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Page added on March 6, 2018

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Saudi Aramco CEO Promises IPO And No End To The Age Of Oil

Consumption

The IPO of Saudi Aramco is “proceeding very well,” CEO Amin Nasser told the crowd at the CERAWeek conference here in Houston today. He didn’t elaborate much, saying that the ultimate decision to take the plunge would lay with the Saudi government — namely Crown Prince Mohammed bin Salman. A domestic listing on Riyadh’s Tadawul exchange would be the easiest avenue, though sources close to the Saudis say there’s a real desire for shares to trade in New York, London or Hong Kong.

Nasser insisted that the world is far from seeing Peak Oil demand. “Oil will maintain its key role in the global energy mix for the forseeable future,” he said, given that 99% of all vehicles on the road remain powered by internal combustion engines.

To meet that need, said Nasser, the industry must invest $20 trillion in oilfield capex over the next 25 years. While in just the next five years, Nasser said, the industry will need to build out 20 million barrels per day of oil production capacity, both to balance out natural declines in mature fields (on the order of 5% per year, worldwide) plus provide for demand growth. (Aramco, for context, maintains sustainable production capacity of 12 million bpd.) That these future investments will happen is not guaranteed, he said. They will “only come if investors are convinced that oil will be allowed to compete on a level playing field, that oil is worth so much more, and that oil is here for the foreseeable future,” he said.

That’s a position increasingly out of step with the publicly traded oil giants like Exxon, Shell, BP and Total, who not only admit that the world must transition to a future of low-carbon energy, but are actively investing in alternative solutions. BP in its new 2018 Energy Outlook last month included a baseline scenario that sees global oil demand peaking as soon as the mid-2030s.

Nasser’s not shy in his assertion that any obituaries on the age of oil are premature. “We must challenge mistaken assumptions about the speed with which alternatives will penetrade markets,” he said.

Indeed, Nasser and Aramco have no choice but to challenge that assumption — they’ve got an IPO to sell.

forbes



6 Comments on "Saudi Aramco CEO Promises IPO And No End To The Age Of Oil"

  1. Boat on Tue, 6th Mar 2018 7:06 pm 

    Mm

    OMG the chief cheese lays out the truth making any of your previous links by the underlings obsolete. What you call the peer-reviewed stopper. The world’s foremost Saudi oil expert.

  2. MASTERMIND on Tue, 6th Mar 2018 7:11 pm 

    Boat

    Oil discoveries in 2017 hit all-time low –Houston Chronicle
    https://www.chron.com/business/energy/article/Oil-discoveries-in-2017-hit-all-time-low-12447212.php

    Saudi Arabia’s Energy Minister Warns of World Oil Shortages Ahead
    https://www.wsj.com/articles/saudi-minister-sees-end-of-oil-price-slump-1476870790

    Saudi Aramco CEO sees oil supply shortage coming as investments, discoveries drop
    https://www.reuters.com/article/us-aramco-oil/aramco-ceo-sees-oil-supply-shortage-as-investments-discoveries-drop-idUSKBN19V0KR

    UAE warns of world oil shortages ahead by 2020 due to industry spending cuts
    http://www.arabianindustry.com/oil-gas/news/2016/nov/6/more-spending-cuts-as-uae-predicts-oil-shortages-5531344/

    Halliburton CEO says oil will spike due to oil shortages by 2020 after Industry Cuts
    https://www.bloomberg.com/news/articles/2017-07-12/halliburton-sees-2020-oil-spike-after-industry-cuts-2-trillion

    IEA Chief warns of world oil shortages by 2020 as discoveries fall to record lows
    https://www.wsj.com/articles/iea-says-global-oil-discoveries-at-record-low-in-2016-1493244000

    2020s To Be A Decade of Disorder For Oil
    https://oilprice.com/Energy/Energy-General/2020s-To-Be-A-Decade-of-Disorder-For-Oil.html

    Don’t ever call me out again you chump!

  3. Boat on Tue, 6th Mar 2018 7:21 pm 

    Mm

    I hope your not beheaded for blasphemy. The ruler that could buy and sell all your experts a hundred times over has spoken.

  4. MASTERMIND on Tue, 6th Mar 2018 7:55 pm 

    Boat

    The End of the Oil Age is Imminent!

    Recently, the HSBC oil report stated that 80% of conventional oil fields were declining at a rate of 5-7% per year. This means that there will be an oil shortage of ~30 million barrels per day by 2030 and ~40 million barrels per day by 2040.
    http://www.scribd.com/document/367688629/HSBC-Peak-Oil-Report-2017

    What is mentioned far less often is that annual oil discoveries have lagged annual production since the 1980s.
    https://imgur.com/a/6dEDt

    Now, this problem has nothing to do with the recent decline in the oil price, which started in 2014. This has been an on-going problem for the past 30 years. Now, the IEA is predicting oil shortages by ~2020 due to declining exploration.
    https://www.wsj.com/articles/iea-says-global-oil-discoveries-at-record-low-in-2016-1493244000

    Here, the IEA blames this problem on the low oil price. But, this problem started in the 1980s. The problem is geological: we are running out of conventional cheap oil. Shale and tar sands are not the answer, either. Those resources are far too expensive, compared to conventional oil, because the global economy is based on cheap conventional oil. Expensive oil is not a replacement for cheap oil.

    Based upon the HSBC report and the IEA, the End of Oil Age will start around ~2020: there will be a dramatic economic depression due to exhaustion of cheap oil. This will cause a global economic collapse.

  5. rockman on Wed, 7th Mar 2018 3:47 pm 

    So he thinks there will be no “end to the Oil Age”. And his response is to sell off a portion of his “Oil Age” machine that is keeping his people alive.

    Doesn’t seem to make much sense IMHO.

  6. MASTERMIND on Wed, 7th Mar 2018 4:17 pm 

    The collapse of Saudi Arabia is inevitable
    http://www.middleeasteye.net/columns/collapse-saudi-arabia-inevitable-1895380679

    Saudi Arabia’s Energy Minister Warns of World Oil Shortages Ahead
    https://www.wsj.com/articles/saudi-minister-sees-end-of-oil-price-slump-1476870790

    Saudi Aramco CEO sees oil supply shortage coming as investments, discoveries drop
    https://www.reuters.com/article/us-aramco-oil/aramco-ceo-sees-oil-supply-shortage-as-investments-discoveries-drop-idUSKBN19V0KR

    Saudi Arabian oil reserves are overstated by 40% – Wikileaks
    https://www.theguardian.com/business/2011/feb/08/saudi-oil-reserves-overstated-wikileaks

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