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Home > Energy Week > Episode 86 - We're back! | Saudi Aramco IPO | Iran finds 50BBL oil | Dean Foreman


	Podcast:		Energy Week
	Episode:		Episode 86 - We're back! \| Saudi Aramco IPO \| Iran finds 50BBL oil \| Dean Foreman
	Category:		Government & Organizations
	Duration:		00:55:20
	Publish Date:		2019-11-12 10:13:44
	Description:		Iran discovers new oil field with over 50 billion barrels https://apnews.com/a6adb7b30adb444998541b1b5aca4332 - lack of new discoveries recently, but can this 53 billion barrel discovery be verified? - How much of this is actually recoverable? - Interesting timing Aramco IPO The World’s Most Profitable Company Pays Surprisingly Little https://www.bloomberg.com/news/articles/2019-11-01/the-world-s-most-profitable-company-pays-surprisingly-little What to Know Before Buying Shares in Saudi Arabia’s Oil Company https://www.nytimes.com/2019/11/06/opinion/saudi-aramco-public-offering-.html Aramco IPO Local Push May Test Saudi ‘Vision’ https://www.bloomberg.com/opinion/articles/2019-10-29/aramco-ipo-s-local-sales-push-may-dim-saudi-vision - Wild West in terms of financial regulations in Saudi ARabia - Concern over limitations for outside investment - impact on distribution of income in Saudi Arabia. Outside money isn’t necessarily going to be invested. Frackers Prepare to Pull Back, Exacerbating a Slowdown in U.S. Oil Growth https://www.wsj.com/articles/frackers-prepare-to-pull-back-exacerbating-a-slowdown-in-u-s-oil-growth-11573478550 - With U.S. production at 12.6 million bpd, how far is fracking really going to fall off? - DUCs are coming online and will be used up, rig count declining so unless there’s an economic collapse, won’t oil prices rise? - Is someone going to scoop up the assets? ExxonMobil? - What’s going to happen? There are too many variables to know. - Break down Chesapeake assets. Where are they? (Below a dollar on Monday) could be delisted in 26 days. How much has Chesapeake drilled? Who might be interested in buying Chesapeake’s assets? API Monthly Statistical Report - New crude oil production record for the United States — 12.6 million bpd of production! - This was a surprising, not just the number but also the jump - twice as much as previous increases. - Pipelines are increasing Permian deliverability. - Too much pipelines? Or will these pipelines get filled up sooner than we thought? The $4-$5 per barrel differential between WTI and Brent is still significant. If the clouds on trade could be cleared, the differential between WTI and Brent could decrease. - More pipeline startups this Q will bring more barrels of pipeline capacity. Improved pipeline capacity coming out of the Permian should make it so crude coming out of places like Midland will be able to go directly to refiners and the coast will improve transportation costs. - Why are Brent crude oil prices what they are? Brent benchmark is a blend of different Crudes. 40s component of this benchmark is setting the price. China is bidding up the light crude that its having trouble getting from Saudi Arabia. - IMO 2020 - is there a stockpile of residual fuel oil that can’t find a home? So far, not yet. Need for heavier oil from Canada, Gulf of Mexico, Venezuela is still desirable. - Fears of global recession not necessarily as bad as feared? Where is API’s economic indicator? Federal reserve rate cut is trying to stave this off. Some economies are technically in recession in right now. Flatlining. - Import/Exports vs. inventory: what conclusions should we draw from this: petroleum exports are above 8.1 million bpd (products+crude). - Maya oil vs. Canadian heavy oil vs. Venezuelan heavy oil - starting to see some of the differences in value go towards their tail. Potential structural changes in the market. Also where refiners are drawing from. - Refinery utilization - 85.5% This is a short-term exception. In Sept utilization rates were at the highest levels at 2019. Oct range is abysmally low for the 5 year range. Pipeline outages. Should come back online quickly. - Oct jet fuel demand was up! Ellen and Ryan did their part to support the energy complex. - Highest ever petroleum demand for the month of October! But we’re worried about recession? Naphtha, gas oil quietly continued to grow this year. From the US perspective shows underlying strength. - We should remember that exporting US oil doesn’t make oil prices rise. We are exporting more than ever and oil prices are still low. Statistical report here: https://www.api.org/products-and-services/statistics/api-monthly-statistical-report Libertarian Purity Test http://www.bcaplan.com/cgi-bin/purity.cgi https://www.npr.org/2019/10/29/774507027/saudi-arabia-moving-forward-with-plans-to-sell-shares-of-aramco https://www.npr.org/2019/11/03/775878235/saudi-aramco-worlds-most-profitable-company-will-make-first-public-offering Vox Podcast https://art19.com/shows/today-explained/episodes/9ef9d5c4-b83e-41f7-ab2a-c28c126efc3f 86 Questions about the Aramco IPO that Investors need to know: http://www.transversalconsulting.com/document-request/ (Refresh your browser if document doesn’t immediately appear)
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