(KLTV) - One of the world’s largest oil processing facilities was attacked, crippling key oil facilities in Saudi Arabia and causing oil prices to soak Sunday night. However, one expert said he does not expect to see a long-term impact concerning gas prices in East Texas.
Satellite images released by the U.S. government show the damage at the Abqaiq Oil Processing Plant and oil field, which is largely considered the heart of the kingdom’s supply.
As a result of the attack, oil prices spiked more than 20 percent Monday morning.
As for gas prices, Dr. Harold Doty with the University of Texas at Tyler said while consumers can expect a short-term effect at gas pumps, the impact should go no further than that.
“The actual oil flow disruption is not significant. We lost about 5 million barrels a day off the global market, and that sounds like a lot, but there is enough oversupply that that is really not an issue,” said Doty, a professor of business management. “If the Saudis get these facilities back up in 3 to 5 days as they first said, there will be no effect at all. It’s just psychological.”
Doty added that even if the Saudis can not repair the facilities in the 3 to 5 days as expected, they have enough oil on reserve to pump for 35 days with disruption.