Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Category Archives: Energy

Saudi Aramco’s IPO Too Risky: Institutional Investors Shying Away

This article appeared online at TheNewAmerican.com on Monday, December 2, 2019: 

The “road show” designed to build investor interest and demand for shares of Saudi Aramco’s initial public offering (IPO) ends on Wednesday and the early results are disappointing, to say the very least.

Crown Prince Mohammed bin Salman (MBS) thought back in 2016 that he could sell a tiny piece of his country’s crown jewel, the Saudi Arabian Oil Company (Aramco) and raise $100 billion. He had big plans to invest those proceeds in diversifying his country’s economy away from its near total reliance upon oil revenues for its sustenance and for the maintenance of its welfare state.

Now, however, he’ll be lucky to get a quarter of that. And most of what he gets will come from pressure, threats, intimidation, and manipulation.

The New American has outlined the risks to those investors residing outside the Middle East, including:

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Saudi Arabia’s Aramco’s “Road Show” Ends on Wednesday; Shares to be Offered a Week Later

This article was published by the McAlvany Intelligence Advisor on Monday, December 2, 2019:

This writer published an article here in November (see Sources below) outlining the risks of investing in Aramco’s IPO. Lest there be any confusion on the matter, neither that article nor this one is intended to be investment advice.*

This follow-up article will let the facts and the risks speak for themselves. Putting it simply: because of those facts and risks, the Crown Prince is likely to be sorely disappointed with the final results of his IPO when it comes to market on December 11.

Crown Prince Mohammed bin Salman (MBS) thought back in 2016 that

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Run, Do Not Walk, Away from the Aramco IPO

This article was published by The McAlvany Intelligence Advisor on Monday, November 18, 2019: 

Even before becoming the crown prince, Mohammed bin Salman (MBS) had big dreams. If he could raise $100 billion, he might be able, if he moved swiftly enough, to keep his kingdom from becoming irrelevant.

He posited the idea in 2016: sell five percent of the government’s only asset – Aramco, officially the Saudi Arabian Oil Company – to unsuspecting investors who think that it’s worth $2 trillion. In 2018, he began to draw up plans to redirect the country’s total dependence upon oil revenues towards real estate development, tourist destinations, industrial parks, improved transportation, and other infrastructure improvements. He called it his “Vision 2030.”

His path became twisted, slowing the initial offering of shares. He met resistance from inside the kingdom, so he had to do some housecleaning. There was the murder and dismemberment of Washington Post journalist Jamal Khashoggi last October, which MBS denied any knowledge of, but which forced Fitch Ratings to downgrade the government’s credit rating. And then there were the attacks on the company’s oil fields in September, letting all the world see just how vulnerable those facilities are in a highly volatile and explosive Middle East.

Nevertheless, Aramco, MBS’s “crown jewel” announced on Sunday that it is only offering 1.5% of itself for sale in December, at a price far less than MBS had hoped for. And if things don’t meet even those minimum, now greatly reduced expectations, he could pull the offering altogether before it goes public in December.

Analysts looking through the 600-page prospectus that was released last week on the deal aren’t impressed,

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Saudi Aramco IPO to be Huge Disappointment

This article appeared online at TheNewAmeican.com on Sunday, November 17, 2019:  

Saudi Arabia’s “crown jewel” — Aramco, officially the Saudi Arabian Oil Company — announced on Sunday that it is only offering 1.5 percent of itself for sale in December, at a price far less than Crown Prince Mohammed bin Salman (MBS) had hoped for. And if things don’t meet even those minimum now greatly reduced expectations, the company could pull the offering before it goes public in December.

When first floated in 2016, MBS suggested he could sell five percent of the state-owned and controlled oil company and receive $100 billion to jump start his Vision 2030. He assumed that his “jewel” is worth $2 trillion.

Analysts looking through the 600-page prospectus that was released last week on the deal aren’t impressed, with many suggesting a much lower valuation, perhaps as low as just $1 trillion. That could turn MBS’s dream into a nightmare. If the offering goes well, he might receive $25 billion. If it doesn’t go well

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Mainstream Media Promotes Phony Study that Supports Their Climate Change Agenda, and Gets Caught

This article was published by the McAlvany Intelligence Advisor on Wednesday, November 13, 2019:

In their eagerness to promote their climate change agenda, the mainstream media grasped hold of a phony study and called it real. The outfit that released the study sounds legit. After all, it’s a prestigious nonprofit with goals that sound honorable. Headquartered in McLean, Virginia, it publishes a journal called BioScience, which it claims contains nothing but peer-reviewed articles. It seeks “to advance public policy, education, and the public understanding of science,” according to Wikipedia, and “promote an increased understanding of all life,” according to its own website. It claims that “AIBS’s ability, resilience, and integrity are the keys to our success.”

Each of those keys is being sorely tested now that it was learned that many of the 11,000 so-called “scientists” that approved of and supported the warning weren’t scientists after all. The signers included an “animal behavior” teacher in Valencia, a “scientist emeritus” in Canada, a “researcher” in the Czech Republic, a “professor” from Argentina, a “student” from a “neotropical biodiversity institute” somewhere, an obstetrician from Brussels, a Spaniard who’s into “biologo,” a Turkish mathematician, and a Finnish engineer.

Also approving the warning were “Mouse, Mickey” from the “Mickey Mouse Institute for the Blind, Nambia,” Albus Dumbledore, headmaster of Hogwarts, and Araminta Aardvark from the University of Neasden.

But none of this deterred august members of the Fourth Estate from reporting favorably on the warning, as its recommendations lined up with the standard global warning demands being pushed by the likes of Alexandria Ocasio-Cortez and others. NBC News called it

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Saudi Arabia’s Aramco IPO Fraught With Danger for Investors

This article appeared online at TheNewAmerican.com on Monday, November 4, 2019:  

When Saudi Arabia’s crown jewel, oil producer Aramco (officially called the Saudi Arabian Oil Company), announced on Sunday its “intention to float” some shares in the long-awaited initial offering of shares of the state-owned oil company to the investing public (an IPO, or Initial Public Offering), it triggered two events: a “road show” or “book building” tour by the company to generate enthusiasm among mostly institutional investors for the upcoming offering of shares in December; and the issuing of a “prospectus” outlining the risks entailed by that offering. The prospectus is due out next week.

Investors would do well to read that prospectus very carefully before investing. Though it might not include every risk a new investor would be taking in buying shares when they come to market in December, those risks that will be exposed should provide plenty of reasons to exercise caution before investing.

At the press conference heralding the plan, Aramco Chairman Yasir el-Rumayyan declared:

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BLM to Allow 37 New Oil & Gas Wells in California; Environmentalists Outraged

This article appeared online at TheNewAmerican.com on Wednesday, October 9, 2019: 

A decision by the Bureau of Land Management (BLM) to allow “up to” 37 natural gas or oil wells to be leased on government property in California has raised the ire of environmentalists, left-wing papers, and liberal green “public interest” law firms.

The press release from the BLM last Thursday sounded scary, and the green movement took maximum advantage of it. BLM said the approval “makes approximately 680,000 acres of Federal mineral estate available for leasing … and another 42,000 acres available” for a total of 722,000 acres now open for bidding by energy developers.

Immediately, the San Francisco Chronicle headlined the coming disaster with a photo of oil derricks dotting the landscape near Bakersfield and a warning that the “Trump administration opens California to new oil drilling; possibly Bay Area, too.” The Sacramento Bee’s headline shouted:

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Aramco IPO Plans Pushed Forward Before Oil Prices Drop Further

This article appeared online at TheNewAmerican.com on Tuesday, September 3, 2019:

Saudi Arabia’s Crown Prince Mohammed bin Salman, known as MBS, just relieved his energy minister, Khalid al-Falih, of his duties concerning the Initial Public Offering (IPO) of his country’s primary asset, ARAMCO (officially, the Saudi Arabian Oil Company). Plans for that offering, first announced in 2018, were to raise $100 billion for the country’s sovereign wealth fund so it could invest the funds to diversify the economy away from its dependence upon oil revenues and bring it into the 21st century.

Plans were delayed for several reasons. First,

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The Plans of the Crown Prince of Saudi Arabia Are Likely to Fail

This article was published by The McAlvany Intelligence Advisor on Wednesday, September 4, 2019: 

There’s just no other way to say it: the Crown Prince of Saudi Arabia, Mohammad bin Salman, or MBS, is a thug. Upon taking control of the country in 2017, he spent the next two years consolidating his power. Human rights groups have complained loudly about the detentions he ordered and the tortures of dissidents he mandated, about the murders he orchestrated, his bombings of Yemen causing the starvation of millions, the arrest of members of the royal family (confiscating their wealth in exchange for their lives), and, last but not least, his ordering the murder of dissident journalist Jamal Khashoggi last October.

But he has big plans. He wants to turn his country into an international showplace, an uber-tourist attraction, a manufacturing mecca, and the economic centerpiece of the Middle East.

It’s going to take billions of dollars and he knows just where to get the money:

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New York City Power Outage an Early Warning

This article appeared online at TheNewAmerican.com on Wednesday, July 17, 2019: 

Last Saturday’s power outage in New York City affected fewer than 100,000 people in a city of 8.6 million. It lasted less than six hours. It was headline news for a brief moment, and then everything returned to normal.

For Douglas MacKinnon, however, it was an early warning that few are taking seriously. MacKinnon served in the White House as a writer for Presidents Ronald Reagan and George H. W. Bush, and afterwards in a joint command at the Pentagon, where he held a top-secret clearance.

Three weeks before the NYC power outage, MacKinnon wrote an eerily ominous and prescient article for Fox News:

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Another Record for U.S. Crude Oil Production: 12 Million Barrels Per Day in April!

This article appeared online at TheNewAmerican.com on Monday, July 1, 2019: 

Two recent reports confirmed the preeminence of the United States in its production of crude oil and its related derivative, natural gas. Earlier this month British Petroleum (BP) released its “Statistical Review of World Energy” for 2019 in which it reported that the United States extended its lead as the world’s top oil producer to a record 15.3 million bpd (barrels per day): 11 million bpd of crude and 4.3 million bpd of natural gas liquids (NGL) in April.

BP added that the United States led all global oil producers by increasing its production by more than two million bpd in 2018, 98 percent of the total new global production.

Friday’s report from the U.S. Energy Information Agency (EIA) overshadowed that from BP, noting that

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U.S. Enjoying Its New Role as World’s Largest Energy Producer

This article was published by The McAlvany Intelligence Advisor on Monday, July 1, 2019:

There’s an old saying in sales and marketing: “There aren’t too many problems that can’t be solved by sufficient production.” Donald Trump is learning that it also applies to production of crude oil and natural gas. Sufficient production solves many problems.

For one, he delivered a clear and distinct message to Middle East oil producers when he pulled his punch last week and canceled a military response to the shooting down of a U.S. drone surveilling the Strait of Hormuz:

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States Win a Significant Victory on Wednesday

This article was published by the McAlvany Intelligence Advisor on Friday, June 21, 2019: 

When the founders were trying to build a government that recognized the dangers inherent in any government – the inevitable tendency for power to grow and freedom to shrink, as Jefferson noted – it limited the federal government to a few enumerated powers with the others reserved to the states or to the people.

This didn’t satisfy the anti-federalists, who insisted that the powers of the federal government be even further restricted. They demanded additional limitations or they would withhold ratification. Thus was birthed the Bill of Rights. Included is the Tenth Amendment, which captures the essence of the Constitution and Americanism itself: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

President Obama couldn’t have cared less. Back in 2015 he was driven to use the threat of climate change to require the states to implement restrictions on carbon emissions or else his EPA would come in and do it for them.

He called it his “Clean Power Plan.” He based it on two assumptions:

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Trump’s New Plan Puts States Back in Charge of Energy Regulation

This article appeared online at TheNewAmerican.com on Thursday, June 20, 2019:

One of Donald Trump’s key promises while running for president was that, if elected, he would end President Obama’s “war on coal.” On Wednesday the head of the Environmental Protection Agency (EPA) did just that. EPA Administrator Andrew Wheeler finalized his agency’s plans to replace Obama’s “Clean Power Plan” with Trump’s “Affordable Clean Energy” plan.

Wheeler referred obliquely to Obama’s “war on coal” by likening it to the Green New Deal: “The contrast between our approach and the Green New Deal, or plans like it [i.e., Obama’s “Clean Power Plan”], couldn’t be clearer. Rather than Washington telling Americans what type of energy they can use, or how they can travel, or even what they eat, we are working cooperatively with the states to prove affordable, dependable, and diverse supplies of energy that continues to get cleaner and more efficient.”

President Trump added:

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As Oil and Gas Prices Drop, Frackers Declare Bankruptcy

This article appeared online at TheNewAmerican.com on Monday, June 10, 2019: 

Less than two months ago, gasoline prices were headed for $3 a gallon. Today they’re headed for $2 a gallon. This is good news for summer vacationers traveling by car on road trips to theme parks and national parks. Nearly a third of America’s drivers will take a trip by car this summer, burning more than 400 million gallons of fuel every day.

The potential savings are immense, and they’re tax-free.

But not cost free.

U.S. frackers haven’t turned a profit in 10 years, and investors

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Once Marxist Maduro Is Gone, Communist Cuba Is Next

This article appeared online at TheNewAmerican.com on Wednesday, February 27, 2019: 

Communist regimes cannot support themselves, but must rely on outside assistance. Less than a month after communist Fidel Castro came to power in Cuba in 1959 he went to Caracas, Venezuela, hat in hand. He needed Venezuela’s oil and Venezuela’s then-dictator Fulgencio Batista welcomed Castro’s exchange deal: Cuban “assistance” to help stabilize Batista’s tyranny. That assistance came in the form of military and intelligence advisors.

Today those Cuban advisors helping Maduro remain in power number more than 20,000: teachers, coaches, sports trainers, and a large contingent of spies who have infiltrated Maduro’s military and removed dissidents.

When Maduro took over following Hugo Chávez’s death in 2013, he ramped up the deal:

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Hidden Group Blackmails Big Energy to Go Green

This article appeared online at TheNewAmerican.com on Monday, February 25, 2019: 

Recent announcements by major oil, gas, and coal-producing conglomerates that they are now kowtowing in conformity to the Paris Accord have focused the spotlight on the low-profile investor activist group that forced their hands: Climate Action 100+ (CA100+). Launched in 2017, the group boasts “more than 300 investors with over $32 trillion in assets under management” that seek “to ensure that the world’s largest corporate greenhouse emitters take necessary action on climate change.”

Among those investors angling to make the world green by threatening to withhold investment capital include the California Public Employees’ Retirement System (CalPERS), which has $360 billion in assets; Allianz SE (a German investment management company headquartered in Munich), which controls $2.2 trillion; and HSBC Holdings (headquartered in London), with $470 billion under management.

An early success resulting from “negotiations” with top management was Royal Dutch Shell, which agreed to, as Cyril Widdershoven wrote for Oil Price, “officially change its strategy, investing more in renewable energy and energy storage” than they had originally planned. Said Widdershoven:

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U.S. Shale Revolution Continues: Shale Oil Production to Set Record in March, Says EIA

This article appeared online at TheNewAmerican.com on Wednesday, February 20, 2019: 

The report from the U.S. Energy Information Administration (EIA) on Tuesday merely confirmed what the agency predicted just a week earlier: The shale revolution in the United States will not only keep prices of oil and gas low into the foreseeable future, it will make the U.S. a net exporter of energy within 18 months.

The agency expects shale oil production from the seven major shale formations in the country to set a record in March at 8.4 million barrels per day (bpd). This will push total U.S. crude oil production to nearly 12 million bpd, ahead of both Saudi Arabia and Russia.

Bank of America predicts that

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United States Is Now World’s Largest Oil and Gas Producer

This article appeared online at TheNewAmerican.com on Friday, December 7, 2018:

The United States exported more crude oil than it imported last week, for the first time since 1943. The crossing over the threshold to energy independence was inevitable thanks to the fracking revolution and the fading influence of the OPEC cartel that has dictated world oil prices for 60 years. Michael Lynch, president of Strategic Energy & Economic Research, said, “We are becoming the dominant energy power in the world.”

Just last month, U.S. Interior Secretary Ryan Zinke announced that “we are the largest oil and gas producer on the face of the planet, rolling through 11 million [barrels of oil a day] … on our way to 14 [mbd].”

And, along the way, reducing OPEC’s influence. Seniors remember

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OPEC Impotent, Thanks to Saudi-orchestrated Killing

This article appeared online at TheNewAmerican.com on Friday, November 23, 2018: 

Coming out of the emergency meeting by OPEC in Abu Dhabi over the November 10 weekend, Saudi Arabia’s Energy Minister Khalid al-Falih claimed that when the cartel meets officially on December 6 in Vienna, it will “do whatever it takes to balance the oil market.”

That was before evidence of Saudi Arabia’s involvement in the murder of journalist Jamal Khashoggi in early October surfaced. Now the Saudis are faced with trying to “balance” not only global oil market but also their now highly strained relationship with the United States.

President Trump had called on the Saudis to lower oil prices as world crude oil prices moved higher in advance of the sanctions coming on Iran in November. On October 3, the day after Khashoggi was assassinated, American oil prices hit $76 a barrel. When waivers were granted to Iran,

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.
Copyright © 2018 Bob Adelmann