Background about Saudi oil
The first three decades of the past twentieth century witnessed a number of attempts to explore the petroleum and mineral resources of what is known today as the Kingdom of Saudi Arabia. These efforts, which took place in today?s Jaizan Region and the Eastern Province, did not produce any results. Ion May 29, 1933, however, the government of Saudi Arabia granted a concession to Standard Oil of California (then SOCAL, and today?s Chevron), to explore for and produce oil in an area of 495,900 square miles in the eastern parts of the Kingdom. This concession evolved through the past 75 years to become the company we know today as the Saudi Arabian Oil Company , or Saudi Aramco; the world?s number one petroleum company.
After five years of meticulous and some what disappointing exploration work which took place near Jabal Dhahran over a geological structure named the Dammam Dome, oil was discovered in commercial quantities for the first time in 1938 in Dammam Well No. 7 in an a geological substrata known as the Arab Formation. Many years later, the Custodian of the Two Holy Mosques; King ?Abd Allah ibn ?Abd al-?Aziz befittingly re-named the well No. 7 ?Prosperity Well?
In May 1939, the first Saudi oil shipment to the international market was exported from the newly constructed Ras Tanura Port on the Arabian Gulf, in a Royal ceremony attended by HM the late King ?Abd al-?Aziz..
Today, the number of discoveries reached 110 fields; the majority of which are oil fields while some are oil and gas, gas only or condensates fields. Many of Saudi Arabia?s hydrocarbon resources fields are located in the Eastern Province, on-shore and off-shore. The rest are located south of the capital city Riyadh in the central parts of the Kingdom, and in the coastal plains and under the waters of the Red Sea in the western parts of the Kingdom.
The Kingdom ranks the world’s first in oil reserves, production and exports. Its proven oil reserves by the end of 2006 amounted to approximately259.9 billion barrels, constituting about 25% of the world’s total oil reserves. The Kingdom’s oil production averaged 8,9 million barrels per day (bpd) in 2006, or about 11% of world production, and the volume of its oil exports in the same year reached about 7 million barrels per day, or about 11% of world oil exports.
In addition to its proven reliability to meet any customer?s needs which is supported by its reserves and production and export capacity, Saudi Arabia?s oil comes in ifive different grades: Arabian heavy, Arabian Medium, Arabian light, Arabian Extra light and Arabian Super light. The crude oil and its products are exported via the ports of Ras Tanura and Ju?aymah on the Arabian Gulf and Yanbu’ on the Red Sea.
Background about Saudi gas
BUntil the late 1970?s, most of the associated gas produced with oil was flared. During that decade, however, the Saudi Government developed a plan to utilize this gas to provide fuel and feedstock to the Kingdom?s growing industries. Accordingly, Aramco was instructed to design, build and operate what we now know as the Master Gas System. At the time of its construction, the Master Gas System was the world?s largest project ever carried out by a single company. This vast network of gas collecting facilities and processing and fractionation plants became the backbone of the industrial development in Saudi Arabia and made Saudi Aramco the world?s largest exporter of Liquefied Petroleum Gas.
However, the past two decades witnessed significant growth in Saudi Arabia and as a result demand on gas grew in rates that are considered among the highest in the world.
The Saudi Petroleum industry, represented by Saudi Aramco, responded to this national need by launching a comprehensive and aggressive gas program that is based on increasing the capacity of the Master Gas System?s current facilities, expanding Saudi Aramco?s gas exploration program to find more non-associated gas, building new gas facilities mainly to handle the newly discovered non-associated gas and expanding the gas pipeline network and supplies to reach Riyadh and Yanbu?.
As a result of these efforts, the Kingdom?s reserves of non-associated gas increased during the past decade from about 45 trillion cubic feet in 1993 to about 95 trillion cubic feet in 2003, and bringing the total gas reserves of the Kingdom, in 2006, to about 248.5 trillion cubic feet, the fourth largest of the world. Moreover the natural gas production capacity of the Master Gas System increased from approximately 3 billion cubic feet per day to about 7.5 billion cubic feet per day, in the same period.
Mega gas projects that Saudi Aramco completed recently such as Hawiyyah and Haradh Gas Plants, made natural gas available across the Kingdom to meet growing demand in the industry and public utilities such as power generation and waterdesalination.
Saudi Aramco also contributed to the development of the Saudi gas through its involvement in the Government-launched National Gas Initiative which was culminated by signing four joint-venture agreements that included Shell, Total, Luke oil, SINOPEC, Repsol, Eni and of course Saudi Aramco.
Moreover, PetroRabigh; Saudi Aramco?s joint venture with Somitumu Chemical in Rabigh is considered a quality move in the Saudi petroleum industry because it makes use of Saudi Aramco?s distinguished capabilities and expertise and those of its partner; Somitumu Chemical, to expand the economic base of the Kingdom and offer a promising investment opportunities for the national economy and the private sector.
Saudi gas operations also produce natural gas liquids (NGL), part of which is used domestically for household consumption and as a petrochemical feed stock while the rest is exported to world markets. In 2006 the total volume of NGL Production is over 399 million barrels, of which more than 285 million barrels were exported to the international markets.
http://www.mopm.gov.sa/mopm/detail.do?content=history_oil_and_gas
