NKU Attacks on the Oil Facilities Threaten Fragile Saudi Economy Paper hello i have attached my Gena project i need you to add on it . also please find an

NKU Attacks on the Oil Facilities Threaten Fragile Saudi Economy Paper hello i have attached my Gena project i need you to add on it .

also please find any updated article for this project and add it to the paper i need at least 2 more paper to add to this word document please see the out line below and follow the instruction also i will attach a book name for the citation ..

i will add a part of the book i want you to relate it to this project if there any relation because she want some thing in this project from the book:

Gulf Cooperation Council (GCC)

Several Middle Eastern nations formed the Gulf Cooperation Council (GCC) in 1980. Members of the GCC are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The primary purpose of the GCC at its formation was to cooperate with the EU and EFTA. But it evolved to become as much a political entity as an economic one. Its cooperative thrust allows citizens of member countries to travel freely in the GCC without visas. It also permits citizens of one member nation to own land, property, and businesses in any other member nation without the need for local sponsors or partners. Running Head: Attacks on the Oil Facilities Threaten Fragile Saudi Economy.
Attacks on the Oil Facilities Threaten Fragile Saudi Economy
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Running Head: Attacks on the Oil Facilities Threaten Fragile Saudi Economy.
Update.
The September 14th attack on Saudi oil infrastructure resulted in significant oil crisis in
the global markets (Jones, 2019). The significant drop in the output of the second-largest oil
producer in the world resulted in speculations that prices of oil would surge for a relatively long
period. However, this did not happen.
The sharp increase in the prices of oil was temporary and it fell shortly after. The attack
also affected the petrochemical industry, however, it also managed to quickly recover. Saudi
Arabia announced that they have anticipated short-term disruptions of product deliveries, with
delays across October. Saudi Arabia was quick to cut off the oil crisis by using its reserves to
compensate partial losses and by assuring that they will meet export commitments. Saudi
Arabia’s oil reserves can adequately satisfy the demand for oil for a period of up to four months.
Saudi Arabia managed to compensate for damage and stabilize the situation quickly. However,
these attacks could still result in negative long-term implications.
Most of the oil consumers are concerned about the possibility of an occurrence of a similar
attack since this is an indication of an existing security threat. It has been conceived that
disruptions and major damages could be executed cheaply with weapons that can be easily
obtained. The fear of attack could influence the prices of oil every time a crisis escalates. This
could also push buyers to reduce their reliance on purchasing oil from Saudi Arabia. There are
signs that Asian oil buyers are considering alternative sources while major oil suppliers are
getting ready to accommodate increased oil demands from the Asian markets. The Chinese
markets made considerations of purchasing additional LPG from the US market to accommodate
the potential delays by Saudi Arabia’s deliveries despite additional tariffs which made US
products more expensive.
Running Head: Attacks on the Oil Facilities Threaten Fragile Saudi Economy.
Theory and Integrated Concepts from Class.
The theory of absolute advantage is one of the theories identified in this case. The theory
of absolute advantage in international trade refers to the ability of a country to produce more
goods or services than competitors using the same amount of resources (Lang, 2011). Compared
to its competitors, it is much easier to extract oil in Saudi Arabia than in other countries. Oil in
Saudi Arabia is abundant, this makes it easier since the task will only be the drilling process
whereas other countries initiate this process by exploration before making considerations about
drilling.
Part of the integrated concepts encountered includes political risks and its influence on
international trade. Political risk entails the likelihood that a community will encounter political
changes that would negatively impact on local business activity. The main sources of political
risks constitute terrorism like the one witnessed above. Trade interdependence is also another
concept. Saudi Arabia is a major oil, it possesses the National Competitive Advantage. The
ability to easily extract oil in Saudi Arabia along with other attributes allows it to outperform its
competitors in the oil market.
Overview of Saudi Arabia.
Saudi Arabia is one of the world-largest oil producing companies in the world followed
by the United States (“Survey: Saudi Arabia: outlook for the oil industry”, 2011). The country
has the world’s largest identified oil reserves. Its largest importers of oil include the United
States, Japan, China and Korea. Saudi’s oil industry accounts for 87% of the budget revenue,
42% GDP, and constitutes 90% of the earnings from export. The drone attacks indicated a
vulnerability of the oil infrastructure. Saudi Arabia can make up for losses resulting from
Running Head: Attacks on the Oil Facilities Threaten Fragile Saudi Economy.
interferences of inflows since it holds large amounts of oil in stores. Saudi Arabia is known for
its credibility as a reliable supplier of oil, and the role it plays as a major exporter.
Running Head: Attacks on the Oil Facilities Threaten Fragile Saudi Economy.
References
Jones, R. (2019). Attacks on Oil Facilities Threaten Fragile Saudi Economy. Retrieved 20
October 2019, from https://www.wsj.com/articles/attacks-on-oil-facilities-threaten-fragilesaudi-economy-11569427859
Lang, N. (2011). The Latent Absolute Advantage Of The Comparative Advantage In Theories Of
International Trade. International Business & Economics Research Journal (IBER), 5(1).
doi: 10.19030/iber.v5i1.3446
Survey: Saudi Arabia: outlook for the oil industry. (2011). Oil And Energy Trends, 36(11), 1016. doi: 10.1111/j.1744-7992.2011.00168.x

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