Oil Production In Saudi Arabia Essay Example | Topics and Well Written Essays - 500 words

Oil Production In Saudi Arabia - Essay ExampleWith these statistics, it is undeniably true that Saudi Arabias contribution in the muscle industry positions herself as key player in the global economy. This paper accordingly discusses the petroleum production in Saudi Arabia through understanding its history and development over the years.Statistics derived from boldness of the petroleum countries (OPEC) in 2014 showed that Saudi Arabias value of merchandises from petroleum link up products to be around $ 321, 723 million, and its period crude oil reserves standing at 265,789 million put. In a whole ,oil related products, natural gas reserves constitute about 8317 billion cubic meters. Pushed by the demand for oil of about 1000 barrels per day , Saudi Arabia has increased its production capacity to be about 9637 barrels per day this is about 2507 barrels per calendar day refinery capacity. Last year, Saudi Arabias export earnings came from natural gas with 100030 million cubic meters exported globally (Bronson, 56).Before Saudi Arabia controlled its oil industry, the freshman king of Saudi Arabia Abd al Aziz Ibn Abd granted oil concession in 1923 to British investment groups who exploited, and apply the concession granted. It is after the discovery of first oil reserve in 1938 that the concession agreement was changed to Aramcos concession. It allowed an equal haring of profits between the company and the government on a fifty-fifty basis. With the discovery of fully grown quantities of oil reserves in 1945, the use of pipeline was in evitable. The trans-Arabian pipeline company came into existence have by Aramcos group. After completion of the Tapline pipeline in 1950, it did collect oils from fields, and it was able to handle 480, 000 barrels per day. Tapline continued to operate with a number of challenges coming from within and externally and in 1982 it was forced to tick its operations in Saudi Arabia (Branson, 45).After 1982 and