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Saudi Aramco Still Most Profitable Oil Company, Despite Lower Production

Saudi Aramco Still Most Profitable Oil Company, Despite Lower Production thumbnail

Despite OPEC+ output reductions and the extra 1 million barrels per day (bpd) voluntarily cut by Saudi Arabia that lowered the Kingdom’s crude oil output to around 8 million bpd in February and March (the lowest level since 2008), Saudi Aramco remained the most profitable oil company in the world in the first quarter (Q1) of this year, surpassing the five major international oil companies (IOCs) combined.

It is true that oil companies have benefited from the higher oil prices and refining margins in Q1 2021, but Aramco’s net profit for that period was $21.7 billion, while the consolidated net profits from the five major IOCs (ExxonMobil, Chevron, Shell, BP, and Total) were $17.8 billion.

Also, Aramco has successfully achieved higher cash dividends of $18.8 billion while the comparable figure for the five major IOCs combined was $10.8 billion.

Looking back at their 2018 and 2019 financials, Aramco was also the most profitable and achieved higher revenues than the other leading IOCs combined.

The financials for last year were different to all the IOCs, who registered huge losses, with Aramco achieving net income of $49.07 billion compared to $88.2 billion in 2019.

Although net income was down due to the impact of the coronavirus disease (COVID-19) pandemic on oil demand, it was still beyond expectations in light of the low oil prices and steep fluctuations in demand throughout 2020. The average Brent crude price last year was $42 per barrel, compared to $64 in 2019, which has highlighted the company’s incomparable flexibility.

Despite all the challenges that the world has faced during the COVID-19 pandemic, Aramco has achieved an outstanding performance on all fronts.

The big losses made by IOCs in 2020 do not bode well for future investment in key energy infrastructure, as they look to slash expenditure across operations and exploration.

However, this has not been the case for Aramco as it kept its major energy infrastructure going, despite the low prices, emphasizing the primary role of Saudi Arabia as the only swing producer and the most reliable oil exporter.

Aramco’s resilience in facing challenges with operational flexibility and financial agility means its investors are in safe hands and its customers enjoy the most reliable barrel, even during crises.

This operational flexibility is indeed unique, allowing the world’s largest oil company to rapidly increase or decrease production as circumstances dictate.

Such operational flexibility was evident when Saudi Aramco swiftly cut production from a historical peak of 12.3 million bpd in April 2020 to about 7.5 million bpd in June, within only two months, while other large producers would have taken longer periods to adjust only 200,000 bpd.


11 Comments on "Saudi Aramco Still Most Profitable Oil Company, Despite Lower Production"

  1. Cloggie on Thu, 20th May 2021 2:16 am 

    “Saudi Aramco Still Most Profitable Oil Company”

    No wonder if you sit on top of and can milk the largest oil field in the world by far:

    Daily production nevertheless in steep decline since 2008:

    The reserves are a bit of a state secret. Aramco claimed in 2018 it had 60 billion barrels left in Ghawar.

    If you extrapolate from the first graph a current daily production of 3 mbd, then 60b/3m = 20,000 days or 54 years, assuming production rate would be constant, which is BS.

    More realistic is linear curve fitting, for which I used a letter from the Dutch tax office, held against my computer screen, to verify that the horizontal axis will be hit (production = 0 mbd), 20 years from now.

    But even that maybe too optimistic, as many oil analysts think that that figure of 60 million barrels maybe an exaggeration.

    Let’s use our linear extrapolation exercise for an alternative calculation:

    2021: 3 mbd
    2041: 0 mbd

    Total reserves is the area under the line, which is 20 * 3 / 2 = 30 billion barrels.

    That’s far more realistic than 60 billion.

    We’re back at 2007, when the peak oil movement was at its, em, peak. Thanks to fracking, peak conventional oil was masked and gave us a decade or so delay of execution.

    The only difference with 2007 is that in 2021 the renewable energy transition has progressed remarkably.

    Well, in Europe that is.

    In America, you only have makati, DT and empire dave types, who opine that hydrogen is NOT a source of energy (which is correct, but for the rest completely irrelevant) and that “you need oil for everything”, which is also irrelevant and a blatant example of “kilowatt-hour racism”, so rampant in the present day USA:

    “Yabut… To Get Wind Power You Need Fossil Fuel”

    The reality is that a kWh is a kWh, irrespective of its source and that in many cases a kWh of electricity is easier to handle than a stinking, noisy kWh from fossil fuel.

    The only advantage of a fossil fuel kWh is that the source of energy and storage happen to be the same thing, where electrickery is a weird form of energy, where electrons have to be on the move, which is somewhat contradictory to the very static concept of storage.

    No worries though, it is very well possible to convert surplus electricity into some form of chemical storage, like H2, NH3, methanol, borohydride, formic acid and a host of possibilities more, including storage in high-pressured air (CAES), or in extreme cold, or molten salt. The list goes on. The number of possibilities is almost endless. Essentially, we have a luxury problem of eliminating the less suitable options, in order to keep the best.

    And no, the renewable energy transition won’t be able to deliver the same amount of energy that fossil fuel did, not in the coming 2-5 decades anyway. And yes, the transition is going to be costly. How to pay for it? Well, by abstaining from things that are not essential. Like owning a car or having to fly over thousands of miles to places where you don’t belong, twice a year or more. Be content with the lights on, your wifi, your iPad, your CV-pump, power for your heat pump, coming from your PVT-panels and all the rest of it. These 18 month Covid were an excellent sneak preview of things to come. If I were in religion, I would say that the Gods in the Sky are preparing us for things to come.

    So, how to prepare? Get these solar panels installed on your roof while you still have money. Forget about buying a new car, not even an e-vehicle, finish your old one and if you have an average income, wait for autonomous driving to take off. Save your money for a heat pump instead. Replace all your devices with energy efficient ones, by carefully studying the energy label:

  2. Cloggie on Thu, 20th May 2021 2:33 am 

    “JENNI MURRAY: Why I’ll never get on a plane again”

  3. DT on Thu, 20th May 2021 7:37 am 

    Cloggie the key word here is “Possibilities”.

    “it is very well possible to convert surplus electricity into some form of chemical storage, like H2, NH3, methanol, borohydride, formic acid and a host of possibilities more, including storage in high-pressured air (CAES), or in extreme cold, or molten salt. The list goes on. The number of possibilities is almost endless.”

    Possibilities ARE endless. However practical cost effective build able solutions in the real world are few to none in place, at scale, at this time, to replace FF energy inputs.

  4. Cloggie on Thu, 20th May 2021 7:57 am 

    “Possibilities ARE endless. However practical cost effective build able solutions in the real world are few to none in place, at scale, at this time, to replace FF energy inputs.”

    Let’s cut the crap.

    Answer the question: where do you think you will get your energy from in the future, after oil?


  5. DT on Thu, 20th May 2021 8:22 am 

    Assuming I live another 20 years oil will still be around, that is unless something like human caused climate disruption throws the growing seasons so out of whack that the food system collapses, oil, solar panels or whatever will not matter.

  6. Adriano on Thu, 20th May 2021 9:25 am
    clog, read it right, then you can tell me

  7. makati1 on Thu, 20th May 2021 4:32 pm 

    Absolutely correct, DT. Cloggie only thinks in certainties and he is certain his techie dreams will come true. FFs are here until the end. ^_^

  8. GodWantMeToWriteThis on Fri, 21st May 2021 5:06 pm 

    I am just a conduit for GOD. I write a comment when he asked me too.So one day GOD told me to go watch porn. So I did what he asked.

    Well, the porn industries is a really a mirror into Satan mind. Satan really worship the body and sexual lust.

    Go to pornhub_com and search for this MISTRESS STRAP ON SADO BITCH – Scene 1. Watch from 3:00 to 3:20. These are two reptilians having sex. Notice the inverted cross the nun is wearing, it means that she worship the devil. Look at her hand too. Notice how enthusiastic she is as dominating him. Look like she is a Satan worshipper and love inflicting pain on the male. The male is also a reptilian and you can see his green dick
    at 41:42. You can clearly see the green reptilian dick.

    Another thing, I see the children of Satan everywhere when I go grocery shopping. They showed me their holographic device. The one I saw was located on top of
    ear. The size of a BIC lighter. This guy is right,, they can talk to each other and they
    know once you been converted to GOD. After all, earth is the creation of the devil. Look at their eyes, and hands, you sould be able to tell. Some have black eyes.

  9. GodWantMeToWriteThis on Fri, 21st May 2021 5:23 pm 

    This guy has good stuff regarding Satan.

  10. GodWantMeToWriteThis on Fri, 21st May 2021 5:54 pm 

    GOD message is really clear. I should help him return the soul to heaven by not contributing anything to this current civilization and accelerating the collapse of the electrical grid and international trade. I do my part and good will do his part by cooling down the earth. We both working together on this task.

    Record Cold and Late-May Snow Sweeps the Western U.S., + more MSM Obfuscation

    By not helping Satan and refusing to work with governments world wide, I am commiting suicide and returning my soul to heaven,

  11. GodWantMeToWriteThis on Fri, 21st May 2021 6:03 pm 

    You fucked it up Satan. What are you going to do after the rapture, once all the GOD living people are dead. You are going to rule over who, you are going to torture, how are you going to feed yourself once the earth is population is only made of Satan worshiping people. I would like to know. Satan is just a stupid loser with no longer term vision.

    The serpent eating his tail represent the failure that Satan is. Satan life philosophy is to kill himself and his creation. What a fucking loser Satan his. He design a system that assure his own destruction. What a fucking loser he is. Satan is only good at worshiping himself, therefore leading to his own destruction. Really funny when you think about it.

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