Page 13 - MEOG Week 07 2022

MEOG NEWS IN BRIEF MEOG

OIL “Regarding energy and oil markets, the GAS
Custodian of the Two Holy Mosques [Salman]
Iran’s crude oil output hits stressed the importance of maintaining Israel will not object if
balance and stability in the oil markets,” it
2.5mn bpd in January says. But it adds a key detail not mentioned in exported gas reaches
the White House’s version. The Saudi version
Based on OPEC’s most recent monthly report, says King Salman “highlight[ed] the role of Lebanon, minister says
Iran’s crude oil output during the first month the historic OPEC Plus agreement … and the
of 2022 hit 2.503 million barrels for each day, importance of maintaining the agreement.” Israel’s energy minister said on Tuesday that
recording a 21-percent rise in comparison to Experts say that pointing to the it would not be a problem if Israeli natural
the figure for December of the preceding year. Organization of the Petroleum Exporting gas that is exported to Egypt makes its way to
According to the report quoting secondary Countries’ agreement — the arrangement by Lebanon, a long-time enemy that is dealing
sources, the country’s crude oil production which oil-producing member countries set with an energy crisis.
stood at 2.482 million bpd of crude oil in oil prices, and over which Saudi Arabia exerts Lebanon has already signed a deal with
December of last year. major influence as the largest oil producer — Jordan that aims to ease crippling power
The report showed that the Islamic is a signal that the kingdom again declined to shortages by transmitting electricity across
Republic’s median crude oil production increase production. neighbouring Syria, and it is looking to get gas
for the October-December period of 2021 Shortly after the call, the International from Egypt as well. read more
reached 2.480 million bpd demonstrating a Energy Agency attributed soaring gas prices Egypt produces its own gas but still needs
40,000-bpd rise in comparison to the figure to Saudi Arabia’s “chronic” refusal to increase imports from the Israeli offshore natural
for the January-March of the current year. production. gas field Leviathan. Leviathan also supplies
OPEC set the median Iranian crude oil “My read of the difference is basically Jordan.
production for 2021 at 2.405 million bpd, that what happened is that the White House “There’s a big energy crisis in Lebanon,”
whereas the median production in 2020 stood pressed for OPEC/OPEC+ and/or Saudi Energy Minister Karine Elharrar told Israel’s
at 1.988 million bpd. Arabia to increase oil production,” Ellen Wald, Army Radio. “Nobody can go and inspect the
MENAFN senior fellow at the Atlantic Council, told The molecules and check whether they originally
Intercept in an email. “Saudi Arabia’s response came from Israel or Egypt.”
Saudi Arabia rejects Biden was that it is operating within the confines of calm to the region, I can’t object to it”, she
If gas exports that reach Lebanon “bring
its commitments to OPEC+. … I also don’t
plea to increase oil output see Saudi Arabia pushing to renegotiate the added.
The likely route for the gas supplies, given
deal to allow for greater production increases.”
Last week, President Joe Biden had a high- As a result, high gas prices could persist the current network of pipelines, would be
profile call with King Salman bin Abdulaziz into the midterm elections, where they have from Leviathan to a pipeline across Israel into
al-Saud in an effort to partially restore a historically had an acute influence on voter Jordan, bypassing Egypt, said Amit Mor, CEO
relationship with Saudi Arabia. behavior. of Israeli consulting and investment firm Eco
According to the White House’s readout, Perhaps the most infamous example of this Energy.
during the call, Biden reaffirmed the was during the 1979 oil crisis, when following From there, it would go north through
willingness of the US to aid Saudi in so-called the Iranian revolution, oil production Syria and into Lebanon via the Arab Gas
defensive operations against the Houthis slumped, sending gas prices skyrocketing. Pipeline.
in Yemen, following recent attacks by the President Jimmy Carter, keenly aware of the He estimated that the Leviathan partners
Houthis on the United Arab Emirates and effect of high gas prices on his reelection would stand to earn an extra $100 million in
Saudi Arabia. prospects, called the collapse in oil production revenue each year with such an arrangement.
It also alludes to a discussion of the “the moral equivalent of war.” (Carter would Delek Drilling, a partner in Leviathan,
kingdom’s oil production, which has remained not win reelection.) Previously in the 1970s, declined to comment.
low since Saudi Arabia denied Biden’s request Gulf countries, including Saudi Arabia, Elharrar participated in an industry event
to increase it in August. “Both leaders further restricted oil exports as a political weapon in a in Cairo on Monday where she received a
reiterated the United States’ and Saudi Arabia’s contest against Israel. warm welcome from Egyptian President
commitment to ensuring the stability of global THE INTERCEPT Abdel Fattah al-Sisi. Representatives from Iraq
energy supplies,” it reads. and Yemen - countries that have no ties with
The Saudi readout uses similar language. Israel over its occupation of Palestinians -

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