Terrorist-controlled drones dropped explosives on several oil refineries in Saudi Arabia. This shut down oil production for some Saudi oil producers and disrupted oil supplies around the world. The damage will take months to repair, and oil production will be reduced for the foreseeable future.
How Will This Affect Us?
This has already translated into higher gasoline prices here at home. Some regions have seen a twenty to thirty cent rise in prices. While the Saudis struggle to repair the damage to their refineries, many fuel-related prices will remain higher than usual.
Whenever oil prices rise, it directly affects transportation costs. This includes airfare, gasoline prices, and the cost of transporting goods throughout the world. Groceries, household items, and heating costs will probably rise to reflect the increase in transportation costs.
What Can I Do?
It pays to tighten the belt, figuratively speaking. We can streamline our budgets to allow for higher gas prices. This may mean replacing some expenses with cheaper alternatives. We can rearrange other daily routines, as well. Travel plans may change for more local fare. Reserving airline tickets as early as possible will yield the highest savings on those. Buying local products will save on transportation expenses. Practice fuel-saving driving habits that save gas. These include observing slower speeds with a lighter foot on the brake pedal. Ridesharing can cut commuting costs in half. Turn down the heat by one or two degrees. Carry a sweater with you as the weather cools. Consider which items you can buy in bulk or on sale.
Some Saudi oil production will be back online within two months. However, they don’t have enough repair equipment to handle an incident on this scale. Initial reports indicate that it may take them at least six months to fully recover from this attack. Since the attack probably caused the disruption the terrorists anticipated, there may be further attacks, as well.
President Trump is considering whether or not to open up American oil fields for further production. In the meantime, Americans can hope that prices here at home will not become too extreme. Nevertheless, wisdom suggests prudence on individual and national levels.