Saudi Outage May Test US Swing Producer Abilities
If the Saudi supply outage is sustained, we may well see a test of how well the U.S. industry can dynamically adapt to market needs.
That’s what Will Scargill, managing oil and gas analyst at GlobalData, said in a statement sent to Rigzone on Monday.
In the statement, Scargill added that a period of sustained heightened prices and inventory draw-downs would likely spur U.S. players to drill more but noted that their ability to bring swing supply would be put to the test and could be limited by financing and infrastructure constraints.
In a comment posted on its website over the weekend, Saudi Aramco revealed that emergency crews contained fires at the company’s plants in Abqaiq and Khurais, “as a result of terrorist attacks with projectiles”.
The company confirmed that these attacks resulted in production suspension of 5.7 million barrels of crude oil per day.
According to Torbjorn Soltvedt, principal MENA analyst at Verisk Maplecroft, the attacks will prove a “headache” for oil markets.
GlobalData describes itself as the “gold standard” data provider to the world’s largest industries. Verisk Maplecroft describes itself as a leading research firm and consultancy specializing in global risk data and country risk analysis.
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