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Oil big players: Aramco February 13, 2009

Posted by mytruthaboutoil in Oil (general), Oil giants.
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When I joined the oil business, I discovered a brand new world of multinationals, some of which I already knew, and others that I totally discovered. I think this blog can also represent an opportunity to share my knowledge of these little known companies which are often literally ruling the oil business.
I’m sure all of you know such companies as Exxon, BP, Total or even Petrobras. But these public companies own only a few % of the world’oil. The really big players are somewhere else. Have you ever heard of Saudi Aramco for instance?
Let’s make it brief. Aramco is the biggest oil company in the world, with both the largest crude oil reserves and the biggest production.
Aramco is a public Saudi company, benefiting from the country’s huge oil reserves (more than 264 billion proved barrels), and is therefore very naturally, one of the key players of the oil business.
For those of you who have watched the news during these past weeks, Aramco is for instance the owner of the Syrius, this “very large crude carrier” (VLCC, an oil tanker able to transport up to 2 million barrels of crude), which had been captured by pirates in Somalia in December.
Aramco produces 8.5 million barrels a day (3.1 billion barrels a year) and benefit from estimated reserves of 259 billion of barrels.
Apart from oil production, Aramco owns and operates an extensive network of refining and distribution facilities, and is responsible for the gas processing and transportation installations that fuel Saudi Arabia.
Aramco was created in the 1930’s by American investors and was then nationalized in the 1980’s.
Aramco’s global importance is not only due to its production, but is to be seen on a geopolitical point of view. The company is indeed a key element of the United States-Saudi relationships and is the number one oil supplier to the United States.
Aramco is actually a sort of a state in the state in Saudi Arabia. The company has its own diplomatic, security, and intelligence departments in parallel to the official Saudi diplomacy.

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