Saudi Aramco

• 1. The Seventh Well

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  In 1938, a drill bit struck oil at Dammam No. 7, marking the first commercial well in Saudi Arabia. This single event transformed the region's economic future and laid the foundation for what would become Saudi Aramco. Before this moment, American companies had been excluded from Mesopotamia by British and French agreements under the San Remo Petroleum Agreement of 1920. Standard Oil of California sought new sources abroad after World War I shortages. The company received a concession to explore Saudi Arabia but faced four years of fruitless drilling. Texas Company purchased half the stake in 1936, yet success remained elusive until that seventh attempt. The well produced over 80,000 barrels daily, giving investors confidence to continue operations. By January 1944, the firm changed its name from California-Arabian Standard Oil Co. to Arabian American Oil Co., commonly known as Aramco.

• 2. Sovereignty Restored

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  King Abdulaziz threatened nationalization in 1950, forcing Aramco to agree to share profits equally with the government. This decision mirrored similar actions taken by Venezuela against American oil firms just years earlier. The U.S. government granted tax breaks called the golden gimmick to offset losses. Headquarters moved from New York to Dhahran shortly after the agreement. In 1973, following the Yom Kippur War, Saudi Arabia acquired a one-quarter interest in Aramco assets. That share grew to sixty percent by 1974. Full control transferred when a royal decree created Saudi Arabian Oil Company in November 1988. Former partners retained management roles until then, but operational authority shifted entirely to the state. By 1989, 90, high-quality oil and gas were discovered south of Riyadh, signaling new capabilities under sovereign control.

• 3. Fields And Networks

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  The Ghawar Field stands as the world's largest onshore oil field, while Safaniya holds the title for the largest offshore field. These discoveries emerged between 1951 and 1957, confirming vast reserves beneath the Eastern Province. A billion standard cubic feet per day of non-associated gas came online by 1985 through the Khuff Formation limestone layer. Later finds in the Jawf sandstone formation increased Master Gas System capacity to 9.4 billion scfd. During the Persian Gulf War, production jumped from 5.4 million barrels daily in July 1990 to 8.5 million by December. The company recommissioned 146 wells including Harmaliyah, Khurais, and Ghawar after they had been mothballed during the 1980s collapse. Today, Aramco manages over one hundred fields across Saudi Arabia, producing 12.7 million barrels of oil equivalent each day in 2024.

• 4. Digital And Physical Attacks

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  On the 15th of August 2012, hackers deployed the Shamoon virus against thirty thousand workstations at Aramco computers. Cutting Sword of Justice claimed responsibility for wiping files and rendering networks unusable. Richard Clarke suggested this attack was Iran's retaliation for U.S. involvement in Stuxnet. Security researcher Chris Kubecka later detailed the sophistication of the breach during her Black Hat USA 2015 presentation. Five years later, on the 14th of September 2019, drones struck two facilities: Abqaiq processing plant and Khurais oil field. Houthi rebels took credit for cutting 5.7 million barrels per day from global supply. Officials discussed postponing the initial public offering due to losses exceeding half the kingdom's output. Another incident occurred in March 2021 when six bomb-laden drones targeted a refinery near Jeddah, starting fires but causing no injuries or structural damage according to official reports.

• 5. Market Debut

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  Saudi Aramco priced its shares at 32 Saudi riyals on the 4th of December 2019, generating subscriptions totaling $119 billion. The company raised $25.6 billion through its initial public offering, surpassing Alibaba Group's record set in 2014. Trading began on Tadawul on the 11th of December 2019, with shares rising ten percent to 35.2 riyals. Market capitalization reached approximately $1.88 trillion, making it the world's largest listed company. By November 2025, stock traded at 25.8 riyals, reflecting an $800 billion decline since 2022. Goldman Sachs, HSBC, Morgan Stanley, and other major banks organized investor calls prior to listing. A 600-page prospectus released on the 9th of November 2019, outlined details including retail lockups for individual investors. Despite fluctuations, the firm remains the most profitable entity in history with production costs of just $3.75 per barrel.

• 6. Emissions And Future

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  Since operations began, Saudi Aramco has emitted 59.26 billion tonnes of carbon dioxide equivalent, accounting for 4.38% of global anthropogenic emissions since 1965. Environmental groups warned that the IPO could hinder efforts to reduce greenhouse gases during negotiations with international banks. The government committed to achieving net zero carbon emissions by 2060 within national borders. In October 2023, a direct air capture pilot program launched alongside Siemens Energy, scheduled for completion in 2024. On the 9th of December 2024, agreements were signed with SLB and Linde to build a carbon storage project in Jubail. This phase aims to capture up to nine million metric tons annually by late 2027. Flaring accounts for less than one percent of total raw gas production as reported in mid-2019. Critics argue scope three emissions from product use remain unregulated despite these initiatives.