Scott PollardAnne Womer
Margie Perez
Annotated Bibliography: Saudi Aramco
General Information
Middle East Oil and Gas. International Energy Agency, 1995.
This publication of the International Energy Agency provides good background reading on the oil-producing countries of the Middle East. It explains their importance in the world economy and their energy policies and development plans.
Saudi Aramco web site
Provides background information on the history of the company, its current projects, joint ventures, plans for the future, and speeches by its officials.
The Saudi Arabian Information Resource
Summary: Saudi Aramco is the world’s largest oil producing company. It was set up by the Royal Decree in 1988, to assume the duties from its predecessor, the Arabian American Oil Company. “Saudi Aramco’s mission, as an integrated international oil company, is to engage in all activities related to the oil industry on a commercial basis and for profit” Abdallah S. Jum’ah. The company can produce around 10 million barrels of crude oil a day. Based out of Dhahran, Saudi Aramco also owns five refineries at Ras Tanura, Riyadh, Jeddah, Rabigh, and Yanbu. Saudi Aramco employees over 57,000 people with 80% Saudi citizens, making it the sinl.e largest employer in Saudi Arabia other than the Government.
The Washington Times, September 22, 2000
An interview with: Abdallah S. Jum’ah, President and CEO Saudi Aramco
Summary: Saudi Aramco’s outlook for the future is promising. The company has inaugurated several major installations domestically, and has continued to discover and develop oil and gas resources for consumers for decades ahead. With the rebound of global oil prices around summer 2000, Saudi Aramco has been able to preserve its market while attracting new global customers due to reliability of supply, high level of performance, and commitment to providing service. The company is mainly focused on oil production, however as they see natural gas gaining 24% share of the energy mix by 2010 and likely replacing coal as the number two energy source, Saudi Aramco is committed to expanding this critical energy resource. CEO Abdallah S. Jum’ah sees modernization into the 21st century with cell phones and ATM’s as inevitable, but believes his country men will continue to hold onto their religious faith and sanctity of family life.
“Saudi Aramco Reserves Unchanged.” The Oil Daily. July 31, 2002.
New official data for the past year released by state Saudi Aramco show stable oil reserves, but a significant increase in gas reserves and gas production. Gas has taken primary importance in Saudi Arabia's domestic energy strategy. The company has seen a rise in the amount of exports to Asia and the US with a decline in the exports to Europe.
Aramco and International Politics
The Oil and Gas Journal
WPC: Saudi Arabia pledges readiness to stabilize oil prices in case of US-Iraq war
Summary: At the World Petroleum Congress in Rio de Janeiro on September the 3rd, Saudi Aramco committed to unilaterally make up the global supply of oil in the event of a US-led attack against Iraq disrupting its exports. “In case of an US attack upon Iraq, there would be no world oil shortage, since in a short time Saudi Aramco could make available an additional 3 million b/d of oil, aside from its present 7 million b/d output,” said Abdallah S. Jum’ah. In past disruptions of oil supply, Saudi Aramco has been able to intervene to stabilize prices. In 1979 during the Iranian Revolution, 1980 with the Iran- Iraq war, and the Persian Gulf crisis in 1990 Saudi Aramco has been able and willing to fill the gap of oil supply.
Quandt, William. Saudi Arabia’s Oil Policy. The Brookings Institution, 1982.
This paper is an overview of Saudi Arabia’s past oil policy. It focuses on the politics of the nation, but since Aramco is state-owned, these politics are relevant to our portrait of Aramco.
Varcoe, Chris. “We need West, too, Saudis pledge: Saudi a reliable supplier, head of state oil company assures petro conference.” Edmonton Journal. June 12, 2002.
Covers speech by Aramco CEO saying Saudi will not use oil as a weapon and stressing the fact that the world needs Middle Eastern oil. It shows how because Aramco is Saudi-owned, its policies echo those of the Saudi government.
Foreign Investment in Saudi Arabia and the Gas Initiative
Husain, Syed Rashid. “Saudi Aramco Exploring Ways to Increase Gas Output.” Saudi Gazette. August 25, 2002.
With oil production of Saudi Aramco currently standing at less than its overall capacity, basically due to OPEC output constraints, and also owing to the shortage in the supply of ethane and propane to the utility companies and the industrial units, the need for enhancing the output of natural gas to meet the exponentially increasing demand is becoming acute. By switching some of its infrastructure feedstock to gas, a large amount of crude could be made free for exports.
“Big growth ahead seen for Saudi gas utilization” by Abdullah M. Aitani
Center for Refining & Petrochemicals
Oil&Gas Journal July 29, 2002
Summary: Saudi Aramco is expanding its market of natural gas in the future to stay economically comfortable. “The national oil company, Saudi Arabian Oil Co. (Saudi Aramco), is working to increase the capacity of gas production to more than 8.8 bscfd by the end of 2003… The initiative is not to explore, produce, and only export product; rather, it is to explore, produce, and utilize gas resources within the kingdom.” Saudi Arabia is utilizing their natural gas supplies for use in the production of petrochemicals throughout the kingdom. Saudi Aramco is aiding the Gas Initiative, ‘where eight international oil companies will invest more than $25 billion over the next 5 years in natural gas exploration and production as well as in power generation, desalination, and chemical facilities.’
Allen, Robin. “Saudi talks with oil groups 'close to collapse.'” The Financial Times Limited. July 25, 2002.
“Energy - Saudi triumph renews Exxon oil hopes.” Lloyd’s List. June 6, 2001.
Dourian, Kate. “Saudi Arabia Sets up Oil Service Company.” Platt’s Oilgram News. June 6, 2002.
“Old flames rekindled.” The Economist. June 9, 2001.
Foreign companies would love a share in the Saudi oil business. These articles show how people are viewing the intended privatization of certain aspects of the Saudi oil industry and the proposed gas initiative with anticipation. Saudi Arabia, however, intends to keep its oil industry firmly under state control. For example, the gas initiative will allow foreign companies into the country. There is speculation that Exxon and others see this as an in to the oil reserves, but the Saudis say any oil discovered would belong to Saudi Arabia. Also, Aramco seems to view the gas initiative as a threat, which may help explain current difficulties in the negotiations.
Solares, J. Ricardo. “Technology application Optimizes Gas Well Completions in Saudi Arabia.” The Oil & Gas Journal, March 4,2002 v100i9 p45.
Saudi Aramco’s plans to expand on its gas production are accelerated as a number of new wells are drilled and a new technology implemented in the production. The company is planning a new approach in its drilling. Saudi Aramco formed a small team consisting of drilling and production engineers and a technical consultant from Landmark. The team was given the task of identifying weak links in existing and future wells and issuing specific recommendations to modify the completions.
Saudi and Russia
Morse, Edward L. and James Richard. “The Battle for Energy Dominance.” Foreign Affairs. March/April 2002.
Saudi’s spare reserves keep it on top, but Russia has emerged as a challenger. The main theme of the article is the conflict between the Russian oil industry and Saudi Arabia. The article also briefly compares Russia’s “dynamic and growing” oil industry to Saudi Arabia’s closed state monopoly which disallows foreign investment.
Aramco and the Asian Market
“New Saudi Trading Unit to Focus on Asia” Energy Intelligence Group Oil Daily . April 26, 2002.
“Saudi Aramco Takes The Plunge Into Spot Trading.” Petroleum Intelligence Weekly. May 2, 2002.
As Asia’s energy demand grows, Saudi Aramco is forming a trading unit to focus on Asia. This is an apparent departure from its usual policy of selling its products through term contracts. The Petroleum Intelligence Weekly article questions the importance of this move, wondering whether or not Aramco will actually engage in crude-oil trading.