Aramco Q2 earnings in line with industry trend

In this interview with Hadley Gamble from CNBC, Dr Carole Nakhle, CEO of Crystol Energy, comments on Aramco’s, the Saudi National Oil Company (NOC), record quarterly net income.

Dr Carole Nakhle discusses Saudi Aramco's record quarterly net income with Hadley Gamble from CNBC

Some of the main points covered during the discussion:

  1. In the last decade, there has been a push by western economies to achieve aggressive climate targets, overlooking the need for energy security. The current crisis has just proved that their approach was unsustainable.
  2. OPEC producers in contrast have been calling for continued investment in oil and gas as the demand for these fuels will still be present for many years to come – even under the most aggressive climate policies.
  3. There is a divergence between international oil companies (IOCs) and NOCs when it comes to production. BP for instance wants to reduce its oil production by 2030. Aramco, on the contrary, is going in the opposite direction as it plans to increase its production and spare capacity.
  4. Oil exporting countries, led by Saudi Arabia, are the main winners from this energy crisis. Their NOCs record profits are creating significant windfalls for the government with positive spillover on the economy.
  5. In the International Monetary Fund’s latest economic outlook, Saudi Arabia received an upgrade to its GDP growth unlike most of the other G20 economies.
  6. The US Inflation Reduction Bill, while provides significant support for green energy and EVs, also supports the oil and gas industry. That balance played an important role in passing the bill.

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