Capellan 1

Michael Capellan
Bus-207-001
Oct 15 2024

Global Business Project

Imagine how difficult human life would be without the innovation of trade. Global trade
is what sustains human life and makes it easier for humans to receive their everyday needs. One
company in particular taking control of this and exceeding it is Saudi Arabia’s own Saudi
Aramco. Saudi Aramco is a petroleum and natural gas company which is owned majority by the
state. Saudi Aramco are the world leading producers in oil. This is due to them having the second
largest crude oil reserves in the world, with over 270 million barrels of oil. Ultimately, Saudi
Aramco this leads to Saudi Aramco having a couple of suppliers.
Some of Saudi Aramco suppliers are Yanbu Aramco Sinopec Refining Company, a joint
venture between Saudi Aramco and Sinopec, as well another big supplier for Saudi Aramco is
Gulf Cooperation Council (GCC), which handles countries like The United Arab Emirates,
Bahrain, Kuwait, Oman, and Qatar. Although even with the help of suppliers which help with the
distribution, Saudi Aramco has very big competitors against them. Some of the big powerhouse
companies against them are Shell Pic, based out of the United Kingdom, Rosneft Oil Co based
out of Russia. Another huge competitor for Saudi Aramco is Chevron Corp, based out of the
United States. Companies like Exon and Bp are competitors in the fuel industry which are all top
10 gas companies in the world. All of this goes to show the level of competition against Saudi
Aramco.
With pumping of this oil on a daily basis, this attracts customers from all over the world.
According to OecWorld, a research company specializing in research of companies
performances, they state “ In 2022, Saudi Arabia’s Saudi Aramco exported $236B in Crude
Petroleum, making it the 1st largest exporter of Crude Petroleum in the world. In the same year,
Crude Petroleum was the 1st most exported product in Saudi Arabia. The main destinations of
Crude Petroleum exports from Saudi Arabia are: China ($56.1B), Japan ($34.3B), India
($32.7B), South Korea ($32.5B), and the United States ($16.6B).” All of this buying from the
countries led Saudi Aramco to massive profit. With exporting oil on a daily basis also comes
importing oil on a daily basis to sell. Also, according to OecWorld, they state “In 2022, Saudi
Arabia imported $650M in Crude Petroleum, becoming the 58th largest importer of Crude
Petroleum in the world. In the same year, Crude Petroleum was the 59th most imported product
in Saudi Arabia. Saudi Arabia imports Crude Petroleum primarily from: Nigeria ($650M) and
United Arab Emirates ($712).”
Saudi Aramco has a lot of economic forces playing a role in the company. These
economic forces can also be seen as economic growth, which Saudi Aramco plans to play a big
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role in doing. Saudi Aramco hopes and grows in trying to make resources more available for
people, companies, etc. As well, with helping the surrounding communities with learning on
hand skills, and creating self-sustaining enterprises. With economic forces, also comes
technological forces. This is something Saudi Aramco is trying to perfect. Saudi Aramco is
building and advancing their company with the help of advanced AI computing. This AI system
will help with the innovation of the company. Saudi Aramco also strives for sociocultural forces.
According to the official Saudi Aramco website, www.aramco.com, the company states “The
Company’s initiative to seed micro industries in the Kingdom is designed to empower people to
shape their own economic future by creating additional value from traditional crafts and natural
resources. Aramco’s community efforts extend beyond the borders of Saudi Arabia with
participation in community outreach and development efforts everywhere it operates. These
range from natural disaster relief and educational initiatives in China, habitat preservation
programs in Japan and Southeast Asia, to STEM and petrochemical industry education programs
in the U.S. and Europe. Aramco’s international citizenship efforts are governed by the
Company’s Citizenship Executive Committee.”
Last but not least, Saudi Aramco has a rich history of demographics. Saudi Aramco
founded in 1933 by Socal and the Saudi Arabian government began its first oil drilling in 1938.
Due to a dispute with the Saudi king at the time, Saudi Aramco was forced to share half of its
profits with the Saudi government. With all this rich history, Saudi Arabia has crowned
themselves the “King of Oil”. All of this led to The Saudi Aramco company finally going public
in the stock exchange on December 11, 2019. Quickly shares rose to over $32 dollars, letting
them ultimately have a company value of two trillion dollars. Saudi Aramco today is known for
being the most valuable company in the world. This success comes from Saudi Aramco being the
world’s most profitable company.
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Works Cited
OECWorld, https://oec.world/en/profile/bilateral-product/crude-petroleum/reporter/sau, Article
accessed on October, 15, 2024.
Armaco,
https://www.aramco.com/en/investors/environmental-social-and-governance/social-responsibility
, Article accessed on October 15, 2024