This is an interesting side-story to the oil supply paradox as countries seek to increase revenue by exporting more oil which, in turn, causes prices to fall.
“The share of Saudi Arabia’s exports of refined oil products steadily rose throughout 2017, offsetting a drop in overseas crude oil sales as the kingdom complied with a global supply pact, the International Energy Agency said on Friday.”
So, as Saudi Arabia agrees to cut crude oil supply to maintain oil prices, they increase the supply of refined products to maintain revenues. This is something few other countries can do as refineries all almost all privately owned.
It also indicates Aramco’s strategy to move towards final products rather than relying on crude exports. Interesting.
Saudi Arabia’s state oil producer is in a league of its own. The world’s most valuable company, which supplies about one in every nine barrels of crude produced and runs refineries from the U.S. Gulf coast to the South China Sea, is preparing for an initial public offering to raise about $100 billion as soon as 2017.
One barrel in every nine – that’s an amazing statistic.
As I’ve mentioned before, I’ve worked on many projects for Aramco – in fact I’m currently working on the pre-FEED phase of my tenth Aramco job. I’ve also had the opportunity to travel to Saudi Arabia on several occasions.
Saudi Aramco – Saudi Arabia’s national oil company (I have worked on their projects on 9 occasions since 2001) are in the news at the moment as they look to diversify and spread their investments across the World.
Two recent articles in Downstream Today outline such plans.
This is significant for two reasons – firstly transporting gas long distances is difficult and expensive, liquefied natural gas (LNG) facilities are costly and technically complex as are the ships that transport the fuel at -161 deg C. Any process that can convert gas to liquid fuels more easily will be of real interest.
The second reason is that much of the gas, once re-vapourised is used as a Petrochemical feedstock anyway. So if this process can make liquefaction easier, cheaper and provide the PetChem building blocks at the same time it could be a real money spinner.
The company in question, Siluria, announced that it raised more than $30 million in a financing led by Saudi Aramco Energy Ventures (SAEV) – the venture investment arm of Saudi Aramco.
This indicates the level of diversity – in processes, products and locations that Aramco are looking at.