• 4 minutes Why Trump will win the wall fight
  • 9 minutes Climate Change: A Summer of Storms and Smog Is Coming
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 13 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 3 hours Ayn Rand Was Right
  • 1 min Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 2 hours Oil imports by countries
  • 41 mins Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 4 hours Sanctions or Support: Despite Sanctions, Iran's Oil Exports Rise In Early 2019
  • 1 hour Solar and Wind Will Not "Save" the Climate
  • 3 hours NZ Oil, Gas Ban Could Cost $30 Bln
  • 23 hours Expected Breakdown: Israel-Central Europe Summit Canceled After Polish Pullout
  • 16 hours Regular Gas dropped to $2.21 per gallon today

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,…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



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