Saudi Aramco Essays

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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
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Therefore, the Arab Peninsula was not like other Arab countries which were colonized. Arab Peninsula which eventually became Kingdom of Saudi Arabia remained relinquished with no boundaries. After King Abdul Aziz who was supported by Great Britain united Arabs and defeated the hostiles in quarter of century of severe wars began to search for investments in order to reinforce his economy. He was urging British Petroleum to explore the oil in Saudi Arabia while the British Petroleum company was negotiating with him not for interest but for preventing other companies to enter this area. However, a former British official who had left his service and converted to Islam became a loyal adviser for King Abdul Aziz, John Philby, and so he did a great job bringing foreign companies to the Kingdom. In fact, he was the one who suggested opening a competition among the oil companies. Taking that suggestion, King Abdul Aziz signed a sixty years oil concession agreement with Chevron in 1933 covering the whole eastern region of Saudi Arabia. Faced with such difficulties exploring job, Chevron had to sell 50% of the concession to Texaco. Surprisingly, that area became the richest oil area, and it still is even today.
Interconnecting with the USA:
It was vital to nationalize Chevron and Texaco due to many factors. First, the two companies were concerned that the Nazi move might come through the Persian Gulf. Another factor was the
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