Saudi Arrests Demonstrate Threat to Energy
munaeem | 01 May, 2007 16:10
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Saudi Arabia's recent foiling of a large-scale terrorist plot, involving attacks on energy facilities, demonstrates the ongoing threat to global energy markets. Saudi authorities arrested 172 people for involvement in the plan, and it is believed that those arrested are Islamist militants pursuing al-Qaeda's ideology.
According to the Saudi Ministry of the Interior, the militants had planned on using aircraft to destroy or damage targets inside and outside of the country, targets that likely included the massive Saudi energy compounds of Abqaiq, Ras Tanura, Juaymah, Rabigh, and Yanbu. If the authorities had failed to disrupt the plot, and the militants had carried out at least some portion of their plan, it would have had a shocking effect on energy markets.
Saudi Arabia currently produces approximately 8-10 million barrels of oil per day, and possesses one-fourth of the world's proven oil reserves. Its key role in global energy supplies means that any interruption in Saudi output results in price increases on the market. The fact that Saudi Arabia has often been the victim of homegrown Islamist terrorist attacks makes the market especially jittery.
For instance, just over one year ago, in February 2006, al-Qaeda affiliated militants executed a brazen attack on Saudi Arabia's Abqaiq oil refinery, the world's largest oil processing center. While the attack was not successful, the militants managed to infiltrate the outer perimeter fence of the facility and at least one security checkpoint, an act that highlighted the fragility of Saudi Arabia's oil facilities and one that temporarily pushed oil prices upward.
Indeed, after Saudi Arabia's announcement of the latest plot, oil prices jumped to their highest price in eight months, hitting US$66.46 per barrel. On Monday, however, after it was clear that Riyadh had the situation under control, oil prices dropped below $66 per barrel.
Nevertheless, Saudi Arabia's announcement is a cause for some concern as it means that the Islamist insurgency that began in the country in May 2003 has not been completely eliminated. While Saudi authorities have clearly achieved successes in combating the threat from domestic militants, the sheer size of the latest plot demonstrates that Islamist scheming is still occurring in the kingdom.
Furthermore, those that adhere to al-Qaeda's ideology have been convinced of the importance in attacking energy facilities since a sharp escalation of oil prices damages the economies of oil dependent countries such as the United States, one of the principal adversaries of the global militant Islamist movement; in January, for example, an al-Qaeda affiliated publication renewed a call for jihadists to attack energy interests.
In addition to energy facilities in Saudi Arabia, other energy producing countries have faced threats and attacks by Islamist militants, such as what was seen recently in Yemen; in September 2006, Islamist militants launched unsuccessful attacks on the Canadian Nexen Petroleum Company's oil refinery in al-Dhabba, and at the U.S.-owned Hunt Oil Company refinery in Safer.
On the one hand, Riyadh's string of successes in foiling these plots demonstrates the government's ability to infiltrate and destroy these groups. On the other hand, the fact that such threats still exist on this large of a scale means that the possibility remains for a devastating attack in the kingdom.
Technorati Tags: Middle East, Saudi Arabia
http://www.pinr.com
Saudi Arabia's recent foiling of a large-scale terrorist plot, involving attacks on energy facilities, demonstrates the ongoing threat to global energy markets. Saudi authorities arrested 172 people for involvement in the plan, and it is believed that those arrested are Islamist militants pursuing al-Qaeda's ideology.
According to the Saudi Ministry of the Interior, the militants had planned on using aircraft to destroy or damage targets inside and outside of the country, targets that likely included the massive Saudi energy compounds of Abqaiq, Ras Tanura, Juaymah, Rabigh, and Yanbu. If the authorities had failed to disrupt the plot, and the militants had carried out at least some portion of their plan, it would have had a shocking effect on energy markets.
Saudi Arabia currently produces approximately 8-10 million barrels of oil per day, and possesses one-fourth of the world's proven oil reserves. Its key role in global energy supplies means that any interruption in Saudi output results in price increases on the market. The fact that Saudi Arabia has often been the victim of homegrown Islamist terrorist attacks makes the market especially jittery.
For instance, just over one year ago, in February 2006, al-Qaeda affiliated militants executed a brazen attack on Saudi Arabia's Abqaiq oil refinery, the world's largest oil processing center. While the attack was not successful, the militants managed to infiltrate the outer perimeter fence of the facility and at least one security checkpoint, an act that highlighted the fragility of Saudi Arabia's oil facilities and one that temporarily pushed oil prices upward.
Indeed, after Saudi Arabia's announcement of the latest plot, oil prices jumped to their highest price in eight months, hitting US$66.46 per barrel. On Monday, however, after it was clear that Riyadh had the situation under control, oil prices dropped below $66 per barrel.
Nevertheless, Saudi Arabia's announcement is a cause for some concern as it means that the Islamist insurgency that began in the country in May 2003 has not been completely eliminated. While Saudi authorities have clearly achieved successes in combating the threat from domestic militants, the sheer size of the latest plot demonstrates that Islamist scheming is still occurring in the kingdom.
Furthermore, those that adhere to al-Qaeda's ideology have been convinced of the importance in attacking energy facilities since a sharp escalation of oil prices damages the economies of oil dependent countries such as the United States, one of the principal adversaries of the global militant Islamist movement; in January, for example, an al-Qaeda affiliated publication renewed a call for jihadists to attack energy interests.
In addition to energy facilities in Saudi Arabia, other energy producing countries have faced threats and attacks by Islamist militants, such as what was seen recently in Yemen; in September 2006, Islamist militants launched unsuccessful attacks on the Canadian Nexen Petroleum Company's oil refinery in al-Dhabba, and at the U.S.-owned Hunt Oil Company refinery in Safer.
On the one hand, Riyadh's string of successes in foiling these plots demonstrates the government's ability to infiltrate and destroy these groups. On the other hand, the fact that such threats still exist on this large of a scale means that the possibility remains for a devastating attack in the kingdom.
Technorati Tags: Middle East, Saudi Arabia
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