The economic recovery in 2021 has led to an explosive increase in fossil fuel consumption on Earth. After hitting a record low in 2020 in the midst of a pandemic, the engines of global industry have revived to full throttle last year. As a result, Saudi Aramco surpassed pre-pandemic levels a few hours after a new attack by neighboring Yemeni rebels on the Saudi giant’s facility, with a net profit of 2021 compared to 2020. Announced an increase of 124%. One of these attacks on the YASREF refinery in Yanbu, Red Sea, led to a “temporary production decline,” but the Ministry of Energy further clarifies that it is still “compensated by inventory.” Shown without.
As the war in Yemen intensifies, the region is in the midst of strong geopolitical shocks amid tensions in oil markets around the world. Russia’s invasion of Ukraine has led to high fluctuations in energy prices in recent weeks. The prospect of a prolonged war at the doorstep of the European Union could further destabilize the region.
Net profit of 110 billion euros
In a statement, Aramco said it had a net profit of $ 110 billion (€ 99 billion) in 2021, compared to $ 49 billion in 2020. In 2019, before the coronavirus pandemic hit the market, it reported a net profit of $ 88.2 billion. There are significant losses, especially in the oil and aviation sectors. By comparison, TotalEnergies made a profit of $ 16 billion last year.
Aramco’s announcement was made amid a tight oil market as oil prices soared following Russia’s invasion of Ukraine. And a few hours after a new attack by the Houthi rebels on the Aramco facility in southern Saudi Arabia, the country leading a military coalition supporting Yemen’s forces against the Houthi rebels backed by Iran.
According to the coalition, Saudi anti-aircraft defenses destroyed ballistic missiles and nine drones, but missiles and drones captured by Booby attacked targets, including the Aramco power distribution station in the south and the group’s gas liquefaction plant in the west. did. There was property damage.
Houthis argued responsible for attacks on “important and important” facilities. On Sunday night, the coalition announced a “new hostile attack” targeting Aramco’s “petroleum product distribution station” in Jeddah.
U.S. National Security Adviser Jake Sullivan condemned the “terrorist” attack in a statement, saying Washington “will continue to fully support (its) partners in defending their territory against the Houthi attack.” rice field.
The Gulf Cooperation Council, a group of six Arab oil monarchies led by Saudi Arabia, has proposed a meeting in Riyadh from March 29 to resolve the conflict in Yemen. However, the Houthis showed that they would not enter the “enemy” territory, saying they did not oppose the principles of negotiation.
In a statement, Aramco CEO Amin Nasser said, “Despite the pandemic challenges and difficult global conditions, 2021 is exceptional for Aramco in terms of finance and performance, initiatives, outcomes and investment. Was emphasized. “These strong results show our focus on budget discipline, flexibility in the face of changing market conditions, and long-term growth strategies.”
“The outlook remains uncertain due to various macroeconomic and geopolitical factors,” Amin Nacelle emphasized.
But he said, “Energy security is essential for billions of people around the world, so we continue to make progress, increase our oil production capacity, run gas expansion programs, and convert liquids into chemicals. I am improving my ability. “
Saudi Arabia, the world’s largest oil exporter, is using the Kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), to diversify its oil-dependent economy, both domestically and globally. We are investing in the sector.
In February, the Kingdom “transferred” 4% of Aramco’s stake to $ 80 billion worth of PIF. This is an activity aimed at “supporting the reorganization of the national economy.”
In April 2021, Crown Prince Mohammed bin Salman (MBS) indicated that Aramco was considering selling 1% of its stake to a foreign energy giant. According to Saudi Aramco, capital spending in 2021 was $ 31.9 billion, an increase of 18% from 2020. The company “plans to spend about $ 40-50 billion on capital in 2022 and will grow further by mid-2010.”