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Page added on March 5, 2012

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The Shi’ite rebellion in Saudi Arabia and oil

We’re getting more considered commentary from the ‘other’ side.
I have little doubt that the Saudis are lying – they have plenty of reason to.

Comments from Mike Ruppert:

The excellent report from Radio New Zealand adds much more detail to recent events in KSA. We can now say the following with certainty based on approximately 30 press reports emerging from a region where transparency is about as abundant as water in Texas.
The aorta of global crude oil shipment lies between KSA’s pipeline collection facility at Abqaiq and its only major supertanker port at Ras Tanura. My original reporting disclosed that last week. While Iran is claiming total destruction of the pipeline, we can now say that at a bare minimum several small blasts or “fires” have occurred near the pipelines carrying between six and nine million barrels per day, or 9% of the world’s daily oil supply. Whatever the extent of damage, there is no hiding the fact that the most important oil artery in the world is under attack. There will be no let up in the upward pressure in oil prices. If the aorta is completely severed, my guess is that we will know within six days. What oil prices do in that time will give us an indication of how much damage has really been caused. In the entire world, there is no other state that suppresses free speech, truth, and accurate reporting more than the Kingdom of Saudi Arabia. — MCR

Saudi unrest set to trigger oil price hike
Press TV,
Oil prices have soared to their highest level in the past ten months following reports of an explosion of pipelines in Saudi Arabia’s oil-rich Eastern Province.
Although this piece misses the BIg Picture (namely oil) it does give a good backgrounder to the growing rebellion in Saudi Arabia.  It is onlya matter of time before the ‘proverbial hit the fan’

6 Comments on "The Shi’ite rebellion in Saudi Arabia and oil"

  1. MrEnergyCzar on Mon, 5th Mar 2012 4:16 am 

    When a spring rising happens in Saudi Arabia, we’ll be put in a global depression with the high oil….


  2. BillT on Mon, 5th Mar 2012 10:41 am 

    The Saudi king/dictator is 87 and very ill. The successor is also in his 80s.

    If they don’t pay off the citizens with food and money, there will be riots in the streets and who knows where oil prices will go? I think it is going to be a long hot summer everywhere this year.

  3. Arthur on Mon, 5th Mar 2012 11:05 am 

    ‘Peakoilers’ who are serious about saving as much as possible from civilisation should greet this development. It is better that the flow of oil is temporarily halted by political events than because there simply is no more oil to flow. Richard Heinberg and others are advocating ‘demand destruction’. Supply destruction basically has the same effect, namely creating an awareness of the energy problems, so we can use what is left of the oil for setting up a renewed (far more modest) energy base.

  4. Arthur on Mon, 5th Mar 2012 12:44 pm 

    Putin was reelected yesterday and he said he is not going to allow the destruction of Russia by foreigners (wonder who that might be). I do not think that Russia and China will intervene immediately but will wait until Iran has sunk a few tankers and the Shia in SA will organise an uprising. From that moment on the Chinese are forced to intervene to prevent collapse of their own society. They could invade with a massive land army via the Chinese-Afghan border and try to occupy the Middle-East (distance China-Iran ‘only’ 1000 miles), for the US Iran is over the ocean. All plays in the hand of the Russians when oil prices will quadruppel. In the end Germany is going to make the difference, since it is vulnerable for Russian pressure, since Germany gets 100% of it’s oil from Russia. Russia can threaten Germany to sell the oil to China. Would not be suprised if Germany will join SCO a year or so into the war with other European countries following. End of the West.

  5. BillT on Tue, 6th Mar 2012 12:44 am 

    Arthur, you could be correct. Iran has more pieces on the board than the US has at this point. And they are mostly front line, not rooks. The Persians (Iranians) have been playing chess for 1500 years.

    The Us only has a very poor and weak NATO to back it up in this adventure and most of NATO’s resources would be hard pressed to occupy the entire Middle East as would the US. Especially if the oil is cut off for months and the economies of the West crash. The US cannot keep the Strait open if the Iranians really want to close it. Sink a few tankers in the channel and the game is over. Or China could call Bennie and tell him they are going to crash the dollar if the US does not pull out. Or Russia could cut off their oil exports to Europe and send it to China. This scenario has a lot of options. Iran is not Iraq.

  6. Kenz300 on Tue, 6th Mar 2012 7:35 pm 

    Relying on the middle east with their unstable governments is risky at best.
    Every individual, business and country needs to develop a plan to become more sustainable. We need to balance population, resources, food, energy and jobs. A cut off of oil supplies from Saudi Arabia would cause chaos in the world economy.

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