Who Really Controls the Oil... By Dr. Steve Sjuggerud - GoFuckYourself.com

Theo · 08-08-2005, 03:45 PM

interesting

Earlier this year, after announcing record revenues of $25 billion for 2004, ExxonMobil became the world's largest company...

The record revenues come on the heels of a "perfect storm" in the oil markets... tight supply, high demand, fear and financial speculation have all come together to drive oil prices higher.

Wait, I've got to clarify something... Yes, Exxon had record profits and hit $400 billion in stock market value, making it larger than Microsoft, Wal-Mart, GE, or any other company in the world.

However Saudi Arabia's Aramco has over 20 times the reserves of ExxonMobil, any way you size it up. So ExxonMobil can't possibly be the world's largest company. With over 260 billion barrels in reserves in the ground, and at an oil price of $60, Aramco has over $15 trillion worth of oil in the ground today. Comparing apples to apples (oil, without natural gas factored in), ExxonMobil doesn't even have a trillion dollars worth of oil.

Who's Got the Oil?

Saudi Arabia's national oil company, Aramco (which is 100% government-owned, of course), has the world's largest pile of oil reserves, by far. But who's next? And where does the U.S. stand? What about China? And how about Canada's oil sands... where do they fit in?

I was curious. So I asked geologist and friend Matt Badiali to give me the details. Take a look:

Countries with largest oil reserves (in billions of barrels), year-end 2004:

1. Saudi Arabia 263
2. Canada* 17*
3. Iran 132
4. Iraq 115
5. Kuwait 99
6. UAE 98
7. Venezuela 77
8. Russia 72
9. Libya 39
10. Nigeria 35
11. US 29
12. China 17

Source: EIA, BP Statistical Review
*Canada's oil sands not counted in this total

The picture is fairly clear... Two-thirds of the world's oil reserves are in the Persian Gulf, where foreign firms aren't particularly welcome. Making matters worse, we've seen a rise of what's called "resource nationalism," which is choking off access to new reserves. With the exception of Canada and the potential offered by its oil sands, there's not a developed country in the Top 10.

The Biggest Oil Stocks

ExxonMobil is the world's biggest oil stock. I find it interesting that Russia's Lukoil has almost as much in reserves (specifically, MBOE, millions of barrels of oil-equivalent units) as Exxon, yet it trades at just 1/10th the value.

Below is a table of the world's largest publicly traded oil companies. I mentally separate them into developed country stocks and emerging market stocks, and then mentally give a "discount" to the emerging market stocks.

Company Reserves* Stock Market Value (in US$bn)
Exxon Mobil 21.2 377.0
BP 14.6 249.8
Total 11.1 152.6
PetroChina 11 161.8
Royal Dutch 14.4 133.5
Chevron 8.5 129.9
Lukoil 20.0 35.6

*Source: Hoovers. Reserves data in MBOE (millions of barrels of oil equivalent units, so it includes all hydrocarbon reserves)

When you think about them like this, PetroChina looks expensive, trading at the same market value-to-reserves as the developed country stocks. And Royal Dutch Shell looks like the least expensive developed-country major (where you get the most reserves per dollar invested). This is nothing scientific, of course, we're just sizing up the world.

So who controls the oil? Exxon is the giant among publicly traded oil companies. But Exxon pales in comparison to Saudi Arabia, and its state-owned oil company, Aramco.

Geologist Matt Badiali believes that oil prices won't be able to fall significantly until large investments are made in infrastructure worldwide. So the price of oil can stay high.

Exxon, BP, and Royal Dutch will of course be beneficiaries. But the biggest beneficiary will likely be Saudi Arabia.

So when someone asks, who controls the oil? The answer is no surprise... it's not Exxon... it's Saudi Arabia.

dvmspb · 08-08-2005, 03:45 PM

i second this statement

Buy and sell traffic made easy!

The Ghost · 08-08-2005, 03:52 PM

Great stocks: PVX and PWI

Anyone with other great oil stocks?

BlueDesignStudios · 08-08-2005, 04:05 PM

and who controls saudi arabia? they're just a puppet kingdom for the US

davethetruth · 08-08-2005, 04:29 PM

Quote:

Originally Posted by BlueDesignStudios

and who controls saudi arabia? they're just a puppet kingdom for the US

Then how come they've never worked with the US to catch the fugitives hiding there?

This is something I've never understood. If we're "in bed with them" so much then how come they've never helped us apprehend all the people that go there or reside there?

BlueDesignStudios · 08-08-2005, 04:39 PM

Quote:

Originally Posted by davethetruth

Then how come they've never worked with the US to catch the fugitives hiding there?

This is something I've never understood. If we're "in bed with them" so much then how come they've never helped us apprehend all the people that go there or reside there?

because they are an unpopular monarchy and must balance the fine line between religion (wahhabism) and being compliant with the US wishes - their agreement with the US following WW2 is we provide a cheap and steady flow of oil, and you support our undemocratic government

ever wondered why the US never mentions saudi arabia when they speak of freedom & democracy in the middle east? if saudi arabia became democratic and followed the popular policies, using oil as a weapon as they did in the mid 1970's, oil prices would instantly jump to over $100/barrel

Theo · 08-08-2005, 04:46 PM

Quote:

Originally Posted by BlueDesignStudios

and who controls saudi arabia? they're just a puppet kingdom for the US

not true, SA has significant influence on USA, but this doesnt mean anything more than it really is. Too many forces, multiple influences and interests, no country is on top of everything and everyone. The world is more complex than U"SA is the greatest power on earth" and "China will take over everything in a decade."

wallst · 08-08-2005, 04:57 PM

awsome thread dude...gotta see the macro picture

BlueDesignStudios · 08-08-2005, 04:58 PM

Quote:

Originally Posted by Soul_Rebel

not true, SA has significant influence on USA, but this doesnt mean anything more than it really is. Too many forces, multiple influences and interests, no country is on top of everything and everyone. The world is more complex than U"SA is the greatest power on earth" and "China will take over everything in a decade."

I would normally agree with that statement, however in the case of USA & Saudi Arabia, the relationship is somewhat transparent

Bird · 08-08-2005, 05:27 PM

Trades,

Why can't you you buy vaseline in tbilisi, the georgians will tell you the truth.

the best example is in the Born Supremecy it explains some of it, and who's in control.

dready · 08-08-2005, 05:32 PM

Reserves in Saudi Arabia are based on what they tell us they have. They will not allow anyone to verify their reserves.

mardigras · 08-08-2005, 05:49 PM

It doesn't take much to affect the oil market. When King Faud died there was a jump in price, like there was going to be any difference in SA without him. BTW, oil just passed $64 a barrel...

Anyone catch the movie "Oil Storm" on FX a couple months ago? It was extremely fascinating. It was set after a large hurricane disrupts the gulf oil industry in Sept 2005 and the snowballing international effect. It was done as if it were a documentary with very realistic news footage.

tristan_D · 08-08-2005, 06:04 PM

you raised some very good points there.

KRL · 08-08-2005, 06:24 PM

When I was in college I dated a girl from Saudi Arabia. Her father was the head of Aramco.

Should have hung on to that one.

mardigras · 08-08-2005, 06:30 PM

Quote:

Originally Posted by KRL

When I was in college I dated a girl from Saudi Arabia. Her father was the head of Aramco.

Should have hung on to that one.

We all have our regrets

SmokeyTheBear · 08-08-2005, 06:58 PM

How much oil does this guy own ??

I dont trust him because if he doesn't own any oil , why or how does he know so much about who controls it..

SmokeyTheBear · 08-08-2005, 07:00 PM

Canada prob has the lowest population also , so canada has the second most oil and least people to use it

Smart wait till everyone else has used theirs up

davidd · 08-08-2005, 07:13 PM

Quote:

Originally Posted by Ghost Pro Sales

Great stocks: PVX and PWI

Anyone with other great oil stocks?

CanRoy are a great way to pull some cash, but watch out for the lifespan.

On another note, I would trade them on the Toronto Exchange.

Toronto Exchange: AVN.to SPN.to

NYSE: SBR, SJT, WTU, CRT

A wildcard on the Toronto exchange: CLE.to (non oil energy resources)

je_rome · 08-08-2005, 07:18 PM

interesting read here.. i totally agree with the points raised there.

davidd · 08-08-2005, 07:23 PM

Quote:

Originally Posted by SmokeyTheBear

How much oil does this guy own ??

I dont trust him because if he doesn't own any oil , why or how does he know so much about who controls it..

Dr. Steve Sjuggerud, the author of the article, handles a large chunk of my money. He is usually spot on, and a great guy.

Google him, he caters to a different type of client.

Jake_Masters · 08-08-2005, 07:42 PM

The Rockefellers own Exxon:

Both Exxon and Mobil were descendants of the old John D. Rockefeller monopoly, Standard Oil. In 1911, after a United States Supreme Court ruling which upheld a federal court order to dissolve it, the Standard Oil Trust was split into 34 companies. Two of these companies were Jersey Standard, which eventually became Exxon, and Socony ("Standard Oil Company of New York"), which eventually became Mobil. 1917 painting by John Singer Sargent. ... 1911 is a common year starting on Sunday (click on link for calendar). ... The Supreme Court Building, Washington, D.C. The Supreme Court Building, Washington, D.C., (large image) The Supreme Court of the United States, located in Washington, D.C., is the highest court (see supreme court) in the United States; that is, it has ultimate judicial authority within the United States... Standard Oil was an oil refining organization founded by John D. Rockefeller (1839-1937) and partners beginning in 1863. ... Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), headquartered in Irving, Texas, is an oil producer and distributor formed on November 30, 1999, by the merger of Exxon and Mobil. ... Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), headquartered in Irving, Texas, is an oil producer and distributor formed on November 30, 1999, by the merger of Exxon and Mobil. ...

sniperwolf · 08-08-2005, 07:56 PM

Quote:

Originally Posted by Jake_Masters

The Rockefellers own Exxon:

Both Exxon and Mobil were descendants of the old John D. Rockefeller monopoly, Standard Oil. In 1911, after a United States Supreme Court ruling which upheld a federal court order to dissolve it, the Standard Oil Trust was split into 34 companies. Two of these companies were Jersey Standard, which eventually became Exxon, and Socony ("Standard Oil Company of New York"), which eventually became Mobil. 1917 painting by John Singer Sargent. ... 1911 is a common year starting on Sunday (click on link for calendar). ... The Supreme Court Building, Washington, D.C. The Supreme Court Building, Washington, D.C., (large image) The Supreme Court of the United States, located in Washington, D.C., is the highest court (see supreme court) in the United States; that is, it has ultimate judicial authority within the United States... Standard Oil was an oil refining organization founded by John D. Rockefeller (1839-1937) and partners beginning in 1863. ... Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), headquartered in Irving, Texas, is an oil producer and distributor formed on November 30, 1999, by the merger of Exxon and Mobil. ... Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), headquartered in Irving, Texas, is an oil producer and distributor formed on November 30, 1999, by the merger of Exxon and Mobil. ...

great business tycoons ...

welcome to GFY dude!

BlueDesignStudios · 08-08-2005, 08:00 PM

Quote:

Originally Posted by KRL

When I was in college I dated a girl from Saudi Arabia. Her father was the head of Aramco.

Should have hung on to that one.

ouch.. i feel for you just reading that

PixeLs · 08-09-2005, 12:21 AM

"resource nationalism,"--it's my first time to hear this term, and only here at GFY forum. ;)

VeriSexy · 08-09-2005, 12:47 AM

This war is working out very well for the big oil companies and the consumers are getting rolled

slavdogg · 08-09-2005, 01:34 AM

anyone know what the current price of Canadian oil is ???

Russian oil about 2 weeks ago was at $45 / barrel

Jake_Masters · 08-20-2005, 10:46 AM

Quote:

Originally Posted by VeriSexy

This war is working out very well for the big oil companies and the consumers are getting rolled

America isn't getting the oil and neither is Iraq. The only ones who are going to cash in are the big multinationals.

Wizzo · 08-20-2005, 10:54 AM

This isn't news, anyone that knows anything about oil, other than they make gas from it, knows the Saudis are Moster Whales of the industry and actually I think those #s are a little low... Some put the Saudis as high as 50% of the world's TOTAL reserves...

Theo · 04-27-2006, 12:59 PM

_booom_+

Theo · 04-27-2006, 01:06 PM

I laugh the most with those that thought getting iraqi oil under US control will lower the price of it in the states.

Pornwolf · 04-27-2006, 01:22 PM

It was a babystep in a much larger and longer plan. Saudi Arabia is not safe from us. It may be 20 years before the truth comes out but it will soon enough. We have Iran & Syria to shake down first.

The Duck · 04-27-2006, 01:42 PM

Germany is building the worlds first fusion reactor, unlimited power. The sun for one is a natural fusion reactor.

germ · 04-27-2006, 02:13 PM

Quote:

Originally Posted by kandah

Germany is building the worlds first fusion reactor, unlimited power. The sun for one is a natural fusion reactor.

isnt that technology pretty damn far away, though?

08-08-2005, 03:45 PM	#1
Theo HAL 9000 Industry Role: Join Date: May 2001 Posts: 34,515	Who Really Controls the Oil... By Dr. Steve Sjuggerud interesting Earlier this year, after announcing record revenues of $25 billion for 2004, ExxonMobil became the world's largest company... The record revenues come on the heels of a "perfect storm" in the oil markets... tight supply, high demand, fear and financial speculation have all come together to drive oil prices higher. Wait, I've got to clarify something... Yes, Exxon had record profits and hit $400 billion in stock market value, making it larger than Microsoft, Wal-Mart, GE, or any other company in the world. However Saudi Arabia's Aramco has over 20 times the reserves of ExxonMobil, any way you size it up. So ExxonMobil can't possibly be the world's largest company. With over 260 billion barrels in reserves in the ground, and at an oil price of $60, Aramco has over $15 trillion worth of oil in the ground today. Comparing apples to apples (oil, without natural gas factored in), ExxonMobil doesn't even have a trillion dollars worth of oil. Who's Got the Oil? Saudi Arabia's national oil company, Aramco (which is 100% government-owned, of course), has the world's largest pile of oil reserves, by far. But who's next? And where does the U.S. stand? What about China? And how about Canada's oil sands... where do they fit in? I was curious. So I asked geologist and friend Matt Badiali to give me the details. Take a look: Countries with largest oil reserves (in billions of barrels), year-end 2004: 1. Saudi Arabia 263 2. Canada* 17* 3. Iran 132 4. Iraq 115 5. Kuwait 99 6. UAE 98 7. Venezuela 77 8. Russia 72 9. Libya 39 10. Nigeria 35 11. US 29 12. China 17 Source: EIA, BP Statistical Review Canada's oil sands not counted in this total The picture is fairly clear... Two-thirds of the world's oil reserves are in the Persian Gulf, where foreign firms aren't particularly welcome. Making matters worse, we've seen a rise of what's called "resource nationalism," which is choking off access to new reserves. With the exception of Canada and the potential offered by its oil sands, there's not a developed country in the Top 10. The Biggest Oil Stocks ExxonMobil is the world's biggest oil stock. I find it interesting that Russia's Lukoil has almost as much in reserves (specifically, MBOE, millions of barrels of oil-equivalent units) as Exxon, yet it trades at just 1/10th the value. Below is a table of the world's largest publicly traded oil companies. I mentally separate them into developed country stocks and emerging market stocks, and then mentally give a "discount" to the emerging market stocks. Company Reserves Stock Market Value (in US$bn) Exxon Mobil 21.2 377.0 BP 14.6 249.8 Total 11.1 152.6 PetroChina 11 161.8 Royal Dutch 14.4 133.5 Chevron 8.5 129.9 Lukoil 20.0 35.6 *Source: Hoovers. Reserves data in MBOE (millions of barrels of oil equivalent units, so it includes all hydrocarbon reserves) When you think about them like this, PetroChina looks expensive, trading at the same market value-to-reserves as the developed country stocks. And Royal Dutch Shell looks like the least expensive developed-country major (where you get the most reserves per dollar invested). This is nothing scientific, of course, we're just sizing up the world. So who controls the oil? Exxon is the giant among publicly traded oil companies. But Exxon pales in comparison to Saudi Arabia, and its state-owned oil company, Aramco. Geologist Matt Badiali believes that oil prices won't be able to fall significantly until large investments are made in infrastructure worldwide. So the price of oil can stay high. Exxon, BP, and Royal Dutch will of course be beneficiaries. But the biggest beneficiary will likely be Saudi Arabia. So when someone asks, who controls the oil? The answer is no surprise... it's not Exxon... it's Saudi Arabia.

08-08-2005, 03:52 PM	#3
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08-08-2005, 04:05 PM	#4
BlueDesignStudios Confirmed User Industry Role: Join Date: Feb 2003 Location: Australia Posts: 9,492	and who controls saudi arabia? they're just a puppet kingdom for the US __________________ Blue Design Studios - Adult Design Specialists! Email me for a free quote: [email protected]

08-08-2005, 04:57 PM	#8
wallst Confirmed User Join Date: Aug 2004 Location: South East Posts: 1,621	awsome thread dude...gotta see the macro picture __________________ Earl Miller Cash 20th Congress

08-08-2005, 05:27 PM	#10
Bird Confirmed User Join Date: Jan 2005 Location: Stockton Posts: 4,365	You people still don't get it..... Trades, Why can't you you buy vaseline in tbilisi, the georgians will tell you the truth. the best example is in the Born Supremecy it explains some of it, and who's in control. __________________ ICQ:268731675

08-08-2005, 03:45 PM	#2
dvmspb Registered User Join Date: Jul 2005 Posts: 80	i second this statement Buy and sell traffic made easy!

08-08-2005, 05:32 PM	#11
dready Confirmed User Industry Role: Join Date: Oct 2002 Location: Toronto, ON Posts: 5,247	Reserves in Saudi Arabia are based on what they tell us they have. They will not allow anyone to verify their reserves. __________________ ICQ: 91139591

08-08-2005, 05:49 PM	#12
mardigras Bon temps! Join Date: Feb 2003 Location: down yonder Posts: 14,194	It doesn't take much to affect the oil market. When King Faud died there was a jump in price, like there was going to be any difference in SA without him. BTW, oil just passed $64 a barrel... Anyone catch the movie "Oil Storm" on FX a couple months ago? It was extremely fascinating. It was set after a large hurricane disrupts the gulf oil industry in Sept 2005 and the snowballing international effect. It was done as if it were a documentary with very realistic news footage. __________________ .

08-08-2005, 06:04 PM	#13
tristan_D Confirmed User Join Date: Jul 2005 Posts: 7,865	you raised some very good points there. __________________ Increase your sales. Up to $4 per click.

08-08-2005, 06:24 PM	#14
KRL Entrepreneur Join Date: Oct 2002 Location: USA Posts: 31,429	When I was in college I dated a girl from Saudi Arabia. Her father was the head of Aramco. Should have hung on to that one. __________________ If you would like to develop your domains, you can lease inexpensive foreign labor from the leaders in the field at iWebmasters.com TO LOWER YOUR COSTS AND INCREASE YOUR PRODUCTION! * * * * * * * * * * * * Domains Adult News KRL's Newsletter Biz Tips Just Listed Domains

08-08-2005, 06:58 PM	#16
SmokeyTheBear ►SouthOfHeaven Join Date: Jun 2004 Location: PlanetEarth MyBoardRank: GerbilMaster My-Penis-Size: extralarge MyWeapon: Computer Posts: 28,609	How much oil does this guy own ?? I dont trust him because if he doesn't own any oil , why or how does he know so much about who controls it.. __________________ hatisblack at yahoo.com

08-08-2005, 07:00 PM	#17
SmokeyTheBear ►SouthOfHeaven Join Date: Jun 2004 Location: PlanetEarth MyBoardRank: GerbilMaster My-Penis-Size: extralarge MyWeapon: Computer Posts: 28,609	Canada prob has the lowest population also , so canada has the second most oil and least people to use it Smart wait till everyone else has used theirs up __________________ hatisblack at yahoo.com

08-08-2005, 07:18 PM	#19
je_rome Confirmed User Join Date: Jul 2005 Posts: 6,846	interesting read here.. i totally agree with the points raised there. __________________ Make money on any traffic. Join KlikRevenue.com Today!

08-08-2005, 07:42 PM	#21
Jake_Masters Registered User Join Date: Nov 2004 Posts: 10	The Rockefellers own Exxon: Both Exxon and Mobil were descendants of the old John D. Rockefeller monopoly, Standard Oil. In 1911, after a United States Supreme Court ruling which upheld a federal court order to dissolve it, the Standard Oil Trust was split into 34 companies. Two of these companies were Jersey Standard, which eventually became Exxon, and Socony ("Standard Oil Company of New York"), which eventually became Mobil. 1917 painting by John Singer Sargent. ... 1911 is a common year starting on Sunday (click on link for calendar). ... The Supreme Court Building, Washington, D.C. The Supreme Court Building, Washington, D.C., (large image) The Supreme Court of the United States, located in Washington, D.C., is the highest court (see supreme court) in the United States; that is, it has ultimate judicial authority within the United States... Standard Oil was an oil refining organization founded by John D. Rockefeller (1839-1937) and partners beginning in 1863. ... Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), headquartered in Irving, Texas, is an oil producer and distributor formed on November 30, 1999, by the merger of Exxon and Mobil. ... Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), headquartered in Irving, Texas, is an oil producer and distributor formed on November 30, 1999, by the merger of Exxon and Mobil. ...

08-09-2005, 12:21 AM	#24
PixeLs Too lazy to set a custom title Join Date: Jul 2005 Posts: 11,922	"resource nationalism,"--it's my first time to hear this term, and only here at GFY forum. ;) __________________ Make money on any traffic. Bi-weekly payments with no hold.

08-09-2005, 12:47 AM	#25
VeriSexy Join The Royal Family Join Date: Apr 2002 Posts: 25,463	This war is working out very well for the big oil companies and the consumers are getting rolled __________________ Looking for a KICK ASS TEEN SPONSOR? Check out ROYAL CASH - THE KING OF TEEN! Incredible webmaster tools FHGs, Morphing Blog and RSS Feeds, Embedded FLV & WMV Videos. With TOP RATIO Sites like TeenStarsOnly.com - Earn $$ with our New Site & Bonus Payouts!! ATMovs.com \| iTeenVideo.com \| TeenSexMovs.com \| TeenSexMania.com

08-09-2005, 01:34 AM	#26
slavdogg Confirmed User Join Date: Jan 2001 Posts: 3,570	anyone know what the current price of Canadian oil is ??? Russian oil about 2 weeks ago was at $45 / barrel __________________ Adult Traffic for Sale

08-20-2005, 10:54 AM	#28
Wizzo 2011 GFY Hall of Fame! Industry Role: Join Date: Nov 2000 Location: Back in Texas! Posts: 15,224	This isn't news, anyone that knows anything about oil, other than they make gas from it, knows the Saudis are Moster Whales of the industry and actually I think those #s are a little low... Some put the Saudis as high as 50% of the world's TOTAL reserves... __________________ Looking for Opportunity!

04-27-2006, 12:59 PM	#29
Theo HAL 9000 Industry Role: Join Date: May 2001 Posts: 34,515	_booom_+

04-27-2006, 01:06 PM	#30
Theo HAL 9000 Industry Role: Join Date: May 2001 Posts: 34,515	I laugh the most with those that thought getting iraqi oil under US control will lower the price of it in the states.

04-27-2006, 01:22 PM	#31
Pornwolf Drunk and Unruly Join Date: Jan 2002 Location: Hollywood Posts: 22,712	It was a babystep in a much larger and longer plan. Saudi Arabia is not safe from us. It may be 20 years before the truth comes out but it will soon enough. We have Iran & Syria to shake down first. __________________ I've trusted my sites to them for over a decade... Webair, bitches.

04-27-2006, 01:42 PM	#32
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