When Saudi Arabia’s oil giant announced plans last year to sell five percent of its shares in an initial public offering, a Saudi prince estimated the value of the company at $2 trillion.
Analysts now believe Aramco value is worth perhaps half, and maybe only one-fifth, of that amount, Bloomberg reports.
One reason for the huge hit: a growing consensus that oil demand may fall more quickly than previously expected.
The original valuation assumed Saudi reserves would be viable for at least seven more decades.
Even automakers like Toyota expect to be free of traditional engines by 2050. The Bank of England’s Mark Carney and other experts have warned investors to beware a “carbon bubble” that could upend the market.
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