Oil & Energy Investor by Dr. Kent Moors

Why Energy Investing Will Never be the Same

by | published November 6th, 2019

Our plane was still in route from Heathrow to Miami International when the messages began.

One of my six London meetings over the past week had been with principals in The City (London’s financial district) to compare notes on the impending initial placement offer (IPO) for a minority position in giant Saudi Aramco.

What started out as one of the most anticipated offers in memory when it was first unveiled more than two years ago, has been subject to delay and adverse publicity hitting the country, and its young heir apparent Crown Prince Mohammad bin Salman (MbS).

Among my network of contacts, word had been circulating at the end of last week about some significant problems once again surfacing concerning the IPO. Despite the hype about expediting the sale, there had been renewed indications that it would again be delayed.

This development also had a last-minute effect on my earlier meeting in New York City. On October 18, I discussed some main takeaways from the Saudi decision in an Oil & Energy Investor column written while I was flying back to Florida (read it right here).

But there is a deeper factor in all of this, and it cuts to the core of the current Persian Gulf crisis.

In the attempt to attract an acceptable price for the sale of a minority stake in the world’s largest state-owned oil company, Riyadh needs to persuade the global investment community that it can sustain enough security for its fixed oil production and processing assets.

And that, in turn, requires control it no longer has.

The Situation Room: IPOs and International Shipping Concerns

by | published November 4th, 2019

Welcome back to the Situation Room, Oil & Energy Investors.

After a very busy week in London, it’s good to be back stateside. As much as I enjoy the travel and time among my colleagues on the other side of the Atlantic, sometimes what you want most is to return to the familiar.

However, that doesn’t mean that I will be any less busy.

Here are the four major issues that will have my attention this week…