Destination KSA - Your Guide to Saudi

Destination KSA - Your Guide to Saudi
Historic Saudi

The Discovery Of Oil In Saudi Arabia – The Story As You Have Never Known It Before

By Mohammed Mirza

Share

facebook linkedin telegram whatsapp

While the exact date for the discovery of oil in Saudi Arabia commenced is arguable, there is one thing for sure; without the stability that King Abdul Aziz provided to Arabia, the search for oil on such a scale would most likely have not begun. Saudi arabia oil history was bolstered by 3 important events […]"

The Discovery Of Oil In Saudi Arabia – The Story As You Have Never Known It Before

While the exact date for the discovery of oil in Saudi Arabia commenced is arguable, there is one thing for sure; without the stability that King Abdul Aziz provided to Arabia, the search for oil on such a scale would most likely have not begun.

Saudi arabia oil history was bolstered by 3 important events in world history; World War 1, the Great Depression and discovery of oil in other places in The Middle East. This led to another world-shaping event that being the discovery of oil in Saudi Arabia. Here is a timeline of the story of oil in The Kingdom.

Photo Credit: rodhandeland.com

1922

How was oil discovered in saudi arabia!

A mining engineer named Major Frank Holmes who hailed from New Zealand set up the Eastern and General Syndicate Ltd. He was convinced that there would be much oil to be found in the region and started seeking oil concessions through the syndicate.

Photo Credit: adst.org

1923

King Abdul Aziz signed a concession with Major Frank to allow him to search for oil in the Eastern part of the country. A Swiss geologist was brought in, who stated that the ordeal of searching for oil in Arabia would be “a pure gamble”. This caused many banks and oil companies to back away from investing in Arabian oil ventures.

Photo Credit: geology.wisc.edu

1925

King Abdul Aziz sent an American mining engineer, Karl Twitchell, to examine the potential of the discovery of oil in Saudi Arabia. Twitchell found a few encouraging signs of oil, but advised that King Abdul Aziz await the outcome of the oil drilling in Bahrain Well No.1 before inviting foreign bids for oil exploration.

Photo Credit: craglobalaff.org

1932

The Bahrain Petroleum Company struck oil in Bahrain and this brought in a renewed interest in the hunt for oil in Arabia.

Photo Credit: geoexpro.com

1933

SOCAL was granted the oil concession in the Eastern part of The Kingdom. Under the agreement, SOCAL had been given the exploration rights to some 930,000 square kilometers of land for 60 years.

Photo Credit: saudiaramco.com

1934

A team of geologists arrive in Jubail to identify potential spots for drilling.

Photo Credit: aramcoexpats.com

1936

Dammam Well numbers 1, 2, 3, 4, 5 and 6, all show promising signs of oil available in commercial quantities.

However, in the same year, they all failed to live up to the expectations. However, they soon start digging another well – Well Number 7.

1937

Well number 7 also disappointed, even after drilling to a depth of close to 1400 meters.

Photo Credit: saudiaramco.com

1938

Who discovered oil in saudi arabia

With disappointing results, SOCAL’s executives faced a dilemma on whether to pull the plug on the Arabian venture.

Well number 7 eventually started flowing at a rate of 1,585 barrels a day. Further testing confirmed a major oil discovery.

Photo Credit: saudiaramco.com

1939

Abdul Aziz turned the valve of the newly completed 69 kilometer pipeline from Dammam oil field till Ras Tanura Port and the first oil shipment was sent.

1944

Photo Credit: saudiaramco.com

The oil company’s name is changed to Aramco (Arabian American Oil Company).

11

1948

The Ghawar oil field, which is the largest conventional oil field in the world is discovered in the Eastern part of The Kingdom.

Photo Credit: saudiaramco.com

1950

Aramco agrees to split profits with the Saudi Government. The agreement increases the government’s revenues substantially.

Read more about: Top 10 Worldwide for Superior Digital Government!

14hgh

1951

The Safaniya Oil Field is discovered, which went on to become the world’s largest offshore field.

Photo Credit: saudiaramco.com

1973

The 1973 energy crisis occurs in the United States, when members of OAPEC proclaimed an oil embargo.

Photo Credit: indianexpress.com

1974

The oil embargo is lifted and the price of oil rose from $3 per barrel to $12 per barrel.

Read more about: Saudi Arabia’s Most Prolific CEOs

Photo Credit: plus.google.com

1980

The Saudi government acquired a 100% stake in Aramco.

Photo Credit: saudiaramco.com

1982

After more than 45 years of pumping oil, Dammam well number 7 is taken out of service.

Photo Credit: saudiaramco.com

1999

Dammam well number 7 is renamed to prosperity well.

Photo Credit: saudiaramco.com

2015

Saudi Arabia continues to be the world’s largest exporter of crude oil. No other country even comes close. And this is a story of the discovery of oil in Saudi Arabia.

 


Share

facebook linkedin telegram whatsapp

Keep Exploring

Saudi Arabia Secures Hosting the 2026 FEI World Championships in Al Ula

By Mohammed AlMahdaly

Ring of Fire: Tyson Fury vs. Oleksandr Usyk in a Historic Showdown

By Haneen.Sh

Explore Culture At Al-Suwaidi Park

By Haneen.Sh

Epicon: NEOM Unveils its Luxurious Coastal Destination

By Haneen.Sh

Experience Enchantment at Disney: The Castle, Riyadh Season 2023

By Haneen.Sh

Get Ready: Tickets for Saudi Games 2023 Available Now

By Haneen.Sh

Discover ROKA Riyadh’s New Family-Friendly Brunch Experience

By Haneen.Sh

All You Need To Know About Riyadh Season’s Wonder Garden

By Haneen.Sh

Riyadh Zoo 2023 is Back For its Second Edition

By Haneen.Sh

BLVD Forest: an Interactive Setting to Delve into Natural Wonders and Encounter Rare Wildlife

By Mohammed AlMahdaly

Invisibilia Experience: Contemplative Spaces and Interactive Challenges in Boulevard City

By Mohammed AlMahdaly

Luxury Retreat at Rosewood Jeddah

By Haneen.Sh

Discover Rituals Cosmetics’ Holiday Gift Guide

By Haneen.Sh

Misk Art Week 2023 Showcases Talent and Creativity

By Haneen.Sh

Assila: Where Luxury Meets Culture and ‘Drunch’ Delights

By Haneen.Sh

Ganache: A Family Experience Beyond Desserts

By S. Inas Inayath