France's Finance Minister Roland Lescure revealed on Wednesday that between 30 and 40 per cent of Gulf refining capacity has been damaged or destroyed by Iran's retaliatory strikes, leaving a shortage…
The title is a bit clickbaity — the actual article text is “damaged or destroyed” — but it does give an idea for how much output could be immediately resumed if all hostilities were stopped immediately.
Damaged is as good as destroyed for the short term market. Much of this oil field equipment is pretty specialized and considering the widespread damage, both materials and skilled labor for repairs will be in short supply. Even if hostilities ended tomorrow, it will probably take 9-12 months to restore output from all damaged facilities, and outright destroyed ones may never ever come back online.
The title is a bit clickbaity — the actual article text is “damaged or destroyed” — but it does give an idea for how much output could be immediately resumed if all hostilities were stopped immediately.
Damaged is as good as destroyed for the short term market. Much of this oil field equipment is pretty specialized and considering the widespread damage, both materials and skilled labor for repairs will be in short supply. Even if hostilities ended tomorrow, it will probably take 9-12 months to restore output from all damaged facilities, and outright destroyed ones may never ever come back online.
It also specifies “refining capacity” which is really not the same thing as “energy infrastructure” in a region that exports so much crude…