11 May 2017
Saudi Aramco's shifting strategy
Saudi Aramco has big plans for expanding its refining capacity and it won’t let oil-price volatility stand in the way, Abdulaziz Judaimi, the company's downstream vice president, says
PE: Moving downstream is historically considered a smart move in an era of low-priced oil. It allows integrated companies to capture more value from oil as a commodity. Does Saudi Aramco believe we're in a long period of relatively low-priced oil markets? AJ: During market downturns, upstream earnings suffer significantly more than downstream businesses do. In fact, downstream margins and earnings usually benefit from low-priced crude feedstock. So, integrated companies, with both upstream and downstream units, normally perform better over the long-term, and are better positioned to negotiate soft market patches. Saudi Aramco's downstream expansion strategy also reflects the above factors. A
Also in this section
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
