France's Finance Minister Roland Lescure revealed on Wednesday that between 30 and 40 per cent of Gulf refining capacity has been damaged or destroyed by Iran's retaliatory strikes, leaving a shortage…
Damaged is as good as destroyed for the short term market. Much of this oil field equipment is pretty specialized and considering the widespread damage, both materials and skilled labor for repairs will be in short supply. Even if hostilities ended tomorrow, it will probably take 9-12 months to restore output from all damaged facilities, and outright destroyed ones may never ever come back online.
Damaged is as good as destroyed for the short term market. Much of this oil field equipment is pretty specialized and considering the widespread damage, both materials and skilled labor for repairs will be in short supply. Even if hostilities ended tomorrow, it will probably take 9-12 months to restore output from all damaged facilities, and outright destroyed ones may never ever come back online.