Saudi Aramco

1098 Words3 Pages

Saudi Aramco The largest world supplier oil company is Saudi Aramco. It is the most profitable company on the earth. Since it is the most powerful oil company, it has a great impact on the world economy. As a result, a strong international relationship was built with the Kingdom of Saudi Arabia. In addition, the strong developing of international relationship with other industrial countries resulted in massive contributions to the politics, economy, and many different aspects. In 1933, Saudi government bestowed oil concession to California Arabian Standard Oil Company (Chevron). The main factor for this grant was to explore the oil in the eastern region of the Kingdom of Saudi Arabia. After discovering a huge amount of oil, part of the grant was sold to other American oil companies in order to cooperate with each other to do more exploration and to deal with such a big job. In 1948, all these American companies were incorporated into Arabian American Oil Company (Aramco) shared 50% of its profits with Saudi government. Furthermore, the company’s shares had been acquiring by Saudi government to gain 100% of its ownership. In 1988, the name changed to Saudi Aramco. The Headquarter of Saudi Aramoc is located in Dhahran, a city in eastern region of Saudi Arabia. Saudi Aramco produces 10 million barrels of oil each day. The history of Saudi Aramco went through three major periods: exploring oil, interconnecting with the USA, and contributing to other many universal events. Exploring Oil: In 1923 the worst prediction in the history of oil, the Arab peninsula did not attract Great Britain to colonize this empty desert for the general manager of British Petroleum Company. Sir Arnold Wilson announced that the Arab Peninsula did not cont... ... middle of paper ... ...s the Arabs’ nightmare. In 1973, Saudi Arabia, Egypt, and Syria decided to fight against Israel to revenge Arabs’ defeat which was in 1967. The plan was that Egypt and Syria would battle by the military while Saudi Arabia would use oil as a weapon. The result was Saudi Arabia stopped supplying oil to the USA. It took a while to settle the conflicts down. Eventually, the relationship was rehabilitated. It was hard to believe that such a desert has the largest oil reserve on the earth. In addition, it was hard to imagine that such a company underwent many universal concerns and leaded essential tasks. Saudi Aramco was set up in the desert after discovering the oil in Saudi Arabia. Formed an oil company, the USA and Saudi Arabia initiated a new relationship which based on the interests of both countries. Therefore, Saudi Aramco has magnificent emergence in the world.

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