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Page added on October 29, 2017

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‘Transformation Is Happening’: Saudi Aramco’s Chief on Future of Oil

‘Transformation Is Happening’: Saudi Aramco’s Chief on Future of Oil thumbnail

As Saudi Aramco, the Saudi national oil company, prepares for a widely-awaited initial public offering next year, its chief executive, Amin H. Nasser, is at the center of the planning.

Mr. Nasser has run Aramco, which produces more oil than any other company in the world, since 2015, and also oversees a wide range of joint ventures and investments. Along with the public offering, Aramco is also crucial to Saudi-led efforts to cut oil production in an effort to buoy prices. Brent crude, the international benchmark, was above $100 a barrel in 2014 before tumbling sharply. It is now at about $60 a barrel.

He spoke to Stanley Reed, a New York Times reporter, on the sidelines of an event sponsored by the Oil and Gas Climate Initiative, a partnership of 10 international oil companies that aims to reduce greenhouse gas emissions from the industry.

Their conversation, edited for grammar, style and clarity, follows.

Q. How will the privatization, or initial public offering, help Saudi Aramco

A. I think that privatization will definitely elevate, first, our international visibility as a company, our decision-making strategies, and also our achievements to date, and our governance. We know that we have excellent governance. A lot is not known about Saudi Aramco in terms of performance and all of that. So a lot of numbers can be shared later on, when we are listed.

You will see, first of all, a lot invested in technology to add more value. While everyone else cut technology spending, we are increasing our technology spending. We have eight technology hubs outside Saudi Arabia, and three inside Saudi Arabia, for a total of 11. Two of our technology hubs focus on better fuel formulation, less carbon footprint, more efficiency in car engines.

That all will hopefully, at a certain point, be shared with investors when we are listed.

Do you have any doubt that the listing will happen?

No, the listing is happening. You have confirmation from the Crown Prince this week, and our minister of energy and the minister of finance, all the stakeholders in the kingdom. It is happening in 2018.

Is Aramco working on renewables, like wind and solar power?

It is an important element of our strategy, to get into renewables. The kingdom, as I said, is looking at producing 9.5 to 10 gigawatts by 2023. So yes, we are interested and we are going to be a major player in renewables.

Are your customers unhappy about your holding back production to honor your agreements with OPEC and Russia?

We have a long-term relationship with our customers. They appreciate our reliability, the quality of our products. We value all of these relationships. We are always there when the market goes down and there are not enough resources, because we do have the spare capacity and we always meet our obligations.

There is a requirement placed on the company, based on the cuts by OPEC members and non-OPEC members, and we are abiding by that guideline. Our customers and partners understand that issue and because of the long-term relationship, it is not impacting our business transactions with them. They value the partnership that we have together.

Are you losing market share?

Everything is temporary. We are in a market that is very dynamic, and so far things are going well. We are meeting our obligations in certain markets. And there has been no issue so far.

Oil Prices: What to Make of the Volatility

Over the last two and a half years, the oil industry experienced its deepest downturn since at least the 1990s.

Are you happy with how the production cuts are working?

We are seeing inventories go down, which is great. Don’t forget, it was just an additional supply of 2 million barrels that brought the price from $100 to $40. Now, you don’t want the opposite to happen. You need to make sure there is ample supply.

You need to make sure inventories are balanced in a way where it meets the objectives of both the consumers and producers. So inventories are going down, prices are moving upward as a result of that balance between supply and demand.

Is there concern in Saudi Arabia that as renewables rise in importance, oil could become a stranded asset and lose its value?

We don’t subscribe to that thought about stranded assets. We think that oil will have more value in the future, and that rational development of our oil assets should be done reasonably over a long time.

If you look today, the requirement is 98 million barrels per day. Over the last three years, demand has grown by 5 million barrels per day. Add to that, a natural decline of 5 percent in existing fields. So you need to bring additional crude reserves to the market to meet the natural decline, and to meet the additional demand that we are going to see.

So I think oil will remain for decades to come. Transformation is happening, but it is going to take a long time.

NY Times



105 Comments on "‘Transformation Is Happening’: Saudi Aramco’s Chief on Future of Oil"

  1. Cloggie on Sun, 29th Oct 2017 4:12 pm 

    If even oil producer giants admit that renewables will take over, you know that renewables have won. The oil age is a dead man walking.

  2. Davy on Sun, 29th Oct 2017 4:26 pm 

    Sure, clogged, like they can be trusted. Lol, if someone
    told you anything to advance your agenda you believe it. What a nut case. You are a weenie who believes in whatever sounds good. Real men face life with the good and the bad. They are humbled by their own deficiencies. You and mad kat revel in your fantasy greatness. Pathetic

  3. Cloggie on Sun, 29th Oct 2017 5:07 pm 

    Pathetic clown and wounded animal Davy, who can’t except that his world is about to collapse, comes with his usual “rebuttal” with zero arguments, peppered with personal insults.

  4. MASTERMIND on Sun, 29th Oct 2017 5:50 pm 

    I can’t wait to visit a new Saudi entertainment hub! Hopefully they will be selling their classic ten inch beheader blades in the gift shops!

  5. MASTERMIND on Sun, 29th Oct 2017 5:59 pm 

    UC Davis Study: It Will Take 131 Years to Replace Oil with Alternatives (Malyshkina, 2010)
    http://pubs.acs.org/doi/abs/10.1021/es100730q

    University of Chicago Study: predicts world economy unlikely to stop relying on fossil fuels (Covert, 2016)
    https://www.aeaweb.org/articles?id=10.1257/jep.30.1.117

  6. fmr-paultard on Sun, 29th Oct 2017 6:43 pm 

    how do i get off this site? i’ve become prisoner here. it’s nonstop eurotard propaganda 24/x7. please supertards go to moscow. make it stop

  7. Anonymous on Sun, 29th Oct 2017 6:44 pm 

    They’re doing fine. Brent just hit $60. Prices are well above the levels of the 85-2005.

    On volume, they are pumping 10 million barrels a day (and constraining production from pumping more). Volume is having no problems from decline. Simmons died well before Saudis. Twilight in the hot tubs? Staniford looks like a moron for his TOD posts from 2007 and 2008. Same with James Hamilton.

  8. Boat on Sun, 29th Oct 2017 7:10 pm 

    mm,

    Think 80 percent renewables and climate change thinning out the herd. The idea of zero ff is silly. There will always be a huge plastics industry, some types of machinery etc. But products needing FF will be taxed at a high rate.

  9. MASTERMIND on Sun, 29th Oct 2017 7:41 pm 

    Boat…Solar and wind made up less then 2 percent of total energy production last year.And over a trillion dollars have been spent on this since 2000..Its a scam..It will never produce 10 percent…And once the oil shortages come the economy will collapse and the renewable dream will be washed away. Along with everything else..

  10. MASTERMIND on Sun, 29th Oct 2017 7:44 pm 

    Peak Oil may keep Climate Change in Check – Scientific American
    https://www.scientificamerican.com/article/peak-oil-may-keep-catastrophic-climate-change-in-check/

    Im sick of the climate fake doom on this blog…you have been duped.

  11. Boat on Sun, 29th Oct 2017 8:13 pm 

    mm,

    PUBLISHED JUNE 15, 2017
    The U.S. set a new renewable energy milestone in March, in data released Wednesday. For the first time, wind and solar accounted for 10 percent of all electricity generation, with wind comprising 8 percent and solar coming in at 2 percent.

  12. Apneaman on Sun, 29th Oct 2017 11:03 pm 

    MASTERMIND, thanks for that up to date article from 2013. There has only been over a trillion dollars worth in AGW Jacked disasters since. Just in the last 50 days the US has had 4 that could top a half trillion, but they’re just using CGI to make you think all that RECORD BREAKING flooding and wild fire are real and the hundreds of thousands of victims are all $5 hr crisis actors.

  13. deadlykillerbeaz on Sun, 29th Oct 2017 11:30 pm 

    The price fell through six floors because an extra 2 million barrels per day eliminated supply interruptions caused by conflict in a middle eastern country, which happens on a regular basis, more business as usual gone.

    The interruptions no longer had an effect on the supply chain with an extra 2 million barrels out there. The price was too high with an extra oil supply out there.

    The real cause for the transformation that’s been happening. Expensive oil triggered the development of shale oil and tar sands extractions. The truth be told, OPEC lost market share.

    Either natural gas or electric heating, both are superior to a fuel oil furnace.

    Electric heat is safe, quiet home heating. Just need baseboard electric heat with a thermostat to control the temperature.

    No danger of carbon monoxide poisoning with electric heat.

    Reduces demand for heating oil.

    So, at the end of the day, another 98 million barrels have been burned again today.

    Just as long as the beer truck tanks are full of diesel fuel and filled with beer, all is well.

    Tomorrow will be the same story, so don’t worry about the end of oil, it is going to take some time for that day to roll around.

    Happy days are here again.

  14. MASTERMIND on Sun, 29th Oct 2017 11:44 pm 

    Apneaman OMG the planet has warmed up by 1.5 degrees above average…holy shit the world is going to end soon. we are all going to boil to death. we should have stopped eating meat a long time ago like Leo wanted us to. so those damn cows would stop farting and belching causing so much global warming…

  15. Davy on Mon, 30th Oct 2017 5:35 am 

    Disturbing the carbon system of an entire planet is not something to take lightly. Whether this is can take down our civilization in the near term is yet to be determined but it might in combination with other civilization killers. Civilization was built on a stable climate it will surely end without it. Fake greens and techno optimist are fools to discount this with their fantasy solutions and wild optimism.

  16. Cloggie on Mon, 30th Oct 2017 6:13 am 

    Good news for US offshore wind development, the Dutch come to the rescue:

    https://deepresource.wordpress.com/2017/10/30/dutch-company-comes-to-the-rescue-of-us-offshore-wind/

  17. Cloggie on Mon, 30th Oct 2017 6:40 am 

    Golden Decade latest: IMF expects 2018 to be a boom year

    http://www.spiegel.de/wirtschaft/unternehmen/welthandel-laesst-konjunktur-auch-2018-boomen-a-1175545.html

    Germans largest per capita gold buyers:

    https://www.forbes.com/sites/greatspeculations/2017/10/11/germans-have-quietly-become-the-worlds-biggest-buyers-of-gold/#709a8be54f4e

    Official pecking order (tons):

    US – 8133
    Germany – 3381
    Italy – 2452
    France – 2436
    China – 1796
    Russia – 1460
    Switzerland – 1040
    Japan – 765
    Netherlands – 612
    India 558

    (What do you mean, Italy financial unstable?)
    Or:

    Europe – 11421
    US – 8133
    China – 1796
    Russia – 1460
    Japan – 765
    India 558

    Europa btw has 25 more countries that the 5 in the top 10. The European countries from 11-20 ranking have another 1500 ton

    https://en.wikipedia.org/wiki/Gold_reserve

  18. Davy on Mon, 30th Oct 2017 6:47 am 

    The master of illusions clogged uses a German site as a link without words referencing his assertions. He then goes no to show the gold pecking order? What does the clogged expect to prove by that? Can he give us a few paragraphs of what this means or is it just more like his military understanding of the world, you know 10MIL men under arms on the Korean peninsula.

  19. Davy on Mon, 30th Oct 2017 6:51 am 

    “Good news for US offshore wind development, the Dutch come to the rescue:”
    Clogged please reference your links with words to support your assertions especially if you intend to be a braggart. Suing your personal WordPress site as a legitimate third party is intellectually lame. You are talking out your ass again

  20. Cloggie on Mon, 30th Oct 2017 6:54 am 

    Clogged please reference your links with words to support your assertions especially if you intend to be a braggart. Suing your personal WordPress site as a legitimate third party is intellectually lame. You are talking out your ass again

    Take your mouse, click on the link and there you have your words.

    Reading time 30 seconds.

  21. Cloggie on Mon, 30th Oct 2017 7:19 am 

    The master of illusions clogged uses a German site as a link without words referencing his assertions.

    You really need new glasses. The essential words are above the link. Here they are again:

    IMF expects 2018 to be a boom year

    OK?

  22. Davy on Mon, 30th Oct 2017 7:35 am 

    words for the links clog. Show the wording for your links to support your bias assertions otherwise your are an intellectual bum.

  23. rockman on Mon, 30th Oct 2017 8:28 am 

    “I think that privatization will definitely elevate, first, our international visibility as a company…”. Right, the Saudi govt owning 95% of the Aramco stock should be classified as “privatization”. LOL.

    beaz – “Expensive oil triggered the development of…tar sands extractions.” A small modification: the first 1 million bbls per day of oil sands production was developed when oil prices were $35/bbl…or less.

  24. Dredd on Mon, 30th Oct 2017 10:52 am 

    Oil-Qaeda doods wear many hats.

    Their Stockholm Syndrome lackeys are definitely not colluding, they are simply conspiring (Dept. of Justice Conspiracy Theories – 2).

  25. shortonoil on Mon, 30th Oct 2017 11:16 am 

    In 1960 Saudi Arabia was producing oil for 25 cents a barrel. Now they are getting $52 and burning through their SWF at $135 billion a year. Selling it sounds like the best retirement plan that there is.

  26. Cloggie on Tue, 31st Oct 2017 6:45 am 

    Saudi-Arabia utility solar now for a record low price of 1.79 dollar cent/kWh.

    https://deepresource.wordpress.com/2017/10/31/new-utility-solar-price-record/

    Who cares about oil reserves.

    #TooCheapToMeter

  27. Davy on Tue, 31st Oct 2017 6:47 am 

    got a real link with the actual words showing your assertion? MR TOOLAZYTOEXPLAIN

  28. Cloggie on Tue, 31st Oct 2017 6:54 am 

    Despite a growing share of renewable energy in Germany, the grid is more stable than ever:

    https://deepresource.wordpress.com/2017/10/31/german-grid-still-reliable-despite-growing-renewable-energy/

  29. Cloggie on Tue, 31st Oct 2017 6:55 am 

    got a real link with the actual words showing your assertion? MR TOOLAZYTOEXPLAIN

    Try to explain to me in words what you don’t understand about:

    Saudi-Arabia utility solar now for a record low price of 1.79 dollar cent/kWh.

    #DumbAsADoorKnob

  30. Davy on Tue, 31st Oct 2017 8:00 am 

    Dumb Dutch, please show your link with the words to support your assertion otherwise you are talking out your ass. Your personal link is not legit.

  31. Davy on Tue, 31st Oct 2017 8:01 am 

    Show the beef dumb Dutch

  32. Cloggie on Tue, 31st Oct 2017 8:10 am 

    Your personal link is not legit.

    Why not, “huddled Davy”?

  33. Davy on Tue, 31st Oct 2017 8:50 am 

    Dumbndutch you are an extremist proselytizing. Do references properly or you are talking out ass

  34. Cloggie on Tue, 31st Oct 2017 8:57 am 

    Give an example, “you tired, you poor, you huddled Dave”, of how exactly my posts should look like to acquire your seal of improvement.

  35. Davy on Tue, 31st Oct 2017 9:08 am 

    Dumb n Dutch, Review Ape’s posts. I doubt you are up to his standards. You like being like bottom dwellers like mad kat.

  36. Cloggie on Tue, 31st Oct 2017 9:20 am 

    As usual spineless Davy choses the side of those who wants to destroy Davy and his country.

    Interesting that Davy for years praised the renewable energy posts I wrote. I fact, this week he announced that he has moderated his position and that he is now in favor of renewable energy (Davy is a bit of a follower).

    Could it be that Davy is angry with me?

  37. Davy on Tue, 31st Oct 2017 9:39 am 

    Dumb n Dutch. I love renewables. In fact I am investing in 4’more panels and Iron Edison batteries this month. I just don’t treat rewables like a cult. I am honest and realistic about the future. I am not a fantasy optimist that prosylitzes future fantasies that mostly center around your fantasy golden decade ahead for you and your Euroland. BTW, I enjoy your renewable posts when they are objective and neutral.

  38. MASTERMIND on Tue, 31st Oct 2017 1:34 pm 

    Cloggie get some credible sources..Some green blog is not a credible source…You dumbshit..and Low IQ stupid person.

  39. Cloggie on Tue, 31st Oct 2017 1:55 pm 

    Not even Heinberg believes in his own bullshit anymore, but 2005-style peak oil dinosaur “mastermind” keeps soldiering on.

    Forum lunatic.

  40. Apneaman on Tue, 31st Oct 2017 2:46 pm 

    clog, are dressing up for Halloween as a cum gragaling Nazi drag queen again?

  41. Cloggie on Tue, 31st Oct 2017 3:03 pm 

    Your kind got a thorough beating on Fox earlier this week by Tucker Carlson, TalmudTurk, when a sleazeball from your tribe protested against growing white nationalism in the world:

    https://www.counter-currents.com/2017/10/go-back-to-where-you-came-from/#more-76500

    Even your water carrier Davy outed himself as a white nationalist today.

    Today Merkel got booed again, twice:

    https://youtu.be/RXM7rYFvfDA

    “Austria, Hungary and Czechs Form Anti-Soros, Pro-Russia Alliance”

    http://russia-insider.com/en/austria-hungary-and-czechs-form-anti-soros-pro-russia-alliance-russian-tv/ri21410

    Your days are over.

  42. Davy on Tue, 31st Oct 2017 3:16 pm 

    I am a doomer clog who neuters dumbasses like you. Race has nothing to do with it. I am sorry you have an inferiority complex. I know it must be horrible to be overrun by the Nazis and then by the allies on the way back. No wonder you feel helpless and angry. Your little country that was once great is just a little insignificant Duchy. It is now home to a growing Muslim population that is set to make you a second class citizen. That has to hurt too. What a sad guy no wonder you live on revisions, conspiracies, and fantasy futures. Reality sucks for you.

  43. MASTERMIND on Tue, 31st Oct 2017 3:39 pm 

    Davy Just please ignore Cloggie. Madkat is fine to debate with because at least he makes more rational points and sticks to the subject matter of collapse and peak oil. Cloggie is just a fanatical racist who would get punched in the mouth if he ever talked the way he did online in real life. There is a good reason the alt right choose virgina and the south to have their hate rallies. Because if they really wanted a race war they would go to downtown detroit or chicago. Nuff said…

  44. MASTERMIND on Tue, 31st Oct 2017 3:48 pm 

    Cloggie : I post peer reviewed scientific studies. Just click on the link under my name. And you post MSM garbage..And just so you know you will never get control of power and create mass genocide. Once the oil runs short in a few years. that is game over for the global economy. Limits to growth will be officially vindicated. And once the economy collapse, the government will be over along with the rule of law. And you will be all on your own. Sink or swim.

  45. Hello on Tue, 31st Oct 2017 3:53 pm 

    >>>> downtown detroit or chicago

    Last time in Chicago (2010 maybe?) I ended up in a combination mexican/arab/negro neighborhood. What a shithole.

    Why would you want a rally in a place like that? It’s a lost cause. It’s like doing anti-islam demonstration in berlin or frankfurt or paris or london or amsterdam or marsaille or zürich or brussel or milano.
    A lost cause.

  46. Cloggie on Tue, 31st Oct 2017 4:40 pm 

    I am a doomer clog who neuters dumbasses like you.

    Only in your feverish imagination, depressed doomer.

    Race has nothing to do with it.

    Uhuh. This morning from Davy:

    http://peakoil.com/production/us-oil-floated-on-cheap-money/comment-page-2#comments

    I am against immigration and race/culture mixing anymore.

    Whooptidoo! We have a Richard Spencer in our midst. But rest assured he will continue to launch his “racist” smear in all directions regardless. Intellectual honesty is not Davy’s greatest forte.

    I am sorry you have an inferiority complex.

    What makes you think that? I remember you saying a few years ago: “you Europeans are all so proud”.

    I know it must be horrible to be overrun by the Nazis and then by the allies on the way back.

    During the five years that I was here, you never challenged my views regarding WW2…

    http://tinyurl.com/y9nbo88s

    … in any way. At first you found these views “interesting”, but gradually you began to understand that these views came at the cost of your beloved empire and you began to fight back, not with arguments, but with name-calling und insults, because that is all your mediocre brain can come up with. The only thing I deeply regret is that we were overrun by Americans. But that will be soon rolled back and you folks will return to a balkanized country.

    It is now home to a growing Muslim population that is set to make you a second class citizen. That has to hurt too.

    Indeed, without being a forced member of that stinking mass-murdering empire of yours, that disaster would not have happened. So we need to get rid of the West at the earliest opportunity. And resistance against America is rising all over the world. It is going to happen.

    We are nowhere as destroyed as your country that will not exist in 2025 anymore. The
    reserve currency status of the $ is globally under fire. Furthermore there is a perhaps $211T time bomb of unfunded liabilities hanging over your head, that can explode any minute. And when it does it will probably cause an uprising of tens of millions demanding support the government can’t provide. And if the government can’t provide, they will try to get it elsewhere. Or as somebody said here once: “this country is only three meals away from total chaos”. And it will nothing have to do with peak oil.

    What a sad guy no wonder you live on revisions, conspiracies, and fantasy futures. Reality sucks for you.

    Not really, we are going to enjoy a “golden decade”, we are going to dominate globally in renewable energy and we will restore the natural order within the “West”.

  47. Cloggie on Tue, 31st Oct 2017 4:54 pm 

    And just so you know you will never get control of power and create mass genocide.

    I would swear that is the specialty of you prairie dweller folks und your Soviet buddies. But then, history was never prominent on you folks todo list.

    Cloggie is just a fanatical racist who would get punched in the mouth if he ever talked the way he did online in real life.

    Of course, an Antifa clown like you has no doubt lose fists. Remember though that in the US there a lot of folks like me who do not fancy too much begin pushed into minority status and put yourself at the mercy of BLM thugs, the Soros puppets. And these folks have guns and are prepared for a life-and-death struggle for their cause of white survival. And of course there is Eurasia that can’t wait to support the white secessionists to finally get rid of the wannabee-hegemon by splitting it up. Let’s face it, America is over and folks like you will be helpful in bringing that split about.

  48. Cloggie on Tue, 31st Oct 2017 5:12 pm 

    Davy Just please ignore Cloggie.

    Don’t bother, I will be working again next week, so I will reduce posting or perhaps don’t post at all other than in case of black swan events.

    The topic of the non-event “peak oil” completely lost my interest and so does the constant flaming. Waste of time. Additionally there are simply too few folks like Rockman and Antius who professionally know what they are talking about.

  49. Apneaman on Tue, 31st Oct 2017 5:21 pm 

    clog, if you’re so passionate about all your monkey tribe shit, how come you are online and not at these dumb rallies and marches? Are you afraid you might get an ass whopping by some antifatass dyke? All she would have to do is show you her vagina and you will go running back to the psyche ward for another round of mommy issues counselling. Little half faggot nazi.

  50. Davy on Tue, 31st Oct 2017 5:49 pm 

    “I am against immigration and race/culture mixing anymore.”
    Dumb n Dutch, I am wondering how that relates to
    “Even your water carrier Davy outed himself as a white nationalist today.”
    I don’t think you realize I am saying this for the people that your country and my country has screwed with through colonialization and economic exploitation as well. It works both ways. We need to leave there countries and stop the cultural destruction there. No group of nations has done more harm to the rich variety of cultures in the world than the Euro’s including their bastard children the US and Anglosphere included. I don’t want more people coming to the US. Some will come and some need to come for a thousand reasons but open borders is a failure. Dumb n Dutch how does that make me a white nationalist?

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