Post on 27-Oct-2021
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Saudi Aramco: Non-Business Use
OIL DRIVES THE WORLDBUT – WHO DRIVES OIL?
Saudi Aramco: Non-Business Use
AGENDA
Energy
History
Value Chains
Global Market
Bangladesh
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Saudi Aramco: Non-Business Use
ABOUT THE SPEAKER
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Born and grew up in Dhaka
G-Lab, Dhaka College, DU – IBA
Netherlands Fellowship Program
Shell 2000-2013
UK, Singapore, Malaysia, Brunei, Western Europe, Russia, West and Southern Africa, UAE, Qatar, Saudi Arabia.
Gas and Oil Production, Refining, Chemicals, Chemicals, Renewables.
Saudi Arabia 2013 –
Large Integrated Projects
Saudi Aramco: Non-Business Use
JARGONS
Barrel – 42 Gallons or 159 Liters, originally used to store beverages
MMBtu - Amount of work needed to raise the temperature of one pound of water by one degree Fahrenheit (one four-inch match consumed completely).
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Saudi Aramco: Non-Business Use
WHAT IS PETROLEUM
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Saudi Aramco: Non-Business Use
WHAT IS PETROLEUM
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• Fossilized organic materials, such as zooplankton and algae.
• Vast quantities of these remains settled to sea or lake bottoms, mixing with sediments and
being buried under anoxic conditions.
• As further layers settled to the sea or lake bed, intense heat and pressure build up in the
lower regions.
• This process caused the organic matter to change, first into a waxy material known as
kerogen, and then with more heat into liquid and gaseous hydrocarbons via a process known
as catagenesis.
• Formation of petroleum occurs from hydrocarbon pyrolysis in a variety of mainly
endothermic reactions at high temperature and/or pressure
Saudi Aramco: Non-Business Use
HISTORY OF PETROLEUM
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600BC –AchaemenidEmperor Kir – II
400 BC Herodotus -Babylon
300 AD China Drills for Oil using Bamboo
900 AD Baghdad paves street with Tar
1000 AD al Razi distills kerosene
Saudi Aramco: Non-Business Use
EVOLUTION OF THE GIANTS
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Saudi Aramco: Non-Business Use
RECAP
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PetroleumIs Fossil Fuel Formed Millions of Year Ago.
Part of Human History
People have been using it for ages…
It’s a world of Giants
Saudi Aramco: Non-Business Use
VALUE CHAINS - STAKEHOLDERS
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Michael Porter, HBS
Suppliers New Entrants
Buyers Substitutes
IOCs and NOCs
Saudi Aramco: Non-Business Use
VALUE CHAIN - ARCHETYPE
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Saudi Aramco: Non-Business Use12
VALUE CHAIN – SECTORS
Saudi Aramco: Non-Business Use
SANGU AND EE-IV
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Saudi Aramco: Non-Business Use
RECAP
Complex Eco-system
A demand pull industry
As population grows, more energy
will be need
Transparent Market
Market forces influencial
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Saudi Aramco: Non-Business Use
BANGLADESH
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Source: BIDS, Mujeri, Chowdhury, Shahana 2013
Saudi Aramco: Non-Business Use
BANGLADESH – TRANSPORT SECTOR
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0
10
20
30
40
50
60
70
80
90
2009-10 2010-11 2011-2012
BD
T / ltr
Diesel
Diesl Cost Diesel Price Diesel Subsidy
-40
-20
0
20
40
60
80
100
2009-10 2010-11 2011-2012
BD
T / ltr
Octane
Octane Cost Octane Price Octane Subsidy
-20000
0
20000
40000
60000
80000
2009-10 2010-11 2011-2012
Cons
umption
MM
Litr
es
Subsidy
Diesel Consumption Octane Consumption Diesel Subsidy Octane Subsidy
Saudi Aramco: Non-Business Use
BANGLADESH – TRANSPORT SECTOR
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Saudi Aramco: Non-Business Use
GLOBAL MARKET – PRODUCTS PRICES
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Saudi Aramco: Non-Business Use
BANGLADESH – POWER DEMAND
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Saudi Aramco: Non-Business Use
BANGLADESH – POWER GENERATION
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0%
20%
40%
60%
80%
100%
120%
2015 2030
Fuel Mix
Natural Gas Furnace Oil Diesel Power Import Coal Hydro Nuclear
Saudi Aramco: Non-Business Use
BANGLADESH GAS
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Saudi Aramco: Non-Business Use
BANGLADESH GAS – COMPARISON
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Saudi Aramco: Non-Business Use
RECAP
Subsidy Burden
Far from global benchmark
Demand Growth
Necessary to support
industrialization
Changing Fuel Mix
The coal challenge
Role of Renewable
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Saudi Aramco: Non-Business Use
RHAZES
الاسرارسر
The Secret of Secrets
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Muhammad ibn Zakariyā Rāzī
Rey – Persia 854 – 932 AD
Saudi Aramco: Non-Business Use25
Ahmed Zaki Yamani, Saudi Oil Minister 1962-1986
"The Stone Age came to an end not
for a lack of stones and the oil age
will end, but not for a lack of oil."
Saudi Aramco: Non-Business Use
THANK YOU
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