Saudi Aramco

In this book, Yergin takes the reader on journey through oil history, from the first 1859 well drilling by Colonel Edwin in Pennsylvania up to the invasion of Kuwait by Saddam Hussein in a wrathful grab for oil and wealth in August of 1990. Yergin explores the role of oil in warfare, describes the changing organization of the oil sector, and examines

     Chevron Texaco, or Texaco Shell, is the leading competitor to ExxonMobil. Texaco is in the same areas of business as Exxon. Their petroleum products and lubricants are sold in the same markets, stores, and in many cases opposite street corners from each other. The two companies are very similar, but Exxon’s recent petroleum deals in the Middle East and Africa have allowed its stock price to jump ahead for the time being (1). In the industry, the two companies mainly compete for the ability to negotiate for new production. The competition is not made at the pump or at the local auto store. It seems that it’s more important to control oil than it is to sell it quickly. Because oil has so much value and power in the world, the industry is made of semi-friendly companies. Surviving and making as much profit as possible, is more important than trying to put people out of business.

Rockefeller set up “pools” of multiple businesses that fixed prices and production quotas, and by 1879, had seized 90% of the oil refining capacity. He established the Standard Oil Trust in 1882 creating an umbrella company which controlled forty oil companies, and an arrangement of stockholders who held trust certificates. Through this absorption and cooperative management of rival companies, Rockefeller controlled the petroleum industry horizontally as well as vertically through control of costs and

    Due to the amount of money that people get paid for locating large amounts of oil, around the early 1920´s Texas A&M University was searching for a well.  Finding oil can also lower the cost for because you have a well yourself.  In May 28 1923, they struck a very good one and it started to gush.  This caused it to start a building boom and Texas A&M got 4.4 million dollars richer by 2008.

By the 1960’s, oil prospectors began to partner with one another developing into large oil

The 20th century is the foundation for the modern world's absolute dependence on oil. In 1900 William Knox D’arcy, a British entrepreneur, funded a decade long expedition to find oil in Iran. In 1901 D’arcy proctored a six-year concession with Iranian officials that would guarantee all oil to his company and allot 16% of the proceeds back to the Iranian Shah. It was not until 1908 did D’arcy’s expedition strike oil; an event that lead to the formation of Anglo-Persian Oil Company (APOC) now formally known as British Petroleum (BP). APOC was nationalized by the British during World War I and until the 1979 Islamic Revolution served as a spring of oil for the British

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

United States foreign policy with regards to Aramco, drew similar comparisons the dollar diplomacy methods used in Honduras and Nicaragua. By 1933, Saudi Arabia suffered heavily from the global depression. So, when the United States became interested in renting Saudi Land for oil exploitation, the King had no choice but to sign. Therefore, the United States used her vast quantities of capital as a leverage - much like the short-term loans issued in Honduras and Nicaragua - to assist the Saudi government during the Great Depression. However, the United States involvement in the development of Saudi oil counters George Washington’s declaration that the United States should avoid seeking favors (drilling rights for money) from the foreign nations. As the World begins to turn towards a second global conflict, the U.S. foreign policy once again uses the economic might to stabilize the rapidly destabilizing world.

1. Talisman Energy Inc. started as a small independent oil company which needed to grow and expand internationally since that North

country to review its foreign investment in oil producing nations, which were mainly Arab countries.

Over the last 125 years, ExxonMobil was a regional marketer of oil in the Unites States. Later it becomes one of the largest publicly traded petroleum and petrochemical enterprise in the world. An oil tanker which named

Exxon and Chevron are no doubt some of the leading incorporated oil companies on the globe. Exxon Corp. is the second largest oil firm after Royal Dutch Shell, it is respected for getting the biggest revenue return in 2008 which no company in the U.S. have ever reported before. According to Wilson (2009) Chevron has managed to show a lot of profitability in the market despite the decease in its oil production. It graded as one of firms which made a billion dollars profit within a week in the period of July to September 2008. Regardless of profitability trends set by the two oil firms in the U.S. market, they have been facing financial decline like the rest of the companies in other industries. The two firms are like two sailing ships which are taking longer time to sink. In the last few years, the production capacity of Chevron and Exxon has decreased and their listings on the stock market have become weak. The continuation of construction and drilling which requires billions of dollars in expense of oil production might make them experience a bigger financial crisis (Wilson, 2009).

In the “The Prize: The Epic Quest for Oil, Money, And Power,” Yergin undertakes the reader upon a thorough and enjoyable journey through oil history, from the first 1859 well drilling by Colonel Edwin in Pennsylvania during up to the invasion of Kuwait by Saddam Hussein in a wrathful grab for oil and wealth in 1990 August. Yergin explores the role of oil in warfare, depicts the ever-changing organization of the oil sector, and examines the prominent, as well as often flamboyant petroleum players. The book is a well-researched and well-written, and supplement to a history branch, which until very lately, had been regrettably neglected—history of business.

Saudi Arabia has an economy that is largely dependent on oil, with the government maintaining the biggest control over the country 's significant economic activities. Saudi Arabia owns about 16% of the global oil reserves and is the number one exporter of oil (Saudi Arabia, 2013). In addition, the Kingdom of Saudi Arabia was instrumental in the formation of the OPEC (Organization of the Petroleum Exporting Countries) group, which initially comprised Iraq, Venezuela, Iran, Kuwait and Venezuela (Energy indicators, 2004). Currently, the petroleum industry constitutes about 80% of the country 's budgetary incomes; about 40% of the country 's GDP and 87% of Saudi 's export earnings. Agriculture, in addition to petroleum products, has been a major contributor to the kingdom’s economy since 1970s (Saudi Arabia, 2013). The country has been able to produce enough agricultural products for their consumption as well as surplus for exportation to the GCC member countries.

The population distribution of the Arab world is much different than much of the industrialized world in that one third of the population is under 15 years of age and one fifth of the population is between the ages of 15 and 24(Kalliny & Benmamoun, 2014). This young, typically educated population, is geographically situated between Europe, Asia and Africa and has great potential for positive investment. While much of the Arab World has benefited historically the oil industry, not all countries sit atop large oil reserves and those that do, have seen profits dwindle with the decline in oil prices over the last few years. This paper will discuss the risks that multi-national companies face while doing business in this section of the world.