Saudi Aramco, the national oil and gas company for Saudi Arabia, was once completely dominant in world oil markets. Today, Saudi Arabia is still very influential but most analysts agree it could no longer completely upend world oil markets on its own. America has bypassed the Saudis in crude oil production and America is even cutting slightly into the world export markets. Saudi Arabia has never been much of a player at all in international natural gas markets, though, and now it seems they want to cut into America’s growing dominance.
In late January, Aramco’s CEO Amin Nasser said in an interview that the company wants to increase its U.S. investments. It already owns the biggest U.S. oil refinery, which is the Motiva plant located in Port Arthur Texas. The project was developed as a joint venture with Royal Dutch Shell, but as of last year Aramco took full control of it following a $10 billion expansion.
Aramco is looking for additional investments in its international gas portfolio, and is looking to spend billions of dollars. It is supposedly willing to spend $150 billion to increase its own gas output and become an exporter of gas produced in Saudi Arabia. Petrochemical production in the United States is also “very lucrative” due to the abundance of ethane, a type of natural gas. Saudi Prince Mohammed bin Salman has been working to turn the country into an “investment powerhouse” that is less reliant directly on oil revenues. That goal has taken a big hit in recent months, though the Saudis seem intent on not admitting that.
We all grew up hearing stories about Middle Eastern countries dominating oil and gas markets, but today the booming Marcellus Shale region is run almost entirely by American-owned independent producers. We help many of these great companies secure drilling rights in the region, and if you have a great company that wants to expand its territory just call us at (412) 212-7517.