Saudi Aramco Oil Company

Saudi Aramco is Saudi Arabia's national oil company. Saudi Aramco is an integrated
energy and chemicals company. It is engaged in the exploration, production, refining,
distribution, shipping, and marketing of hydrocarbons, production of petrochemical
products, and production and export of crude oil and natural gas liquids (Craft, 2020).
From its first export of crude oil in 1939, Saudi Aramco says it now produces one out of
every eight barrels of oil in the world, or about 12% of global production. In 2018, the
company generated $111.1 billion in net income - far exceeding the second most
profitable company in 2018, Apple ($59 billion) ( Muspratt, 2019). Saudi Aramco is the
king of oil. It is the largest oil producer in the world, supplying more than 10% of the
world's oil and using its profits to provide funds for the Saudi country. The kingdom's
property has proven oil reserves of more than 260 billion barrels (second only to
Venezuela and second in the world); it also has about 300 trillion cubic feet of natural gas
reserves (fourth largest in the world) (Dun and Bradstreet, 2020).
They produce five different grades of crude oil. These are: Arabian Heavy, Arabian
Medium, Arabian Light, Arabian Ultralight and Arabian Ultralight. In this way, the future
needs of foreign refineries can be well understood and evaluated to optimize the structure
of crude oil production to always meet the needs of their customers (Oil Production,
2020).
Last year, nearly three-quarters of Aramco's crude oil exports (approximately 5.2 million
barrels per day) were delivered to customers in Asia. Asia believes that demand will grow
faster than the rest of the world. Its Asian buyers include China, India, South Korea, Japan
and Taiwan. Last year, it delivered more than 1 million barrels of crude oil a day to North
America. Exported to Europe, 864,000 barrels per day (Satff,2019).
The company is seeking international acquisitions in areas such as liquefied natural gas,
which is a refrigerated fuel that can be transported globally by ships such as oil. The
company goes up and down with the price of oil. In 2016, for example, a time of low
prices, the company reported just $ 13.3 billion in net revenue (Reed, 2019).
Saudi Aramco is aware of the key employment situation in today's industry, which has
been seen as a great challenge within the company in recent years. This situation has
deteriorated due to the recent increase in world demand for oil and petroleum products.
Rising crude oil prices complicate matters because even small independent companies
can sustain significant growth, leading to an increase in global labor demand (The way a
Head,2020).
In 2016, then-UK Deputy Crown Prince Mohammad bin Salman (Mohammad bin
Salman) announced that he intends to sell 5% of the funds of Saudi Aramco, Saudi
Arabia's state oil company, in an international initial public offering. (OPI). Finance
ambitious projects. Economic reforms in Saudi Arabia. He hopes to raise $ 100 billion
from the sale and value Aramco at $ 2 billion. As of December 11, 2019, the value of the
shares traded on the Saudi Arabian Tadawul Stock Exchange is only equal to 1.5% of the
value of Aramco. The IPO will actually raise nearly $ 26 billion for Saudi Arabia, while
Aramco is valued at $ 1.7 trillion. The events of the past four years tell an interesting
story that shows that the global oil market is changing and ambitious (Gross,2019).
Bibliography:
Craft. (2020). Obtained from Craft: https://craft.co/saudi-aramco
Dun and Bradstreet. (2020). Obtained from Dun and Bradstreet:
https://www.dnb.com/business-directory/company-
profiles.saudi_arabian_oil_company.7af82b1e19953d1d526f03d53a374e9f.html
Muspratt, A. (2019, 1 mayo). The Top 10 Oil & Gas Companies in the World: 2019. Oil
& Gas IQ. https://www.oilandgasiq.com/strategy-management-and-
information/articles/oil-and-gas-companies
Reed, S. (2019, 1 abril). Saudi Aramco Is World’s Most Profitable Company, Beating
Apple by Far. https://www.nytimes.com/#publisher.
https://www.nytimes.com/2019/04/01/business/saudi-aramco-profit.html
Saudi Aramco Faces Staffing Challenges. (2020). The way a head.
https://pubs.spe.org/en/twa/twa-article-detail/?art=872
Gross, S. (2019, 11 diciembre). The Saudi Aramco IPO breaks records, but falls short of
expectations. Brookings. https://www.brookings.edu/blog/order-from-
chaos/2019/12/11/the-saudi-aramco-ipo-breaks-records-but-falls-short-of-expectations/
Oil Production. (2020, 15 septiembre). Saudi Aramco.
https://www.aramco.com/en/creating-value/products/oil