our military started using drones and demonstrated their ability to fly undetected, and deliver a lethal payload to a target, it was obvious they would eventually be used by weaker adversaries in conflicts.
They are ideal for evading radar. Small armies of drones will be able to attack anything deemed a target.
Drones can be developed in relatively small spaces and launched from almost anywhere. Small adversaries can take on much larger ones and make a big impact at relatively low cost.
The Saudis have spent billions on systems to protect their oild fields. They also have a "scorched earth," system in place to destroy their oil fields instead of letting an enemy gain control of them.
This attack shows how inexpensively and easily it can all go up in smoke.
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This situation should not leave a huge impact to the United States because our oil does not exclusively come from Saudi Arabia anymore. However oil prices will reach their peak and there is nothing that we can do to reduce the prices. For now we are going to have to bear through the rapid increase of crude oil. This includes an increase of gasoline prices.
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Not in a minute do I believe Iran is responsible. The United States of America has her hand prints all over this. With the help of the Saudi's.
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@Joyce Matthews
So are you saying the Iranians are liars when they have explicitly stated in the past that they will perform attacks exactly like this ones??
And why are Houthis, allies of Iran taking credit for the attack then??
This could actually be a good thing and the only practical way to stop climate change.
It is obvious that the hydrocarbon addicts all over the world are never going to go into rehab voluntarily.
Perhaps the only solution is cut off their supply. Starting at 5% of the supply sounds like a good start. Let them adjust and then cut another 5%. Repeat. It is a proven way to withdraw addicts.
Yes, all of us addicts will suffer for awhile but we will survive, something that is far from guaranteed by the status quo.
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poor still poor. rich as always getting richer
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I have a brilliant idea...
Don't raise prices.
Just like they say don't publish the names of the shooters to remove their incentive to get publicity.
Demonstrate that such attacks won't have the affect they desire.
Of course there is money to be made by those looking to profit from others hardships so it won't happen, but think of it. What a let down to the attackers.
(And then quietly increase defenses so to prevent from happening again.)
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@Marie Tell that to the retailers. Event out yesterday morning and gas had already jumped up 8 cents a gallon just in the word.
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1- Trump goes down in the polls.
2-His handler Putin plans to prop him up by allowing an Iranian backed attack on Saudi Arabia causing great damage which Iran and Putin want.
3-Putin then allows Trump to make a cream puff retaliation on Iran causing little damage like what happened before.
4-Putin wins, props up his stooge Trump, and damages Saudi Arabia which he is not friendly with but supports Iran. Trump declares he is the greatest general in US history.
5-America looks stupid, exactly what Putin wants.
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The less oil leaves the Abqaiq processing center, the less oil ends up burned and turned into carbon pollution. How is that not a good thing?
The US has been subsidizing the price of gasoline for decades through endless tax and regulatory handouts to the oil industry. Compared to any other developed nation, gasoline in the US is ridiculously cheap.
If you don't like the price of gasoline, don't buy it.
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@insight That's easy to say and hard to do. Not all of us live in an area where there is public transportation and not all cars run without gas. If it were possible to not buy gas I would do that. Unfortunately I do not have an option. And until electric cars can go greater distances without needing a charge it's going to be a long time before we can lose our dependency on gasoline.
@LizW
Went out and took a careful look at the vehicle I use to commute to work every day, year-round, rain or shine.
Pedals- check. Lights - check. Panniers - check. Gas tank ... gas tank...? Nope, still don't see one.
Iran is responsible? More like Exxon-Mobil.
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Go renewables. Problem solved.
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Any big oil producer could have dropped drones on a Saudi oil facility. That includes Russia. That includes any private oil company.
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Buy electric. There are more companies coming on line. The Chevy Bolt is okay (I have one), the Tesla a better looking and a longer range vehicle, Nissan Leaf, Jag, Kia and others are there. Plug in hybrids are plentiful too. Used/preowned prices are still low especially those coming off lease. ( Discalimer:I have no business relationship with the auto industry).
My electric bill went up maybe $10.00 a month while my corresponding fuel bill went down $130.00+. And locally people here can belong to a co-op (NOVEC) that helps.
In the long run, less use of oil means less importance of all this crude driven behavior and maybe a saner geopolitical realignment.
Fairy tales can come true.
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@Rick Tornello
Electrics are expensive to purchase.
I have existing cars with sunk costs.
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As Rick Tornello points out, use EVs are cheap due to an over supply of expired leases. If you drive less than 70 miles per day you can recharge over night at a cost of about 2 cents per mile. EVs with that range can be purchased for $5000 or less.
You say these increases benefit “the industry” which is not true for all companies in that industry. Valero, which is the largest pure refiner in the US was down over 5.00 per share today, so obviously it isn’t perceived it is benefit them.
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Iran ? Or Chevron. I know one thing. I trust the Iranians a lot more.
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@sheikyerbouti. If that is the case then I pity you.
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Suddenly the Green New Deal becomes a bit more interesting.
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Hurricane Katrina was a natural disaster. This a is man-made, pass-the-blame, rattle the sabers, man the drones. District 9 anyone?
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How pathetic is it that one can reasonably ask if this attack was performed under Trump’s orders to drive up oil prices to benefit his Russian overlords? At least in the past, we started wars to benefit American companies.
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@Upstate Guy US oil and gas industry also major beneficiaries here and are major trump/republican donors
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Don't forget Jared's BFF MBS. SA benefits enormously with a weakened Iran.
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I suppose our history since 1973 of oil companies and oil producing counties manipulating oil prices to the detriment of consumers and entire economies colors my view of who is responsible this time in the oil wars. But now, finally, we have a choice we can exercise by never again buying fossil fuel run cars and, soon, trucks, and buying electric vehicles instead. Here in California we are dumping fossil fuels for making electricity at breakneck speed, and I believe we can move even faster. Our children and grandchildren may be blessed with never seeing an oil war again. Let’s make this one the last one and agree to make this our reality: 100 percent non-fossil energy. Now!
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@Dennis. And you are going to fuel airplanes how? Perhaps unicorn gas can be harnessed to solve that problem.
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Right. Dennis never mentioned airplanes. So beat him up over it as if he did and wasn't simply talking about taking some vehicles out of the mix, but not all. Yep, sounds like right wing retort.
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Without automobiles sucking up oil, jet fuel will be very inexpensive and plentiful.
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Most of the oil in the strategic reserve was likely purchased way above current price. That sounds like Trump though, buying high, selling low.
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Hey, the very stable genius has got this. What could possibly go wrong ?
Also, it's time for Wine.
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@Phyllis
I was going to correct you and say whiskey, but you are right, better to keep the hard stuff in reserve.
If we accounted for all the damage and ancillary costs of using oil and gas, prices would be a LOT higher, as well they should be. Do I worry about higher prices? Not a whit.
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Trump's international blunders and bluster, from China to Iran, is going to land us in the poor house.
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@Keitr. Yeah, record low unemployment, real wage gains year over year, yeah it’s tough alright.
Good question, James.
Venezuela must be happy.
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“...benefitting the industry and hurting consumers.”
You sure it’s Iran behind the attacks...?
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