SFDA move to impose travel ban on workers of food outlets in the event of food poisoning    Move to ban on establishing zoos in residential neighborhoods    GACA: 1029 complaints recorded against airlines, with least complaints in Riyadh and Buraidah airports during October    CMA plans to allow former expatriates in Saudi and other Gulf states to invest in TASI    11 killed, 23 injured in Israeli airstrike on Beirut    Trump picks billionaire Scott Bessent for Treasury Secretary    WHO: Mpox remains an international public health emergency    2 Pakistanis arrested for promoting methamphetamine    Moody's upgrades Saudi Arabia's credit rating to Aa3 with stable outlook    Al Okhdood halts Al Shabab's winning streak with a 1-1 draw in Saudi Pro League    Mahrez leads Al Ahli to victory over Al Fayha in Saudi Pro League    Al Qadsiah hands Al Nassr their first defeat in the Saudi Pro League    Saudi musical marvels takes center stage in Tokyo's iconic opera hall    Saudi Arabia, Japan strengthen cultural collaboration with new MoU    Saudi defense minister meets with Swedish state secretary    Navigating healthcare's future: Solutions for a sustainable system    Al Khaleej qualifies for Asian Men's Club League Handball Championship final    Katy Perry v Katie Perry: Singer wins right to use name in Australia    Sitting too much linked to heart disease –– even if you work out    Denmark's Victoria Kjær Theilvig wins Miss Universe 2024    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Sale of stake in Aramco!
Published in The Saudi Gazette on 10 - 04 - 2017

WHEN a party seeks to justify a point of view emotionally and far from objectivity, the argument enters into an issue that is beyond the main subject.
This is what is happening today in "rejecting the idea" of the proposed sale of a stake in Saudi Aramco.
The opposing group is of an exaggerated view that the sale of shares of Saudi Aramco to others is akin to selling one's honor to someone and so on. So I will make an attempt here favoring the sale of stake in Aramco and I am fully aware that I may be walking on a minefield!
Perhaps the most important and very serious challenge facing Saudi Arabia and its economy today is that the oil is depleted economically before it is drained naturally, just like what it is happening with coal, which is still produced, exported and in use but ineffective on the map of the global economy.
The value of oil is reduced and therefore its revenues will continue to decline. Accordingly, the company that produces it (in this case Saudi Aramco) will lose its financial value over a period of time. For example, if its value is 100 today, it will be at 90 tomorrow or 80 the day after tomorrow. The cause of this decline is evident and nobody can deny or ignore it and therefore there is a need to clarify this to those opposing the idea of the stake sale.
The quantity of oil available in the market today is huge but the supply is more than demand. This trend is likely to continue in light of the large number of discoveries of new oil fields as well as due to availability of shale gas from the United States (America does not possess large quantity of shale gas. But China, Argentina, Mauritania, Morocco and Jordan have abundant quantity of it but they do not have the technology to extract it and therefore this is just a time factor nothing more).
Now the continuous focus is toward development of alternative energy from air, shale gas and solar which are more environmental friendly and these are sources of energy whose efficiency is getting improved through research and experience and thus there is a decrease in the cost of production. Morocco alone plans to have 50 percent of its energy requirement from air within a few years. What Morocco has planned also applies to other countries around the world that have set similar goals.
There is the phenomenon of Edmond Musk, founder of Tesla electric cars, an icon in the world of alternative energy, just as Steve Jobs was in the world of communications. It will be a great revolution when car models operating with alternative energy and with high efficiency are successfully completed and widely sold in the market that will obviously lead to very low consumption of the traditional oil. Perhaps the same type of alternative energy will be applied for development of aircraft and cities. Thus, one can imagine the effect on the price of traditional oil and its consumption in future.
Today, all major international car manufacturers have models similar to Tesla because they are convinced that the technology is not accidental, temporary or transient, but it is there to stay. All this has become a reality and has influenced the situation in the world of oil market.
There was a time when the price of oil would jump to record high with any talk or signs of war in the region. It is no longer so. The situation has changed drastically. Today even though the region is engulfed in wars but the price of oil has not been affected at all.
Sale of a stake in Aramco is a wake-up call to reality and there is a real need to cut the umbilical cord with oil and a serious transformation of an economy that is not dependent on oil because it has created an abnormal economic state of affairs and this situation is unnatural and unsustainable.
Selling a stake in Aramco means it will have a respectable value today and the proceeds of it can be invested into non-oil resources which is a better solution then getting carried away with emotions and convulsions.
Today Aramco is a valuable company and more importantly it has a better value than in the future. This is an important fact no matter how decorative one tries to paint the picture.


Clic here to read the story from its source.