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Aramco On Lockdown After Houthi Missile Attack

Aramco On Lockdown After Houthi Missile Attack

Saudi Arabia had intercepted a ballistic missile attack on facilities owned by state oil major Aramco in the Eastern Region, Reuters has reported, citing the Saudi defense ministry.

Earlier reports said Aramco facilities in Dharan had gone on lockdown because of a suspected attack.

The Iran-affiliated Yemeni Houthi group claimed responsibility for the attacks on Sunday, saying it had used ballistic missiles and drones.

Ras Tanura, which is home to extensive oil infrastructure, was not the only target of the attack: the Houthis also targeted Aramco property in the southern Saudi provinces of Jizan and Najran, according to the rebel group’s spokesman who claimed responsibility for the attacks.

Aramco oil facilities are understandably a preferred target for the Houthis, which Saudi Arabia is trying to oust from Yemen after they removed the Saudi-affiliated government of the country in 2014 and has since then assumed power in most of Yemen. The Yemeni war, which has resulted in the worst humanitarian crisis in modern times, is widely seen as a proxy war between regional rivals Saudi Arabia and Iran.

The Saudis most often intercept the Houthi attacks but not always. The most notable attack that the Yemeni rebel group claimed responsibility for was the September 2019 attacks on Saudi Aramco’s oil facilities, including an oil field and a processing plant

That attack cut off 5 percent of the daily global supply for weeks, sending oil prices soaring. But Saudi Arabia and the United States said at the time that it was Iran—and not the Houthis—that was responsible for the attack, even though the Yemeni group again claimed responsibility for the strikes.

Since the start of the Yemen war, several attempts have been made at reaching a ceasefire agreement, but so far, all have failed, locking the Saudis and the Houthis in a stalemate.

Aramco’s Carbon Emissions Could Be “Nearly Double” What The Company Discloses

Aramco’s Carbon Emissions Could Be “Nearly Double” What The Company Discloses

It was no secret that leading up to Saudi Arabian Oil Co.’s IPO in 2019 that the company touted its low emissions compared to other producers.

Chief Executive Officer Amin Nasser said while the company was doing its roadshows: “Not because our crude is cleaner than other crudes globally. It’s because of our standards. Even though our numbers are great, climate change is critical for the world.”

But now, it appears the company may have “failed to provide a complete picture”, according to a new Bloomberg report. The report says that Aramco fails to account for emissions generated from many of its refineries and petrochemical plants.

Inclusive of the omissions, Bloomberg estimates that the company’s carbon footprint would “nearly double”, and that Aramco would add as much as 55 million metric tons of CO2 to its annual tally. 

Now that investors “need to be able to put a price on the climate risks that they are running in their portfolios,” as one commodity researcher put it, the carbon footprint numbers can easily turn into a “red flag”.

When Bloomberg reached Aramco for questioning, the company replied: “We have a clear and deliberate path to increase the scope and details of [emissions] disclosure.” It said its current number “reflects emissions from those assets where Aramco has the accountability and ability to manage and control emissions.”

The company gets away with its current disclosures by pointing to the process of extracting the oil in Saudi Arabia. It will often cite studies that show that extraction of Saudi oil generates the second lowest amount of emissions in the world.

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