By they way, I think I just saw a headline suggesting Saudi Arabia will extend production cuts.
Watch for links.
S&P Global Platts with forecast at this link. Summary:
- Saudi oil giant unveils 2020 earnings March 21
- Capex cuts expected to endure into 2021
- Cheap onshore crude production favored
From the linked article:
Oil prices have largely rebounded to pre-pandemic levels on the back of severe Saudi-led OPEC+ production cuts, but industry sources and analysts say they expect Aramco to continue postponing or even abandoning international projects and more expensive domestic offshore ventures, as it seeks to conserve cash after a fiscally brutal year.
Aramco CEO Amin Nasser has said he does not see global demand fully recovering until 2022. [That would make sense: we're well into 2021 and things are not looking good in Europe, yet.]
In its Q3 results, released in November, Aramco said its profits crashed by 44.6% to $11.79 billion compared with $21.29 billion for the same quarter of 2019, reflecting the plunge in global oil demand due to the coronavirus pandemic. [Saudi Aramco has a $75-billion-annual dividend obligation. At an annualized rate, 3Q20 profits would barely cover the dividend.]
Its 2020 capex budget was slashed by half, to under $25 billion, and the company, which holds about 12% of the world's crude production capacity, is reportedly planning a similar capex budget for 2021.
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