Tuesday, June 7, 2011

I Don't Think Most People Would Get This Answer Correct: Globally, Which "Company" is the Largest Oil and Gas Company?

The answer is buried near the end of this long article on the game-changing transformation Saudi Aramco plans to undertake.
In a speech in Washington, D.C. in mid May, Saudi Aramco's President and Chief Executive Officer, Khalid A. Al-Falih, outlined for the first time in public, the company's new Accelerated Transformation Program (ATP) that will transition Aramco from "an oil and gas company to a fully integrated global energy enterprise."

... Aramco is pressing ahead with the massive expansion of its global refining capacity and continuing with refining and chemicals integration and expansion in the U.S., Korea and China.

The statement buried in the Q-and-A that we found most interesting was that "the foundations of Saudi Aramco's future will remain in those reservoirs [the current prolific producing fields of Saudi Arabia], but the Kingdom and the company will have a future that is larger and more diverse." The timing of the disclosure of the ATP initiative is curious. It comes at the same time the media discovered that the Kingdom has begun a foreign relations effort aimed at creating an alliance of Muslim countries to provide a counter-balance to a militant Islamist Iran.
The answer to the question is in the article. I did not want to take it out of context and place it here. 

3 comments:

  1. Saudi Aramco is a national entity. Anyone can give a speech . I for one do not look to national entities for innovation in any segment of industry. The chairman's stated intentions are welcome tho.

    ReplyDelete
  2. I agree 100%.

    The only important takeaway from that link was the bar graph.

    Oh, and one other one: "... Aramco's view that even 25 years from now the world will still derive the greatest portion of its energy supply mix from crude oil."

    The greatest portion of the global energy supply mix from crude oil -- I thought it was coal, and would still be coal -- but the chairman's point is well taken. The greatest portion of the world's energy supply is not going to be wind or solar.

    ReplyDelete
  3. Well the head of the Esteemed Royal Kingdom of all the oil in the universe is entitled to his opinion and his goals. Investors should do their own due diligence.

    ReplyDelete