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The history of oil research paper
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History oil industry essay
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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.
After the Second World War, the world was more interesting in oil than ever before. The conflict itself made the countries of the world realize that oil was a serious factor in the quest for power. From this point in history, oil was considered the driving force behind a successful economy and therefore attaining power. Therefore the quest for oil heightened during and after World War II. In the effort to acquire more oil, many countries began to seek out additional locations to drill and this drove the United States to the Middle East. In late 1943 a man named DeGolyer who was a geologist went on a mission to Saudi Arabia to survey the possibility for oil. His mission there concluded that “the oil in this region is the greatest single prize in all history”. With such a conclusion it is not surprising that the United States began extremely concerned with the oil concessions there.
Exxon and Mobil were two big competitors in the oil industry. In the 20th century, Exxon and Mobil operated with relatively low-price, and in low-margin environments. The market in the United States and Europe have grown and matured, allowing them both to grow with great success. The competitiveness has tightened worldwide in the crude oil business. Both companies have continued to advance new technologies, introducing new marketing innovations. They have extend there reach into high-growth markets. The two companies became more efficient, reduced costs, and increased shareholder’s value by there merge.
Iraq and Kuwait were some of the biggest oil producing countries in percentage. The author claims that before the war they engaged into numerous arguments in regards to their oil business. At this time the author explains that Iraq requested for a reduction in the price of oil, but Kuwait didn’t want and this caused a lot of loss for Iraq. Iraq, as put by the then foreign minister Tariq Aziz, is said to have expressed his concern on the kind of losses that were occurring in the tune of billions on their oil business as prices per barrel dropped. All that Iraq wanted from the lowering of prices on crude oil was to help them clear their debt with Kuwait (Fitzgerald 7).
“One Arab nation from Gulf to the Ocean,” gives meaning to the term “Pan-Arabism” in the Middle East. A notion where Arab nations transcend their state boundaries to form political mergers with other states and achieve an ‘Arab unity.’ The existence of Arab states had been tumultuous throughout the decline of the Muslim order, the end of the Ottoman Empire, the Palestinian defeat, Six Day War and Arab-Israeli war in 1973. This essay will critically examine Foud Ajami’s case for a raison d’état in the Middle East and his claim that there were six broad trends leading to the alteration of the balance of power away from Pan-Arabism and towards the state. It will be argued that Pan-Arabism was a romantic ideology that Arab states found convenient to support, all in advancement of their nationalistic state agendas. It was never a realistic endeavor that was physically undertaken by the Arab states and was thus never alive in a tangible sense. However, Pan-Arabism as an ideology had a place in the Middle East and was thus alive in an ideological sense.
The first oil drilled there in Saudi Arabia was in 1938 by the engineer Tom Barger. Saudi became the large...
The Middle East has historically rebuked Western influence during their process of establishing independence. When Britain and France left the Middle East after World War II, the region saw an unprecedented opportunity to establish independent and self-sufficient states free from the Western influence they had felt for hundreds of years. In an attempt to promote nationalistic independence, the states of the region immediately formed the League of Arab States in 1945. The League recognized and promoted the autonomy of its members and collaborated in regional opposition against the West until 1948 when Israel declared independence. Israel represented then and now an intrusive Western presence in the Arab world. The ongoing Arab-Israeli conflict typifies this cultural antagonism. The Cold War refocused attention to the Middle East as a site of economic and strategic importance for both sides, yet the two hegemons of the Cold War now needed to recognize the sovereignty of the Middle Eastern states. With their statehood and power cemented, the Middle Easte...
The novel, “Cities of Salt,” by Abdelrahman Munif, is based on political fiction that is intertwined with the real issues that oil has brought to all the aspects of the Middle East. The book focuses on the changes brought by oil driven minds; it also illustrates the initial encounters, the confusion and the grief that Arab people faced during the beginning of the oil industry in a remote region. We learn about the interaction of Arabs and Americans in a small town, presumably found in Saudi Arabia.
The article, “Why Is There So Much Conflict in the Middle East?” written by Mirjam E. Sørli et. al corresponds a great deal with the text Politics and Change in the Middle East as far as the reasons for conflict in the Middle East. Sørli et. al disputes the idea of “Middle East exceptionalism,” which says that there is something different about Middle Easterners that make them prone to violence and conflict (142). Sørli et. al says this is not true, but rather there are very simple reasons as to why there has been conflict in the Middle East. As stated, the lack of regional natural resources such as water, oil, and arable la...
Kamrava, Mehran. "The Arab-Israeli Wars." The Modern Middle East: A Political History since the First World War. 2nd ed. Berkeley, CA: University of California, 2010. 109-39. Print.
The current world dependence on oil leaves much to be said about the impact of Saudi Arabia and the Middle East on foreign policy and international politics. Presently the world's largest consumer of oil, the U.S. depends on Saudi Arabia and much of the Middle East for the energy to run its businesses, its homes, and most importantly, its automobiles. In the past few months U.S. consumers have felt the pressures of increasing gasoline prices as they struggle to commute and live their daily lives. This leaves the U.S. with important decisions to be made on behalf of its citizens and its position in the international realm.
...Arabia is a petrostate. Oil dominates the national economy, international exports, and the nation’s politics. It has greatly shaped what the kingdom is today. Having started out as somewhat of a tourist economy, the kingdom has become a world, monetary power. From their massive amounts of oil and extremely cheap production, the country has been able to gain large amounts of affluence and political power. With its large abundance of oil, the country has been able to profit immensely on sales and spur diplomatic outcomes to their benefit due to the great need of the resource. Without the discovery oil, Saudi Arabia would be of little importance in the modern world, having the Grand Mosque be the extent of its importance. But because of its discovery of oil, Saudi Arabia became of international importance, coming to be one of the greatest assets to world superpowers.
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...
Initially and primarily the US’s influence in the Middle East was to prevent a hostile power from gaining control over a vital resource. With the outbreak of the 1973 Arab-Israeli conflict, the perception of oil as a strategic commodity surfaced. The Arab states cut off all petroleum deliveries to the United States and forming cutbacks to other countries. At the same time, the Organization of Petroleum-Exporting Countries (OPEC) announced a rapid increase in the pr...
As the Middle East approached the 1970’s, it experienced serious turmoil. The region was becoming ridden with disagreement and panic to obtain and protect oil resources. With this increasing demand and the supplies rapidly decreasing there was the impending doom of an “energy crisis”. President Nixon in an attempt to decrease pressure, abolished oil quotas in 1973. Meanwhile in the Middle East, the pressure was mounting to make an agreement and make the oil companies comply with the outcomes. In Egypt, the king proclaimed that war would be their only option. Later that year, Saudi Arabia decided to support Egypt with their “oil weapon”. The world realized during this time that most of the world’s oil was located in the Middle East. Egypt began its war and OPEC began trying to negotiate to bring cooperation between the countries. The October War brought U.S. support and supply to Israel in the midst of the disagreement. However this only heightened the animosity between nations and the Arab Gulf OPEC nations raised their oil prices to 70%.
Ranked among the FORTUNE Global 500® largest corporations in the world, Petroliam Nasional Berhad, most commonly known as PETRONAS, is a Malaysian state-owned oil and gas company which ventures into a wide range of petroleum activities. Established in the year 1974, PETRONAS was incorporated alongside the enforcement of the Petroleum Development Act 1974 (Malaysian Explorer, 2012). Today, being owned entirely by the Malaysian government under the Ministry of Finance, PETRONAS is entrusted with the responsibility to manage the entire nation’s hydrocarbon resources (Rig Zone, 2013) and to ensure the sustainability and orderliness of the country’s oil and gas industry is prolonged.