Saudi Aramco: Climate change, conflict, alternative power among key risks

Climate change-related litigation and regulation, alternative power supplies, a shift to electric vehicles, and political conflict from regional state actors or terrorists are the key threats to the worlds largest oil and plastics company, Saudi Aramco.

Saudi Arabia has continued to drip-feed world markets details of the float of Saudi Aramco. The companys initial public offering prospectus (IPO) was released on Sunday, a normal working day in Saudi Arabia. There was relatively little new information about the nuts and bolts of the IPO to add to what FreightWaves has already reported. For example, details of how much stock will be sold, at what price and when the listing will take place on the Saudi Arabian stock exchange, Tadawul, are yet to be decided and/or disclosed.

Nonetheless, the IPO prospectus did shed light on the companys views on the future state of world oil and chemical markets.

Global demand for crude oil is expected to continue to grow, with global GDP growth being a key driver, according to the prospectus. Growth will likely be led primarily by non-OECD Asia Pacific, the prospectus said.

Global demand for refined products and chemicals is expected to grow, the prospectus added, and this would be driven by demand in Africa, the Middle East and the Asia Pacific region. Global demand for ethylene (a precursor chemical for a wide range of plastics and industrial chemicals) is forecast to grow at a compound annual rate of 3.3% because of anticipated growth in demand....

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