• 4 minutes "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 7 minutes Trump will be holding back funds that were going to W.H.O. Good move
  • 11 minutes Washington doctor removed from his post, over covid
  • 15 minutes Which producers will shut in first?
  • 17 mins Cpt Lauren Dowsett
  • 23 mins Charts of COVID-19 Fatality Rate by Age and Sex
  • 45 mins Wouldn't fall in demand balance it out?
  • 3 hours 80's GOM Oil Fam: Mid-80's Oil Glut Part Deux?
  • 19 mins Why Trump Is Right to Re-Open the Economy
  • 2 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 11 hours Death Match: Climate Change vs. Coronavirus
  • 9 hours Free market or Freeloading off the work of others?
  • 4 hours Its going to be an oil bloodbath
  • 14 hours Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 9 hours Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 10 hours ‘If it saves a life’: Power cut to 1.5 million Californians

Saudi Arabia’s Trillion Dollar Gamble Could Be A Bust

Oil

Back in March, Saudi Aramco split from Royal Dutch Shell in a $2.2 billion breakup, leaving the Saudi Arabian government as the sole owner of the largest US oil refinery. Port Arthur, Texas’ Motiva Enterprises LLC could be just the beginning of a Saudi conquest of US oil as Aramco’s IPO--the largest in history--quickly approaches.

Saudi Aramco’s efforts to expand downstream investment and international joint ventures are not news, but the latest developments are a marked acceleration of the company’s aggressive strategy to move into foreign markets and evolve into a more integrated, diversified, and powerful company.

In recent years, the company has also been busy acquiring companies in China, Indonesia and Malaysia - a large part of Aramco’s core market. According to numbers published by Energy Digital, Aramco intends to double its global refining capacity, increasing from its current 5.32mn barrels per day (mb/d) to 10-12 mb/d, and to increase its global petrochemicals capacity by a huge margin from 12mn tonnes per year to 34mn tonnes.

The escalating efforts by Saudi Aramco to diversify, globalize, and cash in with a record-breaking Initial Public Offering are also making waves on a domestic level. For many investors eyeing next year’s IPO, it’s extremely unsettling that Aramco practically gifts its oil domestically at $6 a barrel--that’s 87 percent less than international prices. The exaggerated subsidy,…




Oilprice - The No. 1 Source for Oil & Energy News