for Saudi Aramco
The possibility that Russia may soon own refineries in the U.S. if Venezuela’s PDVSA defaults on its loans from Rosneft has pushed the risks of foreign-owned energy assets in the U.S. into the spotlight. As of now, some 30 percent of U.S. refining capacity is owned by foreign companies.
Speaking at a major conference in Houston, the Saudi Energy Minister said there is cause for “cautious optimism” for the industry but warned against “irrational exuberance.”
Plans to open up the Kingdom to outside investors will continue to cause fissures within the country, and may also bring about tensions within the OPEC cartel.
The UAE recently announced that it rolled out draft standards for fuel economy in order to reduce emissions. This action follows the emirate's Gulf neighbor Saudi Arabia, which implemented similar measures earlier this year.
“The market is doing quite well by itself and we will be very gentle in our approach so we do not shock the market. Our concern is for the long-term stability of the market,” said Saudi Energy Minister Khalid Al-Falih. “We don’t want oil shocks in any way. In the long term, we want to encourage investment.”
Bloomberg has just released an expansive interview following a five hour conversation with Saudi Arabia’s Deputy Crown Prince, Mohammed bin Salman, regarding the country’s strategy over the coming years. Here are the key takeaways.
Among other changes to its economy, Saudi Arabia is likely to privatize some of Saudi Aramco's downstream assets within a year, according to Jean-Francois Seznec.
Any deal between Russia and OPEC will have to overcome a host of legal, technical, and geopolitical challenges.
Producing oil from shale is quicker than from conventional sources, but Saudi Arabia is still the world’s only “swing producer.”
Due to the increasing integration of operational technology systems, the oil and gas industry is more vulnerable to cyberterror than ever before.