Saudi oil giant Aramco sees profits soar by almost 300%

Ever wondered who the winners of all the recent uncertainty are?

No doubt big pharma has milked the pandemic for every single penny it could manage and many believe our politicians have been complicit in their profiteering.

With the move towards more energy efficient modes of transport, carbon neutrality, political unrest in the Middle East and the recent economic downturn we would expect to see the profits of the major oil and energy groups fall dramatically.

But no, quite the opposite.
Saudi oil giant Aramco has announced that profits have risen by almost 300%.
In the second quarter of 2021 alone net income reached a staggering $25.5 billion - £18.4bn.

Exxon Mobil and Royal Dutch Shell have also recently announced a huge upturn in performance.

All this has obviously been helped by the rise in crude oil prices.

www.bbc.co.uk...

OPEC+ more or less run a monopoly on oil prices.
Recently there was a dispute between Saudi Arabia and its UAE neighbours over oil production levels and oil prices - this was the latest in a slight divergence of interests between the two.

www.bbc.co.uk...

Saudi Arabia is flexing its muscles and wants to assert its authority in the region and over its arch-enemy Iran.

Saudi Arabia is also the single biggest exporter and sponsor of Islamic extremism and The Wahhabi's wield a huge amount of influence in Saudi Arabia.
Wahhabi's have funded nearly every single mosque frequented by Islamic terrorists in the UK and Europe and has systematically undermined all other Sunni denominations.
They are also sworn enemies of Shia Iran.

en.wikipedia.org...
en.wikipedia.org...

It is thought that the vast majority of Wahhabi funding comes either directly or indirectly from Saudi oil related business.

So, who is benefitting most from the recent pandemic and global uncertainty?

originally posted by: Freeborn
So, who is benefitting most from the recent pandemic and global uncertainty?

Not you. Not the middle class. And not small businesses.

I did a similar thread a couple weeks ago, it's rampant wealth redistribution.

a reply to: AugustusMasonicus

Not you. Not the middle class. And not small businesses.

Exactly.
Not the ordinary Joe's that's for sure.
And whatever way you look at it we pay for it.

Fuel prices are soaring.
Food prices are creeping up - increased transportation costs are passed on to the customer.
Utility bills are on the Increase here in the UK.

All whilst these large corporations lap it up.

I did a similar thread a couple weeks ago, it's rampant wealth redistribution.

You and me may differ here but I believe the world could do with a certain amount of wealth redistribution.....but not of this sort.

Here my novice question isn't a Saudi-based oil economy juxtaposed against Biden's Green Deal or is that all a bunch of window dressing, and I suspect its business as usual behind the scenes. Not only in the US but elsewhere as well

What I want to know is why is OPEC extremely quiet about this "we want the worlds motors to be all electric by 2025" cos all their petro-dollars will dry up?

a reply to: crayzeed

I read that passenger vehicles account for approximately 25% of total oil consumption.

If OPEC+, essentially Saudi Arabia, maintains tight control on oil production levels and oil prices they should be able to maintain profit levels.
The last thing the Saudi's want is UAE or any other current OPEC+ nation going it alone and upping oil production or selling it cheaper.

I suspect that may also be one of the major sources of Saudi Arabia's hostility towards Iran.

a reply to: Freeborn

Yeah, thats why Man City and Chelsea can afford to shell out over 100million pounds on player transfer fees and pay over inflated amounts of wages per week.

a reply to: CrazeeWorld777

Yeah, thats why Man City and Chelsea can afford to shell out over 100million pounds on player transfer fees and pay over inflated amounts of wages per week.

For them clubs the sad reality is that if the arse ever falls out of the oil industry those clubs will go to the wall.

I have friends who support both clubs.
Two of my mates are season ticket holders at Stamford Bridge and travel down from the North East every home game and frequently attend away European games.

Man City were getting 30,000 crowds when they were in the old third division.
I know a few lads who used to go quite often.

Proper football people.

They'd just be minor collateral damage if the over-inflated oil industry takes a big hit.

originally posted by: Freeborn
The last thing the Saudi's want is UAE or any other current OPEC+ nation going it alone and upping oil production or selling it cheaper.

I suspect that may also be one of the major sources of Saudi Arabia's hostility towards Iran.

Iran cannot compete with Saudi since the oil is basically right below the ground and extraction costs are ultra low. At one point they estimated that oil could approach the mid-teens in dollars and Saudi would still be able to turn a profit. They also have the benefit of their oil be light sweet crude which is easier to refine.

a reply to: putnam6

The Climate Report published today should be a rude awakening for many....I suspect that wilful ignorance and vested interests will ensure that only lip service will be paid to the Report and its findings.

I suspect it doesn't matter much who is in The White House, important US policy is determined by others.

Do you think any US President would have the autonomy to implement something like FDR's New Deal nowadays?

I certainly doubt any current UK politician would have the vision let alone be allowed to introduce and implement an extensive programme of domestic improvements akin to those of the Attlee administration post-WWII.

originally posted by: Freeborn
Do you think any US President would have the autonomy to implement something like FDR's New Deal nowadays?

That got passed because the Democrats had large majorities in Congress.

a reply to: AugustusMasonicus

Even with a large majority do you think such an extensive programme would be possible - or allowed - today?

Is something along those lines required?

I personally feel we need something here in the UK.
Boom and bust is tiresome and achieves nothing.
Trickle down economics has failed miserably.

I don't think Boris Johnson can even comprehend the notion of an extensive, joined up, thought out programme with clearly define goals and objectives covering the economy, finance and social policies and all other aspects of UK culture and society.

But I digress...as usual.

originally posted by: Freeborn
a reply to: putnam6

The Climate Report published today should be a rude awakening for many....I suspect that wilful ignorance and vested interests will ensure that only lip service will be paid to the Report and its findings.

I suspect it doesn't matter much who is in The White House, important US policy is determined by others.

Do you think any US President would have the autonomy to implement something like FDR's New Deal nowadays?

I certainly doubt any current UK politician would have the vision let alone be allowed to introduce and implement an extensive programme of domestic improvements akin to those of the Attlee administration post-WWII.

Do you mean those corporate lobbyists and PAC special interest groups...

Just need COVID to crash oil again.

Will buy more of the stocks that I bought during the big crash and hold them longer into the rebound. If oil crashes again, when it rebounds, I'll be postured to pay off my house and sock a little more away for the future.

originally posted by: Freeborn
Even with a large majority do you think such an extensive programme would be possible - or allowed - today?

The TVA and related works projects were found to be Constitutional, I just don't see the value of them, I'm not a fan of government in the private sector.

a reply to: AugustusMasonicus

I'm not a fan of government in the private sector.

I'm even less a fan of the private sector in government.