Saudi Arabia is not prepared to face the consequences of attacks on its oil facilities, an international energy expert said.
Nick Butler, head of the Institute for Policy at King's College London, justified the Saudi lack of equipment to deal with obstacles to oil production following the Houthis' attacks on oil facilities in eastern Abqaiq on Saturday.
In an article in Britain's Financial Times, he said the dismissal of former energy minister Khaled al-Falih and Saudi Aramco's president was a "catastrophic mistake" and a "sign of erosion" of the state's role as a source of stability in the Middle East.
Butler praised al-Falih's abilities as "an exceptional person." Under his leadership, Aramco confirmed its position as the most efficient producer among OPEC oil companies.
Although al-Falih is an experienced engineer who joined Aramco 40 years ago, the role of the general public in Saudi Arabia remains very limited. They work to satisfy the leadership, Butler said.
The writer said that Saudi King Salman bin Abdul Aziz is too weak to tighten his grip on power, which made those public subject to the decisions of Crown Prince Mohammed bin Salman "unfair", "there is no room for any opposition," as he put it.
The Saudi crown prince appointed his half-brother Abdul Aziz bin Salman as energy minister instead of al-Falih. Although the new minister has long experience in the Ministry of Energy, he did not directly control Aramco, according to the writer.
Powers of the Crown Prince
In his article, the international expert pointed out that the presidency of Aramco was entrusted to Yasser Al-Rumayyan "who lacks experience in the field of oil, but he heads the sovereign wealth fund" in Saudi Arabia.
Butler said the change was related to the sale of part of Aramco's shares through an initial public offering (5% of the company's shares), while the Public Investment Fund would acquire 95% of the shares.
The article argues that new shareholders are unlikely to have access to any information and will have no influence on the company's decisions, though some will undoubtedly be adventurous.
The biggest danger facing oil markets lies in the extent of Saudi revenge on Iran for accusing it of supporting the Houthi group.
But it is fear of such a conflict under the "unstable" nature of the Saudi regime led by the crown prince that will lead the oil markets in the next few days, Butler said.
Al-Faleh's dismissal from the energy ministry was due to the fact that he cracked the truth in the face of power on these issues, but the "value of truth" remains "very limited" in Saudi Arabia, he said.