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Page added on October 10, 2016
Saudi Arabia Is Buying Up America’s Oil Assets
Saudi Arabia is quietly amassing quite a portfolio of American energy assets.
State-owned Saudi Aramco is already co-owner, with Royal Dutch Shell , of Motiva, the largest U.S. refinery. Under an already signed agreement, in April 2017, Aramco will take full ownership of the most valuable Motiva assets. Now comes news that Motiva is the leading candidate to purchase the Lyondell Basell Refinery in Houston. This would give Saudi Arabia control of two major Texas refineries proving, once again, that American energy independence is impossible.
Saudi Arabia is not the only country with energy assets in the U.S. and close energy ally, Canada, but Saudi Arabia’s activities present a good case study because of its efforts at global diversification within the energy industry. In the free market of the United States, foreign companies can invest in and even purchase or create energy assets on American shores. Such assets can include refineries and petrochemical plants; oil, gas, and coal rights; alternative energy startups; and utilities. Countries and national oil companies like Saudi Arabia and Saudi Aramco do just that.
Ellen R. Wald ,
Contributor
I cover energy and geopolitics with a Middle East and US focus.
Opinions expressed by Forbes Contributors are their own.
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Saudi Arabia is quietly amassing quite a portfolio of American energy assets.
Realistically, the U.S. should focus on achieving energy security.
Saudi Arabia is quietly amassing quite a portfolio of American energy assets. State-owned Saudi Aramco is already co-owner, with Royal Dutch Shell , of Motiva, the largest U.S. refinery. Under an already signed agreement, in April 2017, Aramco will take full ownership of the most valuable Motiva assets. Now comes news that Motiva is the leading candidate to purchase the Lyondell Basell Refinery in Houston. This would give Saudi Arabia control of two major Texas refineries proving, once again, that American energy independence is impossible.
Saudi Aramco CEO Amin Nasser (L) talks with Total CEO Patrick Pouyanne (R) during a press conference following a meeting of the Oil and Gas Climate Initiative (OGCI) in Paris on October 16, 2015. ERIC PIERMONT/AFP/Getty Images
Saudi Arabia is not the only country with energy assets in the U.S. and close energy ally, Canada, but Saudi Arabia’s activities present a good case study because of its efforts at global diversification within the energy industry. In the free market of the United States, foreign companies can invest in and even purchase or create energy assets on American shores. Such assets can include refineries and petrochemical plants; oil, gas, and coal rights; alternative energy startups; and utilities. Countries and national oil companies like Saudi Arabia and Saudi Aramco do just that.
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Saudi Aramco Energy Ventures LLC is a fund that invests in global energy and technology companies and in other funds that invest in such companies. Its newest U.S. investment is in Zahroof Valves, which produces valves for gas compressors. Siluria Technologies, another U.S. investment, develops technologies to convert natural gas to liquid. Through investment in other funds like Braemar Engery Ventures, it reaches more global and U.S. assets.
16 Comments on "Saudi Arabia Is Buying Up America’s Oil Assets"
Kenz300 on Mon, 10th Oct 2016 11:07 am
The wind and sun are not foreign owned.
We can all be energy independent if we transition to safer, cleaner and cheaper alternative energy sources.
Apneaman on Mon, 10th Oct 2016 2:32 pm
How can the KSA be “quietly amassing quite a portfolio of American energy assets.” if forbes and the entire internet can read about it? Don’t sound too quiet to me.
HARM on Mon, 10th Oct 2016 3:38 pm
@apneaman,
It’s “quiet” because it’s not on loop on the major idiot-box networks or page 1 on Drudge, Huffington Post, InfoWars or wherever it is that most Uh-murikans get their daily “news”. Just another page 30 byline that gets drowned about by the river/sewer of news on P**ssygate, the debates, etc.
On the other hand, the KSA buying a U.S. refinery is probably not game-changing news anyway, though it does –as the author points out– belie the myth of “energy independence”.
curlyq on Mon, 10th Oct 2016 4:17 pm
Howdy all regulars here, I am still having login problems, any one else here with similar complications ?
curlyq3 on Mon, 10th Oct 2016 4:20 pm
I always end up at the board index page ? Oh woe is me.
curlyq3
Dredd on Mon, 10th Oct 2016 4:23 pm
Not to worry, “parts is parts” (The Damaged Global Climate System – 6).
Apneaman on Mon, 10th Oct 2016 4:32 pm
HARM, I could see how CNN would not run the story since the API seems to be their biggest sponsor lately – “I’m an energy voter!” by golly. I’m not sure about the others as the only time I watch the TV is at other people’s houses. I’m sure a story like this one would either confuse the sheeple who believe the energy independence narrative or just go over their heads. Similar to the MSM not putting Hurricane Matthew into it’s climate change context. They will mention all the different records that have been broken, but rarely without the “why?” Methinks the API does not need to tell CNN that if they start bringing up all the AGW connections and context they will pull their ads. There are thousands of unspoken agreements in every society. For example, no one ever had to tell me not to go around grabbing women’s pussy’s everytime my dick got hard. By observing societal norms I learned to wait until you get at least 3 strong drinks in them before you attempt that move or else become really rich and powerful and then you will have near impunity.
Sissyfuss on Mon, 10th Oct 2016 6:21 pm
Curly, you need to upgrade from your Radio Shack TRS-80.
curlyq3 on Mon, 10th Oct 2016 6:50 pm
Sissyfuss, I suspect you have at least as much gray hair as I do to even know about a TRS-80!
or maybe you have visited a technology museum recently?
curlyq3
Davy on Mon, 10th Oct 2016 7:04 pm
My dad had the original Apple. I still remember him with that screen glow playing battleship and sipping on a bud light and chain smoking Marlboro reds. Remember back when you could chain smoke in the house around your kids and not go to jail for child endangerment! I was the beer gofer.
Anonymous on Mon, 10th Oct 2016 7:51 pm
“This would give Saudi Arabia control of two major Texas refineries proving, once again, that American energy independence is impossible.”
LOL, it was never possible to start with. ‘Saudis’ never had anything to do with it. The only thing that statement proves is amerikans love them their fairy tales. Besides, if the ‘sauds’ control some of those rusty, explosion prone texas refineries, gota consider. Who controls the ‘sauds’, who prints all their money. Who provides them all their weapons, and trains their military and secret services how to most efficiently crush any challenges to ‘saud’ rule?
I think forbes can sleep easy. The uS is in no danger from its fundy, head chopping saud puppets owning some refineries in ‘texas’. Forbes hysterics is even funnier when you consider the ‘sauds’ have been buying uS assets since the 70s, lol. I guess no told forbes editors about that.
But I thought it was Japan that was supposed to buying amerika wholesale. Or was it China? Lost track. Does this mean the Kock Brothers and rex tillerson will be out of a job soon?
Im guessing not.
shortonoil on Mon, 10th Oct 2016 7:59 pm
SA has $630 billion remaining in their SW. If they let a few million starve to death they will probably have enough left over to buy EXXON; market cap $352 billion.
Boat on Mon, 10th Oct 2016 8:19 pm
This is what happens with capitalism. You can buy shyt the world over. NWO in action. If your not a cooperating partner and cause tension to this group you get sanctioned. N Korea and Russia come to mind. Like in whack a mole, sanctions mean don’t raise your head. Putin seems like he wants to get whacked. By a woman to boot.
rockman on Mon, 10th Oct 2016 10:35 pm
“It’s “quiet” because it’s not on loop on the major idiot-box networks or page 1 on Drudge, Huffington Post, InfoWars or wherever it is that most Uh-murikans get their daily “news”.”
Really! Is this is the best conspiracy theory you got??? LOL.
CNN March 2016: Saudis to take control of largest U.S. refinery
CNBC Sept 2016: Saudi Aramco-Motiva in lead to buy Lyondell’s Houston refinery: Sources
NY Times Sept 2016: Same story
Reuters March 2016: After Motiva split, Saudi Aramco aims to buy more U.S. refineries
Bloomber March 2016: Saudi Aramco, Shell Break Up 18-Year U.S. Refining Marriage
USA Today March 2016: Largest U.S. refinery now belongs to Saudi Arabia
WSJ March 2016: Shell, Saudi Aramco Plan to Break Up Motiva Partnership
Even f*cking Yahoo and Linkedin for Dog’s sake!!! LOL. Here’s a challenge: see how many outlets you can find that didn’t cover the story. I found it in a local paper in Charlotte, North Carolina. LOL
Yahoo March 2016: Shell and Saudi Aramco Plan to Dissolve Motiva Joint Venture
Linkedin March 2016: Dutch Shell and Aramco Dissolve Motiva,LLC Saudis now control the US’s largest and most modern oil refinery in Port Arthur Texas
GregT on Mon, 10th Oct 2016 11:35 pm
“This is what happens with capitalism. You can buy shyt the world over. NWO in action. If your not a cooperating partner and cause tension to this group you get sanctioned. N Korea and Russia come to mind. Like in whack a mole, sanctions mean don’t raise your head. Putin seems like he wants to get whacked. By a woman to boot.”
As per usual Kevin, not a friggin clue.
rockman on Tue, 11th Oct 2016 8:25 am
I’m not sure why anyone would be concerned about the KSA owning an American refinery. Compared to their big new refinery they own with China they can use to manipulate the market Motive gives the little leverage. The no have the same burden US companies have owning $billion+ assets overseas: they can’t “pick up the ball and go home” if they dislike the “cooperation” the receive from the local govt.
Folks should understand that the Motive upgrade was the largest expansion of US refining capacity. And employing thousands c of Americans it was paid for the the Dutch and Saudis. So where’s the downside? Especially since the oil price crash has dropped the refinery profit margin by half…or more?