01-08-2016, 11:45 AM
Saudi Arabia has shot itself in the foot to such an extent that they're mulling over rather unprecedented measures:
Saudi Arabia is considering an IPO of Saudi Aramco, the world’s biggest crude oil producer, deputy crown price Mohammed bin Salman says in an interview with The Economist.Saudi officials say the company is worth "trillions of dollars," which would make it worth at least double Apple's ~$555B market cap; in the energy sector, Exxon Mobil's current market cap is ~$324B.Aramco’s oil production is double its nearest rivals and accounts for more than 10% of global output, but the slump in crude prices to 12-year lows has squeezed revenue for oil producers including Saudi Arabia.Such a move would be an "epochal change in the oil industry,” says Bob McNally, founder of Washington-based consultant The Rapidan Group and a former senior oil White House official. “Saudi Arabia is getting ready to ride the oil-price roller-coaster, not control it."
Saudis considering IPO for Saudi Aramco, bin Salman says | Seeking Alpha
Their reserves are unmatched, in the order of 10x those of ExxonMobil, which would value the company at $2.5 trillion...