How Oil Fueled The World's Biggest Company

The world’s most valuable company is not Apple, Amazon, or Google. That crown instead belongs to Saudi Aramco. This is the story of how an oil company that started out as an American dream became Saudi Arabia's cash cow.
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[@flight9094]

As a saudi i have never heard or seen anyone calling MBS “Mr.Everything”

[@laracroft938]

How does it feel to have your country named after a dude?

[@vtc4ever]

@@laracroft938 It's an honor for all of us.

[@nawafnk]

He is if didn't know that your problem all powers are with the Crown Prince that fact not fiction .

[@kp5602]

@@nawafnk He is not called Mr. Everything, he has never been called that at all either. Show me one saudi calling him that.

[@kp5602]

They claim his titles are "Mr Everything" and "Abo Rasasah" Its easy for the media to lie and this is one of their many lies.

[@drakotv8462]

8:35 dude in the back definitely a robot

[@phantomroblox5724]

Completely missed that🤣🤣🤣🤣

[@kashmirha]

(He was probably the translator ready to jump in and help. It could cost a few billion dollars if the Aramco guy mix up something)

[@hendrikjanssen9075]

I am always frustrated when people mix up a stock value (Aramaco listing) with a flow value (gdp of countries).

[@farzana6676]

Yeah, revenue vs GDP would be a better measure

[@ParissaKhoury]

@@farzana6676 Agreed 👍👍

[@cartmanbrah01]

What is each one of them ? Could you please explain.?

[@chriscole344]

@@cartmanbrah01 Stock value is how much it would take to buy the company. GDP is how much a country produces in a year. A better comparison would be to compare the value of a country with stock value, or revenue of a company with GDP.

[@faisalalharbi6971]

@@cartmanbrah01 If you have a company that gives you a profit of 100k each year, will you sell it for 100k? That would be insane.. Because its value should be much bigger.. This is basically how GDP and stock values differ. If we were going to value each country based on *stock values* rather than annual gdp, their numbers will go 10x times higher, at the very least.

[@AhmedHassan-cj8yi]

I recognized the narrator voice as Andy from headspace. Man this guys voice and his app helped me a lot.

[@Btt8]

Anybody that invests in oil is playing musical chairs

[@jibrankhantareen7300]

And Elon Musk is controlling the music

[@kryptoknight992]

cringe

[@YashasviGoel]

@@jibrankhantareen7300 not anytime soon is the music going to stop

[@QuickScopingPerk]

Wow fucking beautifully put

[@alanmay7929]

@@jibrankhantareen7300 ok tell tesla to stop using plastic parts or oil or tires.... in his cars . also stop using "gas guzzlers" to build his gigafactories or ship cars

[@michelleparis6283]

" If Aramco were a country, it would actually be in the top 10 world economies" That's definitely not true. GDP is not about market capitalization. apple has a market cap of over 1 trillion dollars and it only about 1.5% of all US GDP. Its what a company produces in goods and services that is part of GDP not its market cap.

[@mohaamd_7505]

Well Aramco produces 15% of global energy supply.

[@splats6164]

Aramco money is part of the government's

[@hamzamehmood1976]

@@mohaamd_7505 10%

[@2023awakening]

@@mohaamd_7505 no it doesn't

[@mohaamd_7505]

hamza mehmood At the moment, considering low global energy demand, its producing only 10%. Though its full capacity is 15%, probably even more if it wasn’t for low prices.

[@rext8949]

Aramco has ironically seen its best valuation with the IPO. A combination of factors including more oil producers as well as alternative fuels and natural energy resources will engender its downfall. OPEC is a shadow of its former self and can no longer dictate oil prices. Oil is definitely counting the years to peak consumption and production. These swiftly moving dynamics will comdemn it to the same fate that ExxonMobil finds itself today in.

[@NotoriousRawDogger]

That bubble gon burst hard.

[@kamkoamoh]

It is still a lot to "became green", and the income from Oil will still be actual, and the revenue from it will increase with time. A vast majority of companies and industries rely on oil.

[@chancebrewer793]

I'd also like to add with the introduction of fossil fuels such as oil human life expectancy has increased substantially so getting rid of fossil fuels without giving a suitable replacement would be by definition anti human

[@aleonflex6611]

chance brewer What? Dafuq you talking about? Anti human? Human life expectancy increase because of better standard of living and better medicine.

[@jieranli]

Define market size. If we’re talking about GDP, you’re pulling number out of thin air.

[@Bobelponge123]

Valuation of stock markt I believe

[@michelleparis6283]

He is confusing GDP with market capitalization. His numbers are wrong.

[@vtc4ever]

GDP as the majority of KSA's GDP is pumped from ARAMCO. That's what they're going with it.

[@visiblehiggs130]

Dame black gold

[@opportunityinvestinganalys6986]

Hope they start investing into renewables, if they want to retain similar valuation in the near future.

[@jen_nice2059]

Opportunity Investing Analysis apparently this why it went public: to use the proceeds to fund alternative energy and investments.

[@danii5630]

I hope they go down when earth becomes intelligent and stops giving Arabia billions of dollars...

[@Dennis-ns1yx]

Why? Renewable don't give you 2 trillion dollars, oil does. It's better if they invest in education and innovation than renewable garbage

[@hadialthawab8123]

Pretty sure they are

[@lorenzobolis5166]

Comparing the capitalization of a company to the gdp of a country is no different than comparing apples and oranges, how can you do it and call it journalism?

[@jen_nice2059]

Lorenzo Bolis macro vs micro = economics;

[@TheZachary86]

Lorenzo Bolis This is just used as visualisation for its audience on the scale of the IPO.

[@wowthatscool1324]

Wow so early to a Bloomberg video 👏🏼👌🏼

[@QueenetBowie]

Surprised it’s not still incorporated in Delaware, I figured everything on earth is incorporated there.

[@greenboy654]

Delaware has easy business incorporation law, many foreign companies and now startups register in Delaware because of cheap incorporation fees and less bureaucratic bullshit.

[@jen_nice2059]

Not to mention, no corporate taxes. Add Nevada to that list as well.

[@ParissaKhoury]

Plot Twist: Greta Thunberg has just incorporated her new 'HOW DARE YOU?' clothing line in Delaware as well.

[@splats6164]

Aramco and its employees said oilbos not going anywhere. We are also working on other means of power not just oil

[@joeblack4436]

OIl demand subsiding? Late 2020? More like the latter half of 2020 to be exact. I hope all the people forced to buy shares make their money back in time lol

[@missema8062]

The new leadership in Saudi Arabia is doing a great job. The transformation in such a short time is amazing.

[@moviesuggestions6660]

In what way may i asking?

[@fudgerace4356]

@@moviesuggestions6660 they r gonna more open to the world, less isolated and less conservative... They want to diversify their ecnonomy just like Dubai UAE..

[@wiskasIO]

Microsoft: That's nice.

[@missema8062]

I am sure this work has not come overnight. It is accumulative hard efforts for the past years. All I can say well done.

[@luckylove72]

They failed to include opportunity cost in their valuation calculation.

[@unobooks]

they really got screwed on the bell

[@ParissaKhoury]

Plot Twist: Greta Thunberg bought $5 Billion worth of Saudi Aramco shares.

[@ZAR556]

Rockerfeller and friends, LIKE this video of monopoly domination

[@pfsalinger7195]

If Aramco is worth a trillion then what’s CHK

[@Leszlig]

With such a small public float, its exponentially easy for the Saudi's to push up the valuation. Try floating more shares and see if that valuation sticks - highly doubt it. Nearly 50% of their profits are paid out in dividends to the Saudi government and it is explicitly stated in the investor prospectus that the interests of the board may not be aligned with shareholders.

[@pukhrajsingh2729]

Because most of the world still needs oil whether they like it or not

[@pateldhrumin8478]

Pukhraj Singh But as this video described at the end that this need is going to decrease by 2030 (obviously bcs of electric car and global warming). I think next 10 year is very crucial for every industry not just the oil. We are at our peak of innovation and this is the decade where it’s all gonna fall apart again.

[@carholic-sz3qv]

He'll yeah and that's what people doesn't understand

[@dsgarden]

Even a man with his wife need to use oil...

[@jessicarobinson4563]

Shout out to Andrew Dulles and Jack Philby

[@dd-rw8ey]

Shouldn't you compare its annual income with gdp?

[@splats6164]

THE COMPANIES EMPLOYEES ARE MOSTLY ALL AMERICAN AND SAUDI. LIKE ME

[@ForYou-ip7kt]

15년 뒤에 꼭 입사한다 기다려라 아람코!!

[@sulemanhussain2013]

Tell me something I never heard of before.

[@Righteous1ist]

OIL

[@hafiztajuddin5229]

Congratulations to whose bought shares.

[@LiterallyGod]

OIL IS ALL THAT MATTERS

[@LiterallyGod]

B Babbich waiting

[@jonathondavidson3018]

goin back

[@je.m3320]

But hey Canada Oil still cant get out of market

[@muhammedarif9701]

Ok let's just say that the Saudi prince mbs is more relevant than all the British monarchy

[@lilacdoe7945]

👎🏼 for Bloomberg of all sources making a false comparison of market value to annual GDP. If this is the case, the value of Aramco needs to be divided by 9.26 (current PE ratio). Aramco's equivalent GDP is appx $216 billion, ranking 50th, between Peru and Greece.

[@CHMichael]

What? Tesla or east indian trading company. It helps to not have iran or Venezuela as a competitor.

[@FinancialShinanigan]

Because oil, they can price it and profit.

[@bishboshs]

Why do people always compare the valuations of companies to national GDP. One is a measure of output, the other is a forward looking projection of earnings. Just because they are of the same order of magnitude does not mean they should be compared.

[@moneymaker2024]

Saudi Aramco is prepping up the US$

[@abdulmalikmmic5176]

How?

[@jameswalsh9653]

Surely the value of the company relates to how much dinosaur juice is left in the ground? Something I doubt they will ever tell

[@rext8949]

Not just that. You have to consider all the increasing alternative fuel sources which are inundating the market as well as newer technologies which don't require oil.

[@availablehage]

They should have just named it armtech and watched it price hyperinflate.

[@monjanger]

GDP does not equal valuation. A better comparison would be revenue and GDP.

[@Tradinginthezen]

Trying to finesse bag holders

[@derekshaw3550]

And that's when California Standard Oil fucked up......and now gas prices are $4.00 per gallon at the pump.

[@user-xm2qh3wg2u]

ไม่มีข้อมูลข่าวสาร​

[@yellowghost4783]

Jafurah 😌 Remember this name ✌️ gas ⛽️ 😎

[@DigitalicaEG]

Elon needs to accelerate electric to take on this

[@moviesuggestions6660]

What you think electric come from

[@DigitalicaEG]

@@moviesuggestions6660 thunder

[@DigitalicaEG]

@@moviesuggestions6660 boogaloo

[@moviesuggestions6660]

😂

[@nsms1297]

How did American company sold its stake of the company to another government since the company is very profitable

[@sevenhenson3926]

The Saudi gov probably triggered some concessionary clause in their agreement with Chevron. This is deal between a country's asset and a private foreign company

[@user-fx2gh2it6k]

Rockefeller family are friend with the Saudi Arabian royals

[@nsms1297]

@Tom Nguyen just like iran since iran nationalised the company. Still it could not refine the oil they produce. With heavy international sanctions iran did not catch up to Saudi Arabia in terms of wealth

[@supa3ek]

Because they were stealing Saudi oil in the first place. This way they got money out of it without war !

[@hooverelondono9946]

Arranco killer = Tesla

[@maxinla2501]

0:58 I don’t understand this chart

[@ganglmichael6314]

I guess its the marketcap of all public listed companies combined

[@madhurjya6764]

The biggest bubble in the human history,mark my word.....

[@pateldhrumin8478]

madhurjya this company is running since 87 years. It’s not a 10 year old crypto currency which people doesn’t understand, they are gonna rule the world until the oil is there.

[@justinliu7357]

It's not really a bubble, it's a fraud. When you only IPO 1.5% on a stockmarket you control, you can say it's worth whatever you want.

[@thomaskimball992]

My grandpa went over to Saudi Arabia in their earlier years and he saw some pretty crazy stuff they were still using guillotines back then.

[@faisalalharbi6971]

I am sorry.. But your grandpa certainly added "some salt" to the story.. There were never any guillotines in the Arabian Peninsula. Do your search! :)

[@dsgarden]

still better than nooses in Iran thou

[@hamndv]

Did he tell you about the indigenous people genocides as well

[@mohahmed6423]

You guys know that the Caribbean, most of Asia and Africa still have cars that emit smoke right?.. Europe and America will stop using Gas and oil but as for the other parts of the world they will Use it, High quantity of it certainly for the Next 500 years.

[@Bobelponge123]

Moh Ahmed Asia and Africa have less cars

[@mohahmed6423]

@@Bobelponge123 Africa doesn't bigman

[@Bigjoe99]

USD2trillion where it owns 18% of a global commodity worth about US$100trillion is actually not that impressive.

[@doom2avatar]

I think this is the first time I’ve heard of a govt forcing a bubble when no one is enthusiastic

[@nevarran]

Oil and Blood you mean.

[@MrRss334]

The low and incremental demand for oil is going to drop not because we are going green, it's because we have hit peak oil production along time ago, and tell now we don't have any abundant energy source to replace it...

[@alanmay7929]

untill they disvocer another big oil source

[@MrRss334]

@@alanmay7929 they haven't been discovered any oil rigs in along time ago, and the rigs that they discovered recently can only cover the global week for about a year, read about oil peak production or peak prosperity to get more information about the subject...

[@user-xm2qh3wg2u]

วงการโทรทัศน์​เมืองไทย

[@nj1728]

they hate our crown prince that is all thank to MBS you are changing this great country , i am sitting on rich coach in my private palace driving my rolls ryce as any saudi , no no homeless it is just this great country every thing is cheap , oil , pepsi and you have great salary and business while the other struggle to find the life basics . thank you again to our great prince Looove you so much and the haters hate us more , buy i am going to have lunch in 7 stars restaurant

[@nj1728]

they hate our crown prince that is all thank to MBS you are changing this great country , i am sitting on rich coach in my private palace driving my rolls ryce as any saudi , no no homeless it is just this great country every thing is cheap , oil , pepsi and you have great salary and business while the other struggle to find the life basics . thank you again to our great prince Looove you so much and the haters hate us more , buy i am going to have lunch in 7 stars restaturant

[@felixf4378]

0:42, No it wouldn't. It has a 2 Trillion dollar evaluation, but it's annual revenue is 355B. That's nowhere near the top 10 global economies.

[@Marwan-tx5nb]

Its 'net profit' is by far greater than any other company in the world. Saudi's Oil is so cheap to pump out that it cost a fraction of the amount needed for production anywhere else. They are literally living on a sea of oil.

[@faisalalharbi6971]

Revenue is irrelevant.. Total profit is.. Aramco stands on the very top with no competitors when it comes to profit.

[@user-xm2qh3wg2u]

เป็นข่าวทั่วโลก​

[@nsms1297]

*Oil*

[@shsavior2505]

Don't invest where there is no transparency

[@keinname1192]

0:50 can someone explain why is germany so low?

[@jmpompey1]

This is stock market size, german banking laws are more strict than most other developed countries so most international companies list in the New York or London

[@dreamsdreams2946]

Oil Saudi Arabia 100/100 💯👌🏻

[@libertadomuertefreedomorde4069]

GLORIA infinita a los gloriosos Estados Unidos,la Libertad y el capitalismo en todo el mundo por siempre.

[@eurestheticsfitness725]

news flash captain obvious saudi aramco is technically = country

[@mindaza0]

reporter is dead brain to put Hong Kong city in top 4

[@user-xm2qh3wg2u]

หาโครงสร้างดิน

[@mahmoudragab3627]

A unicorn startup is worth 1 billion dollars not 1 Million as the vedio said

[@user-xm2qh3wg2u]

ดินไม่มีทางแล้ว

[@ggdn9720]

0:41 "2 trillions dollars is more than most countries annual GDP", please please stop this kind of stupid comparaison between stock and flow. I expect better from you

[@davidespada01]

i think it's paid ad 😎

[@pateldhrumin8478]

They’re just trying to explain how big it is !

[@jen_nice2059]

ggdn9720 no different than comparing billionaires net worth to country GDP.

[@ggdn9720]

@@jen_nice2059 exactly and just as stupid

[@erakor9]

1.5% of the company. Who cares. This reminds me of when ripple coin made the owner the richest man in the world. Just a marketing gimmick for Saudi Arabia.

[@MDF4072]

Ahhh, monopoly Game at Best 🤫

[@sevenhenson3926]

High chance of success becos it's not Malaysian

[@MK-fk4kp]

😂😂😂😂

[@Mr7appy]

👍⁦🇸🇦⁩

[@Alig-jx9mc]

OiL

[@arbernani4727]

Hope this words such as millenials and gen-z ends soon

[@nsms1297]

Ok boomer, I am tired of hearing this eventhough I am from gen Z

[@wilhelmheinzerling5341]

Oil is dead

[@richard392]

Where is this money coming from , whos putting my money in this lie , even cars within 10 years are all going to electric so why is it valued like this ? i swear my pension is being sent there by crooks.

[@emmanueloluga9770]

lmao, this comment sent me

[@beniciomoran6401]

The second-hand network joly drown because tire nearly number via a wary cherry. utopian, awesome drum

[@anthonyphung6704]

The concerned married cephalometrically sin because numeric typically place than a plastic tax. zealous, frantic bear

[@splats6164]

The US (where I'm from) and Saudi (where I live for thos company) we could give a shit about about kashoggi

[@miruu28]

Apparently the Saudi did care, otherwise they wouldn't have murdered him and burnt him to ashes.

[@splats6164]

@@miruu28 in that sense we care but we don't care that he was killed

[@russothuga2702]

The mountainous inventory concurrently rob because verdict neatly repair vice a tan draw. thundering, deranged flat

[@allhourpremiumfragrances4717]

The fallacious example unusually park because single systemically brush on a quack loss. awesome, voiceless gong

[@peachezprogramming]

If I were them I’d cash out. Oil is on the way out over the next 50 years

[@adeebibrahim6349]

That's stupid , there is no alternative that can compete with oil at the moment. Best thing to do would be to diversify their investments into other sectors.

[@TheZachary86]

I heard that argument in the 80s

[@Ragon_Reel]

Z the difference is that previous to LNG and fracking the skepticism was with regards to a potential finite nature of the resource. Now, with EV’s rapidly gaining market share the question is at what rate will this disrupt the petro dollar and ultimately the global oil demand.

[@TheZachary86]

R N R EV just shifts the oil and gas markets to power generation. There is no new breakthroughs with nuclear energy and renewables still won’t solve most of the problems. I predict the rise of coal power plants to meet electrical demand from EVs. This combined with a rise in gas power plants (they are the cleanest fossil fuel source) Unless there is a breakthrough in battery storage technology, oil and gas will continue to be the dominant industry player for energy supply.

[@jmpompey1]

​@@TheZachary86 Oil won't be used for power generation, gas is sufficient to meet the base load power demands of every major economy in the world in combination with renewables. The only issue with renewables is storage capacity, but given that electricity demand is falling in the developed world as processes become more efficient, the only major increase in demand will come from EV's which are storage devices. There doesn't need to be a breakthrough with renewable power production the costs are coming down as a fast enough rate already, what we need are power storage breakthroughs such as solid state batteries. If we can develop solid state batteries with the capacity of current lithium ion batteries then we could have 100% renewable power generation.

[@oneclick6551]

The well-off cyclone expectably unpack because january quantitatively haunt amongst a milky handsaw. abandoned, adventurous sneeze

[@Ismail-FIRE]

What i was gonna say👌

[@judithjackson1086]

The USA get mad at Iran for doing what Saudi did nationalizing their oil

[@laspeeders17]

fake news

[@pinwei2390]

bloomberg reports are so boring...

[@danii5630]

I hope they go down when earth becomes intelligent and stops giving Arabia billions of dollars...

[@abd4620]

A heart full of hate will only make the mind so blind.

[@Faraz70]

Aramco is going to become a penny stock

[@07qahtan]

Nah, Never. The world still needs oil and its derivatives for at least 50 years.

[@alanmay7929]

@صالح thank you mate i agree with you

[@humbleonemoretime7025]

We are worth 2 trillion but we are selling 1.5 % for 29 billion in short we are broke and don't want to give up alot for that money so let's exaggerate our worth ohh and you have to buy or dismemberment gangster

[@alanmay7929]

gtfo

[@humbleonemoretime7025]

Ok am out

[@archiey2k1]

MBS is the new islam's prophet