The oil slick in Saudi Arabia

A pattern is emerging. Initially it was thought that terrorists were interested mainly in harming the western population spread around the globe. But recent events imply that they are now targeting the ‘‘free market economy’’. Just a month back another major, but unsuccessful, attack was launched on Iraq’s vital oil installations when three explosive-laden boats manned by suicide bombers exploded close to oil platforms and oil tankers, seven miles off shore. Fortunately, major damage to oil installations was averted because of alert American solders.

This Saudi attack raises two important issues: the safety of oil assets in various parts of the world and the impact of such attacks on the global economy. Al-Qaeda is targeting Saudi Arabia because of its pro-western bias. Another major attack on Saudi oil installations may bring radical political changes within the country. Such attacks may also lead to an outflow of international workers who are currently engaged by Saudi oil companies to their respective countries. From what we know of Al-Qaeda, one cannot presume that they will target only Saudi oil installations in the near future. Even oil pipelines, which are the most vulnerable components of the global oil industry, could be targeted. Pipelines are unsafe all over the world.

The attack in Saudi Arabia could be viewed as a start of a concerted Al-Qaeda offensive to disrupt Saudi supplies at a time when oil prices are already high enough to threaten world economic growth.