A rogue energy system in the Middle Eastern oil-producing region has caused massive power outages across the region, causing massive disruption to the region’s energy industry and potentially putting thousands of rigs out of business.
The outage has also prompted Saudi Arabia to shut down its oil and gas fields in order to restore power to those facilities, a move that could have a ripple effect in the region and possibly impact other sectors as well.
Saudi Arabia has been the biggest oil producer in the world and one of the world’s top exporters of crude oil, but it has been unable to restart its oil production in recent months as the cost of producing the crude has skyrocketed due to a drought.
The rogue energy grid has disrupted the region for more than two weeks, with many oil-field workers reporting their vehicles, including those of the Saudi military, have been affected.
In addition to causing a power outage, the outage has caused the shutdown of nearly 2,000 gas-fired power plants, and hundreds of thousands of homes have been damaged or destroyed by the power grid’s outages.
It is the second major outage in Saudi Arabia since mid-November, when the country shut down 1,800 oil wells, and more than 3,000 natural gas wells due to an energy crisis that also hit the country’s energy sector.
The Saudi oil ministry said on Sunday that it has shut down about 1,000 oil wells in order “to restore power and restore the energy sector.”
Saudi Arabia’s oil output fell 1.4 percent in November, to 6.4 million barrels per day (bpd), compared to 7.4 bpd in the previous month, when Saudi Arabia resumed production from its damaged wells.
The kingdom’s economy is heavily dependent on oil exports and the shutdown has put a strain on the country.
It is currently operating at around $80 a barrel and is expected to reach $100 by the end of the year.
Saudi King Salman is trying to address the crisis with a strategy to boost domestic production.
The kingdom has already cut its crude production to below the international price, from $100 a barrel last year, and the price has risen in the past few weeks.
Saudi Arabia hopes to double output from its current level of 3.5 million barrels a day by the start of the new year.
The Saudis are now working on a plan to restart production at about 6 million barrels, which they hope to achieve in the first half of next year.
But with the shutdown, the country could face further price volatility and the impact could be felt by the world economy, especially in oil-rich countries like the United States, Europe and India.