As tensions rise in the Gulf following a series of attacks across the region, including on key energy facilities in Qatar, Saudi Arabia, and Bahrain, concerns are growing about regional stability and global energy security. Gulf Times spoke with energy expert Roudi Baroudi about the implications for the Gulf and global energy markets, and his perspective on the recent article by Qatar’s Minister of State for Energy Affairs, His Excellency Saad Sherida Al-Kaabi.
What is your view on the article by His Excellency Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, regarding the recent threats to energy infrastructure in the Gulf?
What I think can only come from what I know, and what I know is that when it comes to energy, HE Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs is one of the best-informed and most highly respected people on the planet. His concerns are perfectly valid, and the fact that he decided to sound the alarm so publicly says much about the urgency of the matter. What I think, therefore, is that people in high places should listen to him, then find a way to end the crisis in our region before its consequences go too far.
Following the targeting of gas facilities in Qatar, Ras Tanura facilities in Saudi Arabia, and the refinery in Bahrain, how serious are the risks facing energy infrastructure across the Gulf?
The unfortunate targeting of oil and gas facilities in Qatar, Saudi Arabia, the UAE, and Bahrain means the risks to energy infrastructure in the Gulf are very high. If we speak only about the refining side, we are talking here about more than four to five million barrels per day of refined products. Part of this includes gasoline, diesel, Jet A fuel, and many other products necessary for industry and transportation. In total, we are looking at over $100bn at stake, and I don’t believe that war insurance is easy to obtain in such circumstances.
If these attacks continue to target major oil and gas facilities in the region, what could be the impact on global energy supply and prices?
Before these interruptions, with only one or two minor disruptions, GCC energy products have been the lifeblood of the global economy. They have helped spread economic opportunity across the world. Many people lifted out of poverty by globalisation were given that chance because of affordable and reliable energy, much of it supplied by GCC producers.
Do these incidents signal a new phase of threats to Gulf energy security and international energy markets?
These grave incidents have led to what could become a supply shock. Globally, we may not find enough spare capacity if disruptions intensify. One analyst in London earlier this week said that such a scenario could have a “nuclear effect” on energy supplies and energy prices worldwide.
