Saudi Aramco: the Big Spoof:
"Saudi Arabia is preparing to lift the hem of its robes a few inches, allowing gawkers to assess the firmness of its financial footing. Energy minister Khalid al-Falih says the kingdom will publish an audited total for its oil reserves. Western investors see this as a prerequisite for the flotation of Saudi Aramco, the national energy company optimistically valued at up to $2tn.
The longest session of Spoof in the history of the world may thus be ending. Since the eighties, world oil prices have been based partly on the belief that the country has reserves of about 260bn barrels. As in the alcohol-fuelled gambling game — which is hard to play in Saudi Arabia without getting arrested — the government plans to reveal a number it has concealed.
It would be extraordinary if the house of Saud has really been sitting on exactly 260bn barrels of oil for all 36 years. Its geologists would have needed to identify new reserves at the pace old ones were depleted."
'via Blog this'
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