OIL AND GAS
According to Dr . Tamimi , the Motiva split will not only increase Aramco ’ s equity by nearly 13 % from 532,500 b / d to 600,000 b / d , it will also give the company complete control over which crude oil grades are processed at Port Arthur , but there is no doubt that Saudi crude will be prioritised at this refinery complex - which makes sense in any such vertical integration strategy .
Aramco is seeking to secure its market share in the US , which is one of the top three markets in addition to Japan and China . Furthermore , Cornell said that Aramco can optimise the refinery ( say for particular grades of crude ) and its crude dispatching operations to achieve efficiencies . However , he added , that doesn ’ t necessarily mean the refinery will only buy Saudi crude altogether - it retains the option to buy North American crude to take advantage of arbitrage opportunities . American suppliers may object , but the arrangement is not substantively different than other vertically integrated upstream and downstream operations .
Last but not least , most of oil industry experts agree , that this move is part of Aramco ’ s strategy of diversifying its investment portfolio
13