The Saudis are Planning the Millenium IPO… Selling Aramco… Obviously They Believe #Oil has no Future. Does #LENR have Anything to Do With it?

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I’m absolutely amazed by the Economist articles and interviews with the Saudi deputy crown prince  Muhammad bin Salman.

Obviously he/they belive the price of oil will never be higher than today again. Otherwise there would be no better bank than keeping the oil where it is. So they plan to use the Big Banks to sell the soon-to-be-worthless oil fields to the pension funds of the world… Actually I have to admire it. Brilliant move. Probobly advised by McKinsey (as mentioned in the Economist article and interview here and here).

The Economists is actually on the right track. Look:

Another threat is alternative forms of energy, such as wind and solar, which may well challenge fossil fuels. Selling shares in Saudi Aramco could thus be intended to cash in before the “decarbonisation” of the economy starts to gain credibility. It would also fit with a trend that has started to transform the oil industry for the first time in half a century—denationalisation.

Only question for the Saudi prince is: If there is time enough?

 

 

2 thoughts on “The Saudis are Planning the Millenium IPO… Selling Aramco… Obviously They Believe #Oil has no Future. Does #LENR have Anything to Do With it?”

  1. Your faith is nothing short of amazing. I wish all the best for your investments though.

  2. 🙂 Well. Thanks tyy! Investments are fine. And I’m sorry to dissapoint you, but I don’t deal in faith … Of course I realize that this 18 month amazing drop in oil price is not a (direct) result of LENR, but certainly of Saudi strategy change and OPEC disintegration. Allthough, I have reason to believe that they are aware of LENR and certainly the McKinsey advisors (mentioned in the Economists article) are … It’s their job, and they are paid extremely well to know about this stuff.

    Fact is. Since 18 months the Saudis have chosen to flood the market with as much oil as they can produce regardless of price. And now they hint they want to go public with Aramco at todays ~$33 oil price. If they even thought for a second that this was temporary and the price would go up again long term, that would be an incredibly stupid idea.

    The idea to move the asset risk to the public is brilliant. The same way as Exxon, BP, Shell and the rest of Big Oil has done. The pension funds of the world will take the blow and they will be to stupid to notice (well, they will eventually notice, but they will not mention it) …

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