Oil News: Saudi Oil Giant Going Public?

Oil News

Aramco, worth trillions of dollars according to officials, may be on the verge of listing 5% of company’s shares on the stock market. Even such a small percentage of shares could greatly increase the size of the Saudi stock exchange, which has a current total market value of around $400 billion.

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Prince Muhammed of Saudi Arabia, who has been speaking about this potential sale recently, hopes that in addition to helping the stock market, the sale will lead to more transparency within the company. 

Many investors are excited about this sale coming to fruition despite today’s dropping oil prices. There are many more questions that will need to be confronted, however, in addition to those concerning oil prices. For one, Aramco is producing mostly oil, 87% of the company’s output is oil despite new consumer desires for gas as a cleaner and cheaper form of power.

Threats to the company also include alternative energy sources, such as the wind and solar, which are beginning to pose a challenge to fossil fuels. This move to go public with the company, even with such a small percentage of shares, could be a move to “cash-out” before a complete decarbonization of the market occurs.

There is a lot of buzz revolving around this potential deal, and analysts are asking if this could be the sale of the century. New transparent operating procedures and protocols that come as a result of this deal, could have global repercussions.

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