The most profitable company in the world is Saudi Aramco which is majority controlled by the Saudi Arabia and has access to the least costly oil to drill (their base price is $2.60 per barrel, which allowed it to pay $75 billion in dividends). Saudi still has billions of barrels of oil in the country and although there is a push to electrify the vehicles in the world, do not expect the end of oil usage.
In North America we are North America centric, but in the world there exists other economies do the same or similar things as in North America. In an article by Muyu Xu and Florence Tan of Reuters, Chief Executive of Saudi Aramco Amin Nasser was at the China Development Forum and told the Chinese that Saudi Aramco will supply China all the oil they need for the next 50 years and they will be top priority.
Saudi Arabia, is the world’s biggest oil exporter and supplier China with 1.86 million barrels a day up 2.1% for the month’s of January and February.
The second biggest supplier to China is Russia. Mr. Nasser noted we appreciate that sustainable energy solutions are crucial to a faster and smoother global transition but it will take time. Chinese demands was very close to prepandemic levels, while Asia and East Asia has seen a strong pickup.
Chinese President Xi Jinping announced in September that China would brings it peak carbon emissions by 2030 and reached carbon neutrality by 2060.
Mr. Nasser expects opportunities in downstream projects to help to meet China’s needs for heavy transport and chemicals, as well as lubricants and non-metallic materials.
Experts from China National Petroleum Corp’s research institute have forecasted China’s oil demand will cap at 730 million tonnes by 2025.
Linking to dividend paying stocks, we all know the world is changing, but it takes time. Time is on your side when you buy dividend paying stocks because you can enjoy the dividends and look for alternatives at a leisurely basis. If the dividends or profitability of your investments changes, you can easily make changes to the alternatives you have researched.
There are more questions than answers, till the next time – to raising questions.