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Unsteady progress of a potential MENA solar superpower

Unsteady progress of a potential MENA solar superpower

PV MAGAZINE dated August 17, 2019, proposed for The weekend read, this Unsteady progress of a potential MENA solar superpower article by Author
LeAnne Graves
is from pv magazine, July edition.

With a combination of scale, a growing population, outstanding irradiation, and available capital, solar PV should be a ‘no brainer’ for the Kingdom of Saudi Arabia. But early explorations of the technology have soured expectations, and progress has come in fits and starts.

Saudi Arabia’s Crown Prince and de facto ruler of the kingdom, Mohammed bin Salman. The ‘Vision 2030’ agenda launched in 2016 includes plans to have 9.5 GW of solar and wind power feeding electricity into the national grid by 2023.
Image: U.S. State Department

Saudi Arabia’s renewable energy sector over the years can be best described as a roller coaster. Just when momentum seemed to be building, the ride came to a halt. Then it began to move, but never really gave potential investors the confidence needed for serious acceleration. Progress started to take shape in 2016 and has continued, showing that this time is different.

Yet, to understand how the country got to where it is today, it’s important to know where Saudi Arabia has been, and that stems all the way back to 1977.

Memory lane

Much like the creation of the national oil company Saudi Aramco — formed between the United States and Saudi Arabia — solar power has been explored as part of a bilateral partnership between the two countries. Saudi Arabia’s National Center for Science and Technology (now known as the King Abdulaziz City for Science and Technology or KACST) and the United States Department of Energy (DOE) struck a deal four decades ago for the Saudi Solar Village Project. The five-year agreement included $50 million from both countries and was extended for three more years. What resulted was a 350 kW solar PV system located 50 kilometers from Riyadh, as well as an additional 350 kW solar hydrogen demonstration plant.

The system operated well for its time, but the technology was nowhere near where it is today, which resulted in panel degradation of 20%. Operating temperatures were much higher than originally specified, and the heat sink insufficient for cooling.

From there continued a list of projects, including solar-powered water desalination, solar hydrogen utilization, solar water heating, and other PV research projects.

In 1990, the Persian Gulf War erupted and once again, Saudi Arabia saw solar power come via the United States. Solar panels were used to power GPS satellites, but just like the problem seen in the solar village, modules again quickly deteriorated in the harsh desert conditions.

There is little doubt that these observations helped shape the kingdom’s solar PV sector — and industry in general — but it would still take many years before substantial movement could be seen.

Broken promises

In April 2010, the King Abdullah City for Atomic and Renewable Energy (K.A.CARE) was established to be the “driving force for making atomic and renewable energy an integral part of a national sustainable energy mix.”

K.A.CARE’s target was to have 41 GW of renewable energy by 2032, with 16 GW of solar PV. In 2011, a contract was signed to establish a polysilicon plant in Jubail, which would begin the production of solar cell materials. Polysilicon Technology, alongside Hyundai Engineering and KCC Engineering and Construction, announced that it would build a $380 million plant to produce 3,350 metric tons of solar-grade polysilicon, with future expansion plans. This was one of many announcements that failed to materialize, as developer Polysilicon Technology later went bankrupt, according to local sources.

K.A.CARE went a step further in February 2013, when it published a white paper that announced a new renewable energy target of 54 GW by 2032 (41 GW was to be solar). And in the first five years, it planned for 5.1 GW to be installed, with 23.9 GW by 2020. The white paper has since been removed from the organization’s website, and K.A.CARE’s renewable energy ambitions disappeared along with it, as it began to focus more on nuclear power.

The new crown prince

Volatility in oil prices began in 2014, and it forced the country to broadly rethink its economic policies.

As Saudi Arabia grappled with the new normal of low oil prices, then deputy crown prince, Mohammed bin Salman, released a new economic vision for the country. The National Transformation Plan, part of the wider Vision 2030 agenda, was launched in 2016. It included a target to have 9.5 GW of solar and wind power feeding electricity into the national grid by 2023. It was understandable that the plan was met with leeriness, considering previous attempts to jump-start a renewable energy market in the country, but this time was different. This was the first time that Saudi Arabia had a government mandate to incorporate renewable energy into its overall energy mix.

In 2017, the Renewable Energy Project Development Office (REPDO) was created, featuring members from K.A.CARE, Saudi Aramco, Saudi Electricity Company, and the Electricity and Cogeneration Regulatory Authority. The new unit fell under the energy ministry’s oversight, and immediately began accepting applications from companies that were looking to participate in the development of 700 MW of solar and wind capacity projects.

Local company ACWA Power came in with the winning bid for the first utility-scale solar PV plant, Sakaka, at $0.0234/kWh. “PV is a no-brainer in our part of the world [to supply] a significant source of load,” said ACWA chief executive officer Paddy Padmanathan.

Yet what was also significant was how REPDO announced the winning bids, which was done via live stream. This showed a level of transparency that isn’t seen anywhere else in the region’s renewable energy sector.

In November 2018, Saudi Arabia’s first utility-scale solar PV project began construction, with more than 1.18 million modules and 1,200 new jobs. The Sakaka solar power plant began a new era in the kingdom, heralding a “more to come” drive with at least seven projects to be tendered in this year alone. And people started to believe it. In fact, Padmanathan said that throughout the region, more companies are jumping into the market — and they’re looking at Saudi Arabia. He estimates that over the past five years, there has been growth of 20% of new market players trying to get into the Middle East’s solar sector.

“Within the next five years, there will be a real race to deploy as much PV as possible throughout the region,” Padmanathan added.

And Saudi Arabia is a market mover for any sector, given its size and population of almost 33 million. So much so that many companies separate Saudi Arabia from their regional reports so that its size doesn’t skew results. The potential for the kingdom’s solar industry, coupled with its goal of creating a manufacturing hub, is enough to once again entice investors.

“We’ve been pushing anyone we’ve worked with for many years saying, ‘If you want to work with us and want to capture meaningful volumes — industrialize inside the kingdom,’” said Padmanathan.

Earlier this year, a Saudi consortium made up of the National Industrial Clusters Development Program and petrochemical giant SABIC, signed a memorandum of understanding with Longi Group and OCI for the development of a fully integrated solar manufacturing facility in the country. And such decisions may create momentum for others to move, particularly considering a potentially more favorable policy framework.

Gus Schellekens, a partner at the clean energy division of the consultancy EY, said that Saudi Arabia today is very different than pre-Vision 2030.

“New businesses are being set up that are very different to the old world that delivered success for the past 40 years,” Schellekens explained. Yet Saudi Arabia is still finding its footing. The head of REPDO, Turki Al Shehri, recently left the organization to join France’s Engie as the chief executive of Saudi Arabia. There has so far been no announcement about a replacement and sources have said that the energy ministry is instead looking to create a more centralized system.

It’s never an easy road when introducing a new model or system on a large scale, especially if people continue to focus on previous mistakes. “In the long run, there remains huge potential for Saudi Arabia, but it’s important to acknowledge practical challenges, and build on a robust plan that is integrated with other initiatives,” Schellekens concluded.

List of solar energy projects executed by KACST
ProjectsLocationYearsApplications
350 kW PV systemSolar Village1981-87DC/AC electricity for remote village
350 kW PV hydrogen production plantSolar Village1987-93Demonstration plant for hydrogen production
Solar coolingSaudi Universities1981-87Development of solar cooling laboratory
1 kW solar hydrogen generatorSolar Village1983-93Hydrogen production, testing, measurement laboratory scale
2 kW solar hydrogen (50 kWh)KAU, Jeddah1986-91Testing electrode materials for solar hydrogen plant
3 kW PV test systemSolar Village1987-90Demonstration of climactic effects
4 kW PV systemSouth of Saudi Arabia1996DC/AC grid connected
6 kW PV systemSolar Village1996-97Grid connection
Water desalination with PV (0.6m3/hour)Sadous Village1994-96PV/RO interface
PV in agriculture (4 kWp)Muzahmia1996DC/AC grid connected
Long-term performance of PV (3 kW)Solar VillageSince 1990Performance evaluation
Fuel cell development (100 – 1000 W)Solar Village1993-95Hydrogen utilization
Internal combustion engine (ICE)Solar Village1993-95Hydrogen utilization
Solar radiation measurement12 stations1994-95Saudi Solar Atlas
Wind energy measurement5 stations1994-95Saudi Solar Atlas
Geothermal power assessmentVarious locations1995-96Establishment of accurate resource data
Solar dryersAl-Hassa, Latif1988-93Food dryers (dates / vegetables etc.)
Solar thermal dishes (2×50 kW)Solar Village1986-94Advanced solar Sterling Engine
Energy management in buildingsDammam1988-93Energy efficiency
Solar collector developmentSolar Village1993-97Domestic, industrial, 
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The Geopolitical Implications of Future Oil Demand

The Geopolitical Implications of Future Oil Demand

Chatham House Energy, Environment and Resources Department produced this research paper dated August 14, 2019, of Professor Paul Stevens, Distinguished Fellow, Energy, Environment and Resources. It is about The Geopolitical Implications of Future Oil Demand. The study’s Summary is reproduced below.

The Geopolitical Implications of Future Oil Demand

The global energy economy is undergoing a rapid transition from ‘hydrocarbon molecules to electrons’: in other words, from fossil fuels to renewables and low-carbon electricity. Leading energy industry players and analysts – the energy-forecasting ‘establishment’ – are seriously underestimating the speed and depth of this transition. This in part reflects the vested interests that dominate that establishment. By contrast, the financial sector – which has little or no vested interest in fossil fuels – understands what is going on and is taking the transition on board.

The history of past energy transitions – including the US’s shift from wood to coal in the late 19th and early 20th centuries, and the French adoption of nuclear power on a wide scale in the 1980s – provides useful context for analysis of this trend. Such transitions have been triggered by factors ranging from market upheaval to technological change, with the technological element typically reinforcing the transition.

A similar dynamic, involving triggers and reinforcing factors, is in evidence today. The current transition in the global energy system has been triggered, in the first instance, by concerns over climate change and recognition of the imperative of shifting to a lower-carbon economy. In some places, growing concerns over urban air quality have overtaken climate change as a driver of government policy in support of the transition. The reinforcing factors include the falling costs of renewables and the rapid market penetration of electric vehicles (EVs). To these factors can be added ongoing uncertainty over the possibility of another oil price shock; and rises in oil product prices that are independent of movements in crude oil prices – a phenomenon sometimes known as ‘OECD disease’.

If the transition to renewables and low-carbon electricity happens faster than the energy establishment anticipates, the implications for exporters of oil and for the geopolitics of oil will be very serious. For example, the failure of many oil-exporting countries to reduce their dependence on hydrocarbon revenues and diversify their economies will leave them extremely vulnerable to reduced oil and gas demand in their main markets. The countries of the Middle East and North Africa (MENA) region will be particularly exposed, with the possible consequences including an increase in the incidence of state failure in a region already suffering the fallout from having signally failed to address the causes of the Arab uprisings since 2011. Increased political and economic turbulence in the MENA region would also have the potential to create serious migration problems for Europe.

The geopolitics of oil over the past 120 years have played a central role in international relations. Indeed some would argue that geopolitical rivalry over access to, and control of, oil supplies has been the source of much of the conflict witnessed in the 20th century (Yergin, 1991). The rise of renewables implicit in the current energy transition could well change this status quo. Renewables are widely used and widely produced. Currently, their availability is constrained neither by the agendas of dominant fuel suppliers nor by the threat of physical disruption to the strategic transit routes along which traded resources are typically shipped. There are certainly supply constraints associated with some minerals required for renewable energy technologies, but these hardly compare with the conflicts around oil supply, and most such constraints, in any case, are easily managed. Thus, as this energy transition proceeds, oil geopolitics will begin to fade away as an issue of concern.

The paper (ISBN978 1 78413 325 2) DOWNLOAD PDF914 KB

Fracking Boom in US and Canada Largely to Blame

Fracking Boom in US and Canada Largely to Blame

Other countries such as Algeria, people have objected quite strongly at times, to anything to do with fracking out fossil fuel from the ground using water from its invaluable phreatic water. More recently, it is found as elaborated in Fracking Boom in US and Canada Largely to Blame for ‘Massive’ Rise of Global Methane Levels: Study, that it is no more a question of water use only, but as put mildly in Common Dreams, in this article below as a matter far more lethal for life on earth.

While the rise of methane in the Earth’s atmosphere over the past decade has been “globally significant,” quick action to end fracking would have a rapid, positive impact on the environment by Julia Conley, Staff writer.

A new study out of Cornell University suggests that fracking in the U.S. and Canada over the past decade is largely to blame for the rise of methane in the Earth’s atmosphere. (Photo: Jeff Wallace/flickr/cc)

New research by a scientist at Cornell University warns that the fracking boom in the U.S. and Canada over the past decade is largely to blame for a large rise in methane in the Earth’s atmosphere—and that reducing emissions of the extremely potent greenhouse gas is crucial to help stem the international climate crisis.

Professor Robert Howarth examined hydraulic fracturing, or fracking, over the past several decades, noting the fracking boom that has taken place since the first years of the 21st century. Between 2005 and 2015, fracking went from producing 31 billion cubic meters of shale gas per year to producing 435 billion cubic meters.

Nearly 90 per cent of that fracking took place in the U.S., while about 10 per cent was done in Canada.

The fracking method was first used by oil and gas companies in 1949, but Howarth concluded that fracking done in the past decade has particularly contributed to the amount of methane in the atmosphere. As Kashmira Gander wrote at Newsweek:

While methane released in the late 20th century was enriched with the carbon isotope 13C, Howarth highlights methane released in recent years features lower levels. That’s because the methane in shale gas has depleted levels of the isotope when compared with conventional natural gas or fossil fuels such as coal, he explained.

“The methane in shale gas is somewhat depleted in 13C relative to conventional natural gas,” Howarth wrote in the study, published Wednesday in the journal Biogeosciences. “Correcting earlier analyses for this difference, we conclude that shale-gas production in North America over the past decade may have contributed more than half of all of the increased emissions from fossil fuels globally and approximately one-third of the total increased emissions from all sources globally over the past decade.”

“The commercialization of shale gas and oil in the 21st century has dramatically increased global methane emissions,” he added.

Other scientists praised Howarth’s study on social media.

In addition to being the second-biggest contributor to the climate crisis after carbon dioxide, methane has been known to cause and exacerbate health issues for people who live in areas where large amounts of the gas is present in the environment.

Chest pains, bronchitis, emphysema, and asthma can all be caused or worsened by high levels of methane. The process of fracking has also been linked to pollution in drinking water.

The Trump administration has no plans to reduce the amount of fracking that is taking place in the U.S.—rather, President Donald Trump has moved to open up public lands to gas and oil companies looking to purchase leases for fracking.

Howarth urged fossil fuel companies—and the government agencies charged with regulating them—to reverse course, shift to a renewable energy economy, and “move as quickly as possible away from natural gas, reducing both carbon dioxide and methane emissions.”

Cutting emissions of methane promptly would have a positive impact on the atmosphere and could help to slow the climate crisis because the atmosphere reacts quickly to the addition and subtraction of the gas.    

“This recent increase in methane is massive. It’s globally significant. It’s contributed to some of the increase in global warming we’ve seen and shale gas is a major player,” Howarth said in a statement.

“If we can stop pouring methane into the atmosphere, it will dissipate,” he added. “It goes away pretty quickly, compared to carbon dioxide. It’s the low-hanging fruit to slow global warming.”

Eat green to save the environment, says IPCC

Eat green to save the environment, says IPCC

Eat green to save the environment, says IPCC – how to tell if that really means you by Morten Fibieger Byskov, University of Warwick is yet again another article on the same theme. That of how our food impacts the lives of the generations in the future.

Arthimedes / shutterstock

In its new special report on climate change and land, the IPCC calls for more effective and sustainable land management, and more sustainable food consumption. But who is the onus on to go vegetarian, or look after land better? You, me, the “global elite”? The world’s poorest people, or perhaps the many millions of newly-wealthy Chinese or Indians? Or maybe our governments?

The answer depends on how you interpret the report, which can be read in two ways. On one hand, it is a moral call for individual consumers and food suppliers to become more sustainable. On the other, it is a call for governments to promote sustainable food consumption and production choices.

This is not an either/or situation – the report should be read in both ways but with recommendations for different population groups. To wit, whether someone is individually responsible for taking on board the IPCC’s recommendations depends on the extent to which they are subject to one or more of three forms of inequality.

1. Not everyone can afford to eat veggie or local

First and foremost, massive global wealth inequality affects the extent to which individuals and communities are able (or, rather, should be expected) to implement the recommendations of the IPCC report. It’s a lot easier to go vegetarian when you have the money to eat what you like. In the Global South, many have not benefited from industrialisation, while remaining in even more need of implementing measures to counter climate risks. Even in the more affluent countries of the Global North, many people live in abject poverty and have to make tough choices as how to spend their limited resources.

This highlights the need to make sustainable food accessible and not just available. The authors of the IPCC report acknowledge as much, emphasising how rising costs may lead to undernourishment as people turn to cheaper replacements, such as fast food. This is why sustainable food must be promoted alongside poverty alleviation. In the Global South, green growth must be priority as long as it includes local stakeholders, who are often experts on sustainable land management.

2. Some people emit more than others

Carbon footprint is highly correlated with inequality. As a 2015-report by Oxfam showed, the top 10% of income-earners, mainly living in affluent countries, are responsible for almost half of global greenhouse gas emissions, while the bottom half are only responsible for 10%. Even within affluent countries, there is a big divide between rich and poor. In other words global warming is not driven equally by everyone, but rather is highly correlated with income.

The global rich are responsible for most of the world’s emissions. aapsky / shutterstock

Of course, this does not mean that we should encourage unsustainable living in less developed countries. Rather, we should recognise that the consumption and production patterns of the world’s worst-off are not necessarily unsustainable. Although the world’s high and upper-middle income countries are home to about half the population, they are responsible for 86% of emissions. In comparison, Africa is home to 16% of the world’s population, yet only emits 4% of the global total. Meanwhile the very poorest countries – 9% of the global population, or 700 million people – emit just 0.5%. (Tellingly, the average per capita emissions of North Americans is more than 17 times that of the average African.)

Consequently, it would be possible to add several billion people in low-income countries, where population growth is already the highest, without massively changing global emissions, while adding just one billion individuals in high-income countries would increase global emissions by one-third. As the income of less-affluent populations grows, however, it does become necessary to encourage more sustainable practices.

3. People are not equally vulnerable

But less-affluent people in the Global North aren’t entirely off the hook. While inequality of income and carbon footprint does mean they are absolved of some responsibility to act more sustainably, this group still benefits from better infrastructure and more equitable institutions which should shelter them from the worst impacts of climate change. Conversely, inhabitants of low and middle-income countries, especially those in fragile environments like rainforests, mountains or coastal regions, are particularly vulnerable.

So while taking action to mitigate climate change is necessary, we cannot lose sight of the fact that many communities require financial and institutional support to adapt to existing changes to their local environment as well as to build resilience to near-certain climate risks in the future. While most people in the Western world are still only beginning to see and feel the effects of climate change, they must continue to commit resources to those most vulnerable and worse-off communities, who are often invisible to them.

In sum, whether someone can be held individually responsible for taking on board the IPCC’s recommendations crucially depends on whether they are able to do so without risking their life, livelihood, or well-being. Because inequalities in income, emissions, and vulnerability to climate change are still widespread, the report must first and foremost be read as a call for governments to make sustainable consumption and production options accessible. Addressing climate change and food security must go hand in hand with addressing global and local socioeconomic inequalities.

Click here to subscribe to our climate action newsletter. Climate change is inevitable. Our response to it isn’t.

Morten Fibieger Byskov, Postdoctoral Researcher in International Politics, University of Warwick

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The Conversation

Keeping Global Warming to well below 2°C

Keeping Global Warming to well below 2°C

The word “climate” makes most of us look up to the sky – however, the IPCC’s new special report on climate change and land should make us all look under our feet. This is how Anna Krzywoszynska, Research Fellow and Associate Director of the Institute for Sustainable Food, University of Sheffield introduced her article published on The Conversation of last week before adding that ‘Land, the report shows, is intimately linked to the climate. Changes in land use result in changes to the climate and vice versa. In other words, what we do to our soils, we do to our climate – and ourselves.’ So, keeping Global Warming to well below 2°C is the hurdle that all humans need to get over in order to achieve the Paris Agreement requirements.

How? Here is Trade Arabia’s.

Keeping Global Warming to well below 2°C
Land is under pressure from humans and climate
change, but it is part of the solution, says IPCC

Land a critical resource to cut emissions: IPCC

Land is already under growing human pressure and climate change is adding to these pressures. At the same time, keeping global warming to well below 2C can be achieved only by reducing greenhouse gas emissions from all sectors including land and food, the Intergovernmental Panel on Climate Change (IPCC) said in its latest report.

“Governments challenged the IPCC to take the first ever comprehensive look at the whole land-climate system. We did this through many contributions from experts and governments worldwide. This is the first time in IPCC report history that a majority of authors – 53 per cent – are from developing countries,” said Hoesung Lee, chair of the IPCC.

This report shows that better land management can contribute to tackling climate change, but is not the only solution. Reducing greenhouse gas emissions from all sectors is essential if global warming is to be kept to well below 2C, if not 1.5C.

In 2015, governments backed the Paris Agreement goal of strengthening the global response to climate change by holding the increase in the global average temperature to well below 2C above pre-industrial levels and to pursue efforts to limit the increase to 1.5C.

Land must remain productive to maintain food security as the population increases and the negative impacts of climate change on vegetation increase. This means there are limits to the contribution of land to addressing climate change, for instance through the cultivation of energy crops and afforestation. It also takes time for trees and soils to store carbon effectively.

Bioenergy needs to be carefully managed to avoid risks to food security, biodiversity and land degradation. Desirable outcomes will depend on locally appropriate policies and governance systems.

Climate Change and Land finds that the world is best placed to tackle climate change when there is an overall focus on sustainability. “Land plays an important role in the climate system,” said Jim Skea, Co-Chair of IPCC Working Group III.

“Agriculture, forestry and other types of land use account for 23 per cent of human greenhouse gas emissions. At the same time natural land processes absorb carbon dioxide equivalent to almost a third of carbon dioxide emissions from fossil fuels and industry,” he said.

The report shows how managing land resources sustainably can help address climate change, said Hans-Otto Pörtner, co-chair of IPCC Working Group II.

“Land already in use could feed the world in a changing climate and provide biomass for renewable energy, but early, far-reaching action across several areas is required. Also for the conservation and restoration of ecosystems and biodiversity,” he added.

Desertification and land degradation

When land is degraded, it becomes less productive, restricting what can be grown and reducing the soil’s ability to absorb carbon. This exacerbates climate change, while climate change, in turn, exacerbates land degradation in many different ways.

“The choices we make about sustainable land management can help reduce and in some cases reverse these adverse impacts,” said Kiyoto Tanabe, co-chair of the Task Force on National Greenhouse Gas Inventories.

“In a future with more intensive rainfall the risk of soil erosion on croplands increases, and sustainable land management is a way to protect communities from the detrimental impacts of this soil erosion and landslides. However there are limits to what can be done, so in other cases degradation might be irreversible,” he said.

Roughly 500 million people live in areas that experience desertification. Drylands and areas that experience desertification are also more vulnerable to climate change and extreme events including drought, heatwaves, and dust storms, with an increasing global population providing further pressure.

The report sets out options to tackle land degradation and prevent or adapt to further climate change. It also examines potential impacts from different levels of global warming. “New knowledge shows an increase in risks from dryland water scarcity, fire damage, permafrost degradation and food system instability, even for global warming of around 1.5C,” said Valérie Masson-Delmotte, co-chair of IPCC Working Group I.

“Very high risks related to permafrost degradation and food system instability are identified at 2°C of global warming,” she said.

– TradeArabia News Service

Aramco Takes a Beating by S. Jack Heffernan

Aramco Takes a Beating by S. Jack Heffernan

Lots are happening as far as fossil fuels are concerned, whether in the MENA region or elsewhere. For instance, Aramco Takes a Beating by S. Jack Heffernan, PhD was published on LiveTradingNews of August 12, 2019.

It is yet another piece of information from the trading world ups and downs that seem to demonstrate the ephemeral character of all hydrocarbons related businesses. In effect, Aramco Takes a Beating, as an article clearly shows how traders apart from their daily routines visualise their emotional involvement.

Aramco Takes a Beating by S. Jack Heffernan

Saudi state-owned energy giant Aramco said Monday its first-half net income for 2019 had slipped to $46.9 billion, a first such disclosure for the secretive company ahead of its debut earnings call.

“The company’s net income was $46.9 billion for the first half (of) 2019, compared to $53.0 billion for the same period last year,” the company said in a statement.

The fall in income, owing to lower oil prices, comes amid renewed speculation the company was preparing for its much-delayed overseas stock listing.

“Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow,” Aramco CEO Amin Nasser was quoted as saying in the statement.

It is the first time the company has published half-year financial results and comes after Aramco opened its secretive accounts for the first time in April as it prepares to raise funds from investors.

It made no mention of the planned initial public offering in Monday’s statement.

Crown Prince Mohammed bin Salman has previously said the IPO — dubbed as potentially the world’s biggest stock sale — would take place in late 2020 or early 2021.

Saudi Arabia plans to sell up to five per cent of the world’s largest energy firm and hopes to raise up to $100 billion.

The planned IPO forms the cornerstone of a reform programme envisaged by Prince Mohammed to wean the Saudi economy off its reliance on oil.

Saudi Arabia has not announced where the listing will be held, but London, New York and Hong Kong have all vied for a slice of the much-touted IPO.

View all posts by S. Jack Heffernan, PhD

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S. Jack Heffernan Ph.D is CEO at HEFFX.

S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several startups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen startups in Mining, Shipping, Technology and Financial Services.1

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