• 21 hours Shell Oil Trading Head Steps Down After 29 Years
  • 1 day Higher Oil Prices Reduce North American Oil Bankruptcies
  • 1 day Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 1 day $1.6 Billion Canadian-US Hydropower Project Approved
  • 1 day Venezuela Officially In Default
  • 1 day Iran Prepares To Export LNG To Boost Trade Relations
  • 1 day Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 2 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 2 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 2 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 2 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 2 days Santos Admits It Rejected $7.2B Takeover Bid
  • 3 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 3 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 3 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 3 days Lower Oil Prices Benefit European Refiners
  • 3 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 4 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 4 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 4 days OPEC To Recruit New Members To Fight Market Imbalance
  • 4 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 5 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 5 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 5 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 5 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 5 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 8 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Alt Text

Are Oil Markets Immune To U.S. Shale?

Oil prices have maintained their…

Alt Text

EU Aims To Reform World’s Biggest Carbon Market

The European Union is divided…

Alt Text

New Battery Design Could Crush Tesla

Elon Musk’s old rival, Henrik…

Jared Anderson

Jared Anderson

Mr. Anderson recently worked as a Senior Adviser to the Rapidan Group, an energy consultancy, prior to which he helped launch an energy media and…

More Info

Energy Industry Deals Expected To Be Struck During Trump’s Saudi Visit

Trump

President Trump’s first official overseas trip to Saudi Arabia is designed to address numerous critical security, economic, religious, and social issues. And while cooperation in the fight against terrorism is at the top of the agenda – with an expected approximately $100 billion arms deal announcement – energy business deals struck between US and Saudi interests could have powerful oil and gas market implications in both countries.

The Trump team will attend three major summits: The Saudi Arabia and United States summit; the Gulf Cooperation Council (GCC) and United States summit; and the Arab Islamic American summit. In addition to these high-powered meetings, the first Saudi-US CEO Forum will be held in Riyadh tomorrow. “More than 50 U.S. companies, 40 Saudi companies and 9 global companies will attend the forum” according to the Saudi Press Agency.

The Financial Times reported that in addition to leadership from some of the largest US banks and private equity firms who will discuss Saudi Aramco’s upcoming IPO, several major energy industry players will also travel to the kingdom, including GE, Dow Chemical, Schlumberger, Halliburton, Weatherford, Nabors, Rowan Companies, KBR, Jacobs Engineering Group and McDermott International.

A host of potential investment partnerships will be on the table. Major infrastructure development in the U.S. and Saudi Arabia will be discussed. The Saudi’s sovereign wealth fund is expected to announce roughly $40 billion of US infrastructure spending. Part of that could go towards expanding the Saudi’s U.S. refining and marketing activities. National Oil Company Saudi Aramco acquired full control of Motiva Enterprises from Shell earlier this year. Motiva is the largest refining complex in the US with nameplate capacity of 600,000 barrels per day. The company also has a long-term license to use the iconic “76” gasoline brand and recently announced plans to expand gasoline sales under the 76 name into key Gulf Coast and East Coast markets, including Washington DC. Related: Oil Prices Rise As Most OPEC Members Back Deal Extension

Back in Saudi Arabia, US oil services companies are reportedly being tapped to help the kingdom develop its own domestic oil field services industry in an effort to procure two-thirds of its oil and gas sector development goods and services locally. This is part of Saudi Vision 2030, a major economic reform initiative designed to diversify sources of government revenue away from oil.

The arrangement could be a mixed blessing for US service companies that sacrifices longer-term business opportunities for short-term gain, but the details will become clearer as deals are announced. In fact, the entire afternoon of the Saudi-US CEO Forum is dedicated to “MOU [Memorandum of Understanding] Signatures witnessed by the Custodian of the Two Holy Mosques & the U.S. President,” which clearly indicates preliminary deals are expected to be struck.

By Jared Anderson for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Gamechanger on May 20 2017 said:
    Is this another ISIS in the making.. Islamic Army will be the t xt face of ISIS like Organisation. Funded by Saudi Managed by Pakistan or Terroristan..
  • Naomi on May 21 2017 said:
    Saudis are diverting oil service and refinery employment from highly educated westerners to Saudi citizens. Venezuela did that. Oil production dropped like a rock.

Leave a comment




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