In a recent interview with Reuters, the CEO of Saudi Arabia’s Aramco said his company is looking to expand in the United States where President Donald Trump’s tax cuts and support for the oil industry is making business increasingly attractive.
The company already controls a huge refinery in Texas. Saudi Aramco is also preparing to launch what could be the largest initial public offering (IPO) in the world, and it is considering listing its shares on the New York Stock Exchange (NYSE).
In the interview on the sidelines of the recently concluded World Economic Forum in Davos, Amin Nasser said that they are looking at new business opportunities in the United States which now looks very promising as a result of the new tax cuts. He said the move is in line with Aramco’s cooperate strategy to expand its presence in the US.
Nasser went on to say that the Trump administration has been positive towards the energy industry. “As long as what the Trump administration is doing is in the interest of all and the US economy is growing, we are happy” Nasser added,
Nasser believes that the oil industry as a whole is benefiting from the current US administration policy.
Aramco is a company that provides a significant portion of Saudi Gross Domestic Product (GDP). The kingdom is considering listing the company’s shares on the local stock exchange, Tadawul.
Nasser stated that he was not concerned by a rising number of funds and investors moving away from investing in oil stocks. He said that Saudi is the lowest cost producer in the world, and he is certain Aramco will be attractive.
He went on saying the healthy global demand plus cuts in oil output initiated by the cartel of oil producing countries OPEC, should help oil markets achieve a balance between supply and demand that will lead to a decrease in oil stocks to a five-year average by the end of the year.
Nasser also added that he was not concerned by the increase in US oil exports, though the Saudi market shares in some core markets were decreasing.