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Threats to Saudi Aramco are overstated

The threats to the world’s biggest and most important oil company are overstated

Soaring shale-oil production in North America is a threat to Saudi Arabia and the kingdom must quickly diversify its economy away from oil to avert the looming crisis. So thinks Alwaleed bin Talal, a billionaire investor and a very rich prince in a kingdom not short of them. “It is necessary to diversify sources of revenue, establish a clear vision for that and start implementing it immediately,” Alwaleed wrote in an open letter to oil minister Ali Naimi in July. Saudi Arabia would never be able to lift output capacity from 12.5 million (b/d) to 15m b/d, he continued, and the kingdom’s budget depends too heavily on oil revenue. It isn’t the first time Saudi Arabia – and its state oil compan

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