Saudi Aramco Plans World's Biggest IPO • Hacker News Board

Re: Saudi Aramco Plans World's Biggest IPO

#101

Post by JamesBarney » Thu, Aug 18, 2016, 7:38 PM UTC

salimmadjd wrote: post #59

There is a geopolitical element here. What happens when US mutual funds and retirement funds are invested in this stock? Will the mutual funds lobby the US Government to put sanctions on Iran to give Saudis more output and more revenue to ultimately benefit the funds? What happens if Saudis are linked further to 9/11 or to other activities that goes against US' interests. Will the banking sector lobby the congress ag…

The open shares that Exxon(market cap 370B) has on the market exceeds the number of shares that Saudi Aramco will have(100B). So this won't have a very large impact.

Re: Saudi Aramco Plans World's Biggest IPO

#102

Post by kneegrown » Thu, Aug 18, 2016, 10:54 PM UTC

velodrome wrote: post #94

lern_too_spel wrote: post #84

Earlier quoted context omitted.

The only reason oil is so cheap right now despite much higher consumption than in 2007 is that Saudi Arabia specifically decided to massively increase production, breaking OPEC. They did this because they see the writing on the wall. Better that they get all the remaining money to be made from oil and cut out entirely the people who extract oil less cheaply from shale and other sources.

Your thinking Saudi Arabia UNILATERALLY caused the oil glut. IF that were the case, Saudi Arabia would be more powerful than OPEC, etc. They are not. The thing is most of the world's oil producers were pumping oil at ever increasing quantities: https://en.wikipedia.org/wiki/File:Top_Oil_Producing_Countie... As oil prices went down, they had to pump MORE to maintain operating costs. http://econbrowser.com/wp-content/u…

You just proved his point. Everyone sees the writing on the wall.

Love,

Kneegrown

Re: Saudi Aramco Plans World's Biggest IPO

#103

Post by lern_too_spel » Tue, Aug 30, 2016, 7:21 AM UTC

velodrome wrote: post #95

lern_too_spel wrote: post #89

Earlier quoted context omitted.

makomk is right. US crude production is dropping since Saudi Arabia increased supply to drop oil prices below what the other suppliers can support. https://ycharts.com/indicators/us_crude_oil_field_production

US crude is sold at market prices and is NOT specifically dependent on Saudi Arabia supply increases (e.g. another oil producer could cut production and zero out that increase). Also, the price fell long BEFORE Saudi Arabia increased production (about a year). This was due to excess supply and why Saudi Arabia tried to cut production in 2014. http://www.artberman.com/wp-content/uploads/Chart_Market-Bal... https://ych…

You have it exactly backwards. Saudi Arabia removed production caps in 2014. Shale fields cannot produce oil profitably at the resulting prices and are shutting down. http://mobile.reuters.com/article/idUSKCN0JA0O320141128