Saudi Aramco has a smart management team. While the other supermajors are publicly running away from oil, Saudi Aramco embraces all forms of energy. At least they are upfront about their intentions. The largest oil and gas companies in the past two weeks have quietly taken the steps for large E&P projects.
Saudi Aramco is using its long-term cash cow of oil and gas to set the stage for the 5-year runway to build the blue hydrogen infrastructure and clientele. Which also relies on natural gas to produce blue hydrogen. Very smart management.
As a major energy consumer, Japan relies on domestically produced energy as well as imports from abroad. The government has been promoting the development of alternative, renewable energy resources as part of its climate change policy. Considering the country’s energy needs may be met through solar and wind power, the shipment of ammonia showed that companies are able to mutually benefit from each other’s resources.
Source Bloomberg: “We’re going to have a large share” of the market for blue hydrogen, Aramco’s chief technology officer, Ahmad Al-Khowaiter, said in an interview on Sunday in Dhahran, eastern Saudi Arabia, where the company’s based. “The scale-up isn’t going to happen before 2030. We’re not going to see large volumes of blue ammonia before then.”
“From the time you make clear off-take agreements, you’re talking about a five- to six-year capital cycle to invest in the production and conversion requirements,” Khowaiter said. “You’re talking about a pretty long time scale.”
Personally, I would rather have a management team be upfront with its investors than hide their true path.
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Stu Turley, President, Sandstone Group
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