How Oil Changed The History of Saudi Arabia?

oil production, Saudi Arabia oil reserves, Saudi Arabia oil reserves

The life in Saudi Arabia before oil was not good. The life was too simple and not interesting. There were no schools, workplaces, cars, etc. I think that it is quite simple to assume how the life was before the oil was found.Before the discovery of oil in Saudi Arabia in the year 1938, life was different.

Saudi Arabia was one of the poorest countries in the world at the time of its founding in 1932, reliant on pilgrimage revenues and limited agriculture. There were no cars, electricity, roads, infrastructure, hospitals, etc. Most of the Saudis were Bedouins and illiterate with low life expectancy and only basic raw food to eat and survive. Playing with falcons and hunting used to be pastimes before the discovery of oil.

However, after the discovery of oil in the year 1938, Saudi Arabia became prosperous economically and gained political leverage internationally. By the year 1976, Saudi Arabia had become the largest oil producer in the world. At that time, Saudi Arabia saw economic and social development progress at an extremely rapid rate, thus transforming the infrastructure and educational system of the country.

This Day In Geographic History When Oil Discovered in Saudi Arabia

On March 3, 1938, an American-owned oil well in Dhahran, Saudi Arabia, drilled into what would soon be denied
as the largest source of petroleum in the world. The discovery radically changed the physical, human, and political geography of Saudi Arabia, the Middle East, and the world.

Before the discovery (made by the company that would eventually become Chevron), Saudi Arabians were largely nomadic. The country’s economy was based on tourism revenue from observant Muslim pilgrimages to the holy city of Mecca. After the discovery, Saudis established strong infrastructure dotted with wells, pipelines, refineries,
and ports. Today, oil accounts for more than 92% of the Saudi budget.

Saudi Arabia is one of the largest producers and exporters of oil in the world. The lucrative petroleum trade fostered sophisticated diplomatic relations between Saudi Arabia and the West, as well as Japan, China, and Southeast Asia. Most industrialized nations depend on petroleum imports, and critics claim this allows Saudi Arabia to have an outsized role in some foreign policy decisions, especially those surrounding the Middle East.

The discovery of oil also changed the demographics of the kingdom. Today, millions of foreign workers—from the U.S., India, Pakistan, Ethiopia, and the Middle East—live and work in Saudi Arabia.

Who first discovered oil in Saudi Arabia in 1936?

Saudi Arabian oil was first discovered by the Americans in commercial quantities at Dammam oil well No. 7 in 1938 in what is now modern-day Dhahran.

How much oil in Saudi Arabia?

The proven oil reserves in Saudi Arabia are the largest in the world, estimated to be 268 billion barrels (43×10 m ) (Gbbl hereafter), including 2.5 Gbbl in the Saudi–Kuwaiti neutral zone. They are predominantly found in the Eastern Province. These reserves were the largest in the world until Venezuela announced they had increased their proven reserves to 297 Gbbl in January 2011. The Saudi reserves are about 2 1/2-5 of the world’s total conventional oil reserves, a large fraction of these reserves come from a small number of very large oil fields,
and past-production amounts to 40% of the stated reserves.

In 2000, the US Geological Survey estimated that remaining undiscovered oil reserves in Saudi Arabia had a
probability-weighted average of 90 Gbbl.

How long will Saudi Arabia oil reserves last?

Reserves. As of January 2007, Saudi Aramco’s proven reserves were estimated at 259.9 billion barrels (41.32×10 m ), comprising about 24% of the world total. They would last for 90 years at the current rate of production. 85% of Saudi oil fields found have not produced oil yet.

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