Saudi Aramco: World’s largest company, 100 crore profit every hour
Petroleum present under the earth is called ‘black gold’. It has changed the picture of many companies and even countries. Saudi Arabia’s state-owned oil company ‘Saudi Aramco’ has been a cash machine for the government for the last 85 years. It has the entire responsibility of oil mining in Saudi, which has 20% of the world’s oil reserves.
In the last decade, it has left behind companies like Google, Apple in profits. In the last financial year 2023, it made a profit of $ 121.3 billion i.e. about Rs 10 lakh crore, according to this, it made a profit of Rs 100 crore every hour. But now Aramco is gasping. Profits are decreasing. The world’s commitments to leave fossil fuels have raised questions on the company’s future. So let’s read the brand story focused on this company…
In the beginning: The seventh well, which started the oil era in Saudi Arabia
In 1933, Saudi’s first Sultan Al Saud contacted California’s Standard Oil Company and the oil seekers ‘wildcatters’ camped in the Arabian desert. In January 1936, the first well was dug in Dammam, Saudi Arabia. Then five wells were dug one after the other, but only a little oil was found. Drilling started till the depth. At the end of 1937, the seventh well was dug to a depth of 3300 meters. In March 1938, the company started packing up. But suddenly the seventh well started spewing oil. And in October 1938, it was announced that the era of oil in Arabia has begun.
• In 1980, the Saudi government took 100% stake in Arabian American Oil Company. In 1988, it was renamed Saudi Arabian Oil Company (Aramco)
News: Aramco produces 9% of global consumption
Saudi Arabia has about 20% of the earth’s oil reserves. Since 1989, it has remained at 260 billion barrels. However, experts have doubts on this figure. This company is producing 9% of global consumption i.e. 1 million barrels of oil per day. Aramco spends less than $ 10 on the production of every barrel of oil, currently the price of crude oil in the global market is $ 90 per barrel, in such a situation the company’s profit can be easily estimated. Whereas the rest of the competing companies have to spend a lot of money in drilling. Aramco also has control over the supply chain, this is another reason for its huge profits.
One lakh sensors are installed on Aramco’s oil wells, pipelines, plants terminals. Every drop of oil is monitored through these sensors.
Politics: Cash machine Aramco, 13 lakh crore profit in 2022
Aramco is the cash machine of the Saudi government. That’s why despite an 18% reduction in the company’s profits in the financial year 2023, it gave a dividend of Rs 8 lakh crore to the government. Aramco has been the most profitable company in the world in the last decade. The company earned Rs 19 lakh crore in 2023. From the financial year 2016 to 2023, Aramco made a profit of Rs 60 lakh crore. No other company in the world has been able to show this feat during this period. Apple, which is called a profit machine, also made a profit of Rs 46 lakh crore during this period. In 2022, it made a profit of Rs 13 lakh crore, which was the biggest profit made by any company in history till date.
In the year 2019, Aramco brought its IPO. Through this, the company raised more than Rs 21 lakh crore from the market
Strategy: Thousands of crores of rupees spent on funding to show that fuel is better
Aramco is making every effort to maintain the demand for fossil fuel. The company’s CEO Amin Nasser recently said that the world should stop imagining stopping the use of fossil fuel. According to the Crossref database, Aramco has financially supported 500 such research studies in the last five years, whose aim was to prove fossil fuel-powered vehicles right and doubt EVs. In the last decade, the company has helped American universities with Rs 20 thousand crores. The company has spent Rs 1100 crore on lobbying since 2016.
40% of Saudi’s GDP depends on Aramco’s oil
•Kangani can produce up to 1.2 crore barrels of oil per day.
82.16% of Saudi government’s Aramco Public Investment Fund is with retail investors. • More than 73 thousand people work in the company • The company has drilled 145 oil wells
This cultural center of Saudi Aramco ‘Ithra’ was listed in the World’s Greatest Place by Time Magazine in 2018