Saudi Aramco’s biggest asset could also be a liability. Its vast oil reserves — the state-owned Aramco producer can sustain current production levels for the next 50 years — make it more exposed than any other company to a rising tide of environmental activism and shift away from fossil fuels.
One of those wonderfully colourful, powerfully descriptive phrases of the American vernacular is that ‘reform means taking some dog’s bone’. That may be just a street version of ‘follow the money’, but it rings all too true, especially when we hope uber-powerful entities might change their ways and help us change ours.
Oil prices jumped about 3% yesterday, with Brent hitting one-year highs, after Russia said it was ready to jointhe Organization of the Petroleum Exporting Countries (Opec) in curbing crude output and Algeria’s oil minister said he expected similar commitments from other non-Opec producers.
THE seizure by Somali pirates of the MV Sirius Star, an oil supertanker owned by Saudi company Aramco, some 450 nautical miles off the coast of Kenya, is a brazen act that represents a major threat to both the world’s energy security and the shipping lanes of the Indian Ocean, the Gulf of Aden and the Red Sea.