Saudi Arabia’s main oil producer has announced its plans to re-tender major oil projects to take benefits of cheaper construction costs and lower commodity prices following the global financial crisis. Saudi Aramco’s Projects Management Director Majid Al Mukla, said: Saudi Aramco is considering more flexible and innovative strategies to lessen financial risks in managing these [...]
Saudi Arabia said that it hoped to raise oil prices to $75 a barrel, but indicated that no measures would probably be taken until an OPEC meeting next month in Algeria. For full story, click here
Clearly Monday was not particularly good news for oil companies. With futures settling below $90 per barrel, ($87.81 when Benchmark went to proofing) the industry is seeing the lowest prices since February.
OPEC’s meeting tomorrow will almost certainly result in talk of cutting production, but not much in the way of concerted action. Member nations’ motivations are not synchronized, so consensus is exceedingly unlikely. Iran wants to impose OPEC-wide decreases, but the UAE thinks current levels are appropriate. Although OPEC will not move together on this issue, some countries (notably Saudi Arabia) are likely to retrench significant volumes.
Japanese oil and gas engineering group Chiyoda Corp reported that it is preparing to bid for two large export refinery projects planned by Saudi Aramco jointly with Houston-based ConocoPhillips and France’s Total SA. Chiyoda President Takashi Kubota said: The company plans to announce one or two alliances with other engineering firms when it unveils half-year results [...]
Think of how your day would go if you couldn’t use the internal combustion engine, plastic, most electricity, the products of commercial agriculture or anything that has traveled by ship.
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