How Aramco Became the Biggest Company in the World | WSJ

The forces that propelled Aramco's growth from a single well to the biggest oil producer in the world are changing underfoot. Now that the company has sold shares, can it sustain the kind of growth needed to keep investors happy? WSJ explains. Photo: John Moore/AP
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#WSJ #Aramco #Explainer

[@mohammadhafeezlampa2910]

I'm a Filipino student and I literally pass this company every day going back and forth to school...

[@j.p.b.632]

Corny.

[@calvin_dabos]

3:21 * OPEC is Organization of the Petroleum Exporting Countries

[@brunovilela3619]

big mistake in this context since the whole point is about the relationship between state and company

[@SabeerAbdulla]

Well, someone noticed 😄

[@lu881]

A mistake on her side

[@pedrohakia1]

Wow and she is supposed to be an expert. Ouch!

[@SabeerAbdulla]

Rebel Yell she was talking about the oil companies who used to set the prices before OPEC came along ... Could be a genuine mixup given the context of what she was talking about.

[@gildardo]

Why didn't the reporter bring up the reason that Aramco's only offered it's IPO to Saudi Arabia investors. The reason is that they didn't wan't to open it's books to investors.

[@VintageToiletsRock]

cook books probably...

[@n7eet]

Well of course because they want Saudis to benefit first... And to boost their Tadawul stock market for future investment.... The 2030 plan is to diversify investments not just create cash flow....

[@silver350z94]

If they were to get listed in the us they would need to be very transparent with their books.

[@desertfalcon2786]

Are you stupid ? Their books ARE open and you can find it online along with the prospectus.

[@edgecase1047]

@@desertfalcon2786 Anyone can open books, keep it online. But who audit it? who validated the facts? Even Enron had books and submitted quarterly reports, but they had another set of books for themselves. If Aramco is list outside Saudi then there will be more scrutiny.

[@Biersoful]

that was pretty interesting actually

[@Commbo]

Imagine that if someone finds gold under your backyard and each of your neighbours start saying that they need a part of it to buy groceries.

[@VinceroAlpha]

This piece is is eye opening, it shows just how much the Wall Street Journal omits in its essays.

[@chillxxx241]

What did they omit?

[@VinceroAlpha]

@@chillxxx241 No, I’m not doing your homework for you. The information that they have left out is so significant in numerous that you can easily research.

[@chillxxx241]

@@VinceroAlpha sure

[@VinceroAlpha]

@@chillxxx241 Yeah buddy you need to quit being lazy seriously five seconds of a Google research will tell you all that they have just so happen to not include

[@user-eo4zt5lw8d]

its crazy to think all this started while WW2 was going on

[@snoopdogksa904]

Plans and ships did not run on American values they run on Saudi oil

[@n7eet]

Saudi Arabia was part of the allies and helped cut energy to the axis...

[@ahrlj24]

WW2 = European War. There were no WW2 in North America, South America, Oceania, Sub Saharan Africa, or Southern Arabia.

[@ayizeb9299]

@@ahrlj24 Might want to read your history books again.

[@ayizeb9299]

@Abstractism Right, but that doesn't change the fact that those countries were included in the world war. To say there was no war there is extremely disrespectful to the people that fought and died there.

[@Hwella555]

I love you guys!! Great production, with great content!

[@SportZFan4L1fe]

No mention of the Petrodollar deal in early 1970's.

[@bobbypham5706]

ISJST oh yeah! That’s true

[@pa93562]

why would the US sell all it's stake in Aramco if they knew what kind of demand thier oil had. Theres ur answer.

[@belovedstrummer6140]

How does this play a role here? I don’t understand.

[@belovedstrummer6140]

@@pa93562 what do you mean? I don’t get. USA sold their stakes to give their to Saudi military?

[@lu881]

The company doesn't need to last, it just needs to last long enough for the Saudis to diversify their economy. It's a sort of last push to finally end its dependency on oil and find new products to make money from.

[@lesschorlemer5151]

In 30 years, only about 5% of the world's automobiles will be fossil fuel driven. They better hurry up because the electrification of automobiles is coming fast.

[@luddity]

They've got massive capacity for solar power production. They need to invest more in desalination too, and develop their agriculture, manufacturing, and tourism industries more. This will require modernizing some of their laws affecting women.

[@Doai55]

@@luddity everything you said is happening right now

[@jericsonsalvacion2925]

in time ordinary citizens back to dessert with camels only the royal family will live in beautiful life thats the result of rich country control by monarchy saudi need to abolish its monarchy for the equality

[@microcosmonauta]

OMG, did she say OPEC is the Org. of Petroleum Exporting COMPANIES? I thought she was an expert on the subject.

[@thisisntsergio1352]

ಠ,_｣ಠ

[@CoolMan-ig1ol]

She just reads what is written by some journalists. She might have misread...

[@rashedalhadba3433]

Great presentation I love Saudi Aramco

[@komiczar]

Superbly done and researched. Thanx

[@michaborski7383]

Very informative !

[@ferdrewflores3612]

Informactive ! ✊💢💯

[@ferdrewflores3612]

Informative ! 👏🏼✊💢💯

[@Ls-bt7op]

where do you get your information?

[@splats6164]

Aramco has many joint ventries that operate a refinery such as a sinopec, mobile, shell, chevron and total voice ventures all through out the country

[@meshh9947]

I am proud to be one of the Aramco employees

[@splats6164]

🔥🇺🇲🇸🇦🔥 me too

[@thatone1280]

Saudi Aramco and saudi Arabia in general is the pinnacle of good oil management.

[@thatone1280]

@jo ti Well that's a pretty Ignorant statement which shows the lack of understanding you have about it.

[@TheOutlawGames]

jo ti not really we make around 60 billion $ from the two holy mosques where millions of muslims visiting them every year (:

[@amncf489]

Fascinating 😃

[@raxief83]

and now they're here in my hometown, Pengerang

[@arnejanett3273]

Why did the USA sell their stake in Aramco? Can someone please explain in detail?

[@InfoSopher]

Basically, back then a lot of countries decided to nationalize their oil assets. See for example Iran and BP. Compared to that context, the selling was reasonable for the involved American companies. (The "USA" as a country didn't hold assets in Aramco.) Source: The book Saudi Inc. by the author interviewed in the video.

[@zulji9450]

Well, if the Saudi didnt give the company license to pumping oil on their land.. The company would be useless

[@zunair744]

The Saudis were going to stop the company from drilling so it was go bankrupt or sell.

[@muhammadswalih8923]

Because it is Saudi Oil and Saudis wanted that money to make their land more prosperous than the corporate giants in America. If the Aramco had refused to sell they would simply cut the license.

[@brienfoaboutanything9037]

Wikipedia about Saudi Aramco: kzbin.info/www/bejne/omTEdJmmj9KLq9E

[@lashachakhunashvili1399]

3:21 OPEC actually means ''The Organization of the Petroleum Exporting Countries''. 6:13 This isn't Russia's actual map (unless WSJ is ok with the Crimean annexation).

[@thisisntsergio1352]

Nice job

[@altrshakib9449]

Well technically Crimea is part of Russia now. It's been going on for years! A country attacks another and takes land! That's how it worked in europe,America and the rest of the world!

[@lashachakhunashvili1399]

@@altrshakib9449 ''how it worked''

[@altrshakib9449]

@@lashachakhunashvili1399 Ofc Palestine is a part of Israel.Israel wants it to be so and Israel's puppet Aka the greatest nation ever USA thus also want Palestine to be Israel's,so whose there to stop? IT ISNT GONNA DO MUCH, by pointing now the ethnic,language,religion etc difference between 2 places.As long as one place (Israel or Russia) has military occupation over another place (Palestine or Crimea) and the world isnt stepping in within time to save the occupied place,then that place is official part of the Conqueror nation. It doesnt matter which is morally right, which is a crime, the thing that matter is, The Conqueror owns the land it conquered as long as the land is not retaken from it.

[@altrshakib9449]

@@lashachakhunashvili1399 btw I Have understood that without liking some ones comment, even if u reply to them KZbin wont send a single notif. Thus I liked ur reply,so u get a notif. I am interested to your reply

[@z3ammah416]

Very proud to be one of the Aramco employees. Aramco is like a big monster being on the top compared with other companies

[@WaadMaray]

Excuse mm,Im looking for books (1930 to 1970) for my acadmic study ph.d. Please..can we talk?

[@muhammadekkymunadi9534]

can i being a part of Aramco? i really would like to join you guys.. my country Indonesia would be very proud of that

[@muhammadekkymunadi9534]

can i being a part of Aramco? i really would like to join you guys.. my country Indonesia would be very proud of that

[@K4R3N]

8:48 LaSalle street Chicago, I can see my office!

[@NotKimiRaikkonen]

I work four blocks north at Dearborn/Adams

[@diegomarcio8069]

Is that for pump aramco shares price? Cz it has being dumped since IPO.

[@slovokia]

What is the political risk of investing in Aramco compared to investing in a Russian company? Both countries are run by autocrats with few if any limits on their power. In one stroke of a pen they could effectively confiscate the economic value of your investment. What protections do you have as an investor? The P/E it trades at should be low enough to discount these risks.

[@xcofcd]

You don't invest tons of money in Russia unless you have a good connection to the man. And if you have that your money is safe.

[@Ren-ck3cl]

Arabic executives practically compose the house of saud, nothing will happen of that nature.

[@brookeking8559]

slovokia, You’re right about similarities, but what can happen is different from what people expect based on past behavior. For example, the Kingdom didn’t nationalize Aramco but bought it. On the other hand, Russia has rarely been hospitable to owners without political connections. I’m not enamored of the Saudi regime, but history has shown it to be business friendly.

[@aidenw207]

Middle East 1973: We will weaponize Oil USA 1973: We will weaponize Islam

[@morceen]

Backfires as a BBQ party in 2001.

[@THOMAS_KARLPARKER_ROCKEFELLER]

On point johnathan William Bill rockefeller

[@Atomic-uy3ml]

Next Artificial intelligence please WSJ.

[@nsms1297]

How did US company agree to sell stakes to Saudi Government since the company is very profitable. What was US government doing about this during that time ?

[@johnsnow3901]

US gov can't interfere in private companies deals.

[@salmiakki5638]

I suppose the saudi government had significant leverage by being the law and policy maker and being the one to issue the permit of operations for every extraction of oil

[@andrenewcomb3708]

Getting Arabs to kill Arabs. That's what the US government is doing. The '72' - '73' growth was direct result of the military industrial complex exerting 'affection' by demonstrating restrained technological killing capacity through arming a very small racist regime (Israel) to superiority. Everything else is smoke & mirrors while production doubled feeding the little women of the Americas. Want truth? It'll mean you have to pull your fair share. I'm certain that's not in your portfolio.

[@sharpcone]

Most likely for funding wars.

[@thedarkside3178]

It's just a trick ! While still Today most of that Saudi money are invested in USA owned banks

[@pinkypasawiran8225]

Yes

[@Asyraftsm]

Huh instresting 🤔

[@adrianaadnan7704]

This is huge.this is a revolution. A revolution that would even take mbs by surprise.

[@ahmeryaa865]

He’s known about it for years,why do you think he’s our crown and not someone else? He’s the one that started the 2030 initiative that’ll hopefully save us.

[@Randall2023]

Love ❤️ Saudi Arabia 🇸🇦

[@ixi.1768]

The part the Saudi's were least interested in the oil embargo is wrong. 4:36 Can you give the source of this.

[@jeffreyrichardson]

Fossil fuels are a highly lucrative business. Refining the crude oil is also expensive.

[@Faraz70]

Their days are numbered

[@mohammedaa6383]

ARAMCO GO 2🎉❤

[@K4R3N]

If you like this you should check out "The Prize" documentary

[@wardox3638]

The book is amazing, but the documentary still is a better start.

[@K4R3N]

@@wardox3638 I bought 2 copies of the book! Agree but most people won't read 400+ pages.

[@candydateindia]

One of the first viewer!

[@MDF4072]

Oil makes the world go round. not money

[@cdnairn3367]

CFLOSON1 " SAYS " HELLO, HELLO " DODGE " VIPER !?! ...

[@reefmohammad5374]

In the past they say without oil you have nothing, same person today say "beg for oil more" 🤣🤣🤣🤣

[@amanuelt2088]

Tesla must be the boogie man for Saudi Arabia

[@leemacdonald6533]

And hydrogen is the boogie man for Tesla

[@user-ls1fz4gi6s]

Btw Saudi government own 5% of Tesla

[@sharpcone]

Aren’t Saudi investing in Tesla?

[@mrmeseeks8790]

How d ya think most of electricity is generated?

[@prickowens9341]

DreadPirateRobert _ out of thin air if you ask these dumbfucks

[@azmiraffimuhtado3217]

Im curious about the future aramco , with new lithium battery era . What the strategy for occupying the international market like in 80s for oil .

[@alanmay7929]

those big giant companies are also investing on greener alternatives, you think they would just keep pumping oil and selling it to everyone?!?! seriously grow up mate

[@splats6164]

Ayee im am American working for the company. Its wonderful. They set up an enclosed compound full of foreign western and Saudi workers

[@ahmeryaa865]

I remember seeing the houses while on the way to the swimming pool. Good times.

[@splats6164]

@@ahmeryaa865 did u live in saudi? Are you American?

[@ahmeryaa865]

SPLATS nah I’m Saudi Arabian,my dad used to work for aramco years ago. They were good times not gonna lie

[@harishs8567]

LIC: Hold my beer

[@MrWAEL888]

Correction, The first Saudi CEO is Abdullah Jumaah.

[@esfbrowncommunitybuyup1877]

New areas for oil like where?

[@tayseerjbeilimanagement626]

I was employee aramco

[@rafaelrosas6822]

sooooo Dei basically have to open and close the tap and wait nice model!

[@DBZFan2]

2:04 4:37 5:27 7:08 7:51

[@abhishekdev258]

Aramco has big parternships in India too. Infact India has world's biggest oil refinery.

[@albertviolado5596]

So far saudia is the number one supplier entire world of gas and petroleum? But mybe in near of future Philippines raised

[@vnrbhat]

How? Oil

[@nomadictribe7396]

Did he mention fraking😞

[@malamin8852]

Black gold

[@firojmnalam6121]

अर्थशास्त्र 🙏🙏🙏🙏🙏

[@earthling_parth]

#GORENEWABLES

[@amersiraz7455]

Parth Patel jealous much?

[@earthling_parth]

@@amersiraz7455 Lol, what is there to be jealous about and from whom? Why kill only habitable planet we can live on by using fossil fuels when there are cleaner, more efficient energy sources to use? It is basic common sense, but then again common sense is highly uncommon :D

[@ziyad7600]

Actually the embargo had little to do with it, and it's a failed political weapon, it just hurts the reliability of Aramco to deliver, hence investors start looking for other sources of energy.

[@broadcase21]

so when will you publish "The Fall of Aramco?"

[@leemacdonald6533]

Not in our lifetime

[@alanmay7929]

ARAMCO is also heavily investing in greener alternatives to support their future

[@papito2222]

You would think with all this oil money Saudi Arabia would be like Singapore yet it’s more like modern Bangladesh.

[@zeezoo6174]

Why would it want to be like Singapore?

[@papito2222]

zee zoo I’m saying with all the money they make from oil you would think they be well develop and strong like Singapore but yet they still like a 3rd world country

[@zeezoo6174]

@@papito2222 probably spending all their money on weapons instead ha

[@autorefresher1]

Inefficiency, Corruption. Doesn't matter how much you throw at them, they will just find more ways to waste on their personal projects. Singapore on the other hand has no natural resources. So being efficient is literally the matter of survival.

[@gordonzuma6190]

Understanding yourself that two legal person's had an understanding come into operation at parliament after signing there ticket could not petify the issue must in the formal act thank you sir . Honourable member rise that these house the high service . Bill for act and matter memoradium long title bill for an Arabic language and study village according the house On Thu, May 20, 2021, 18:08

[@GibsonArtola]

Fascinating explanation...any way we can cut down these videos to 2 - 3 minutes max? Really don't have 10 minutes to watch all these interesting facts.

[@leonardlaw7]

Paul Gibson because KZbin only pays the creator if videos are at least 10 mins long

[@l3x475]

Let me guess.... Oil?

[@jerrywatt6813]

King Saud made sure foreign investment didn't damage the culture /religon of his nation something the usa failed to do with negative consequences as seen today King Saud Was A Great King Indeed !!

[@austinnolan30]

6:02 Do I spy Pablo Escobar in the pinstripe suit?

[@ahmedsaed7602]

Long live saudi arabia Great aramco💪💪

[@splats6164]

Americans work for this company in the middle east work for this company

[@karlreyes2384]

Living in an aramco compound ruined my childhood and still affects me today

[@splats6164]

I live in Dhahran and I'm from Houston. Saudi Arabia and Saudi Aramco is not bad. I've been there 9 years. Life has improved

[@oJuvawEx]

I was living there for sometime too, can you say why it has ruined your childhood?

[@iamgreat1234]

Walmart of American & Sinopec of China had higher revenue than Aramco.

[@mikey.1205]

Lol, Aramco doesn't even come close to Swiss Re Group

[@Randall2023]

Dauphin River First Nation Manitoba Canada

[@deepakgusain9561]

Basically Saudi as a country got listed

[@darriansims2192]

And they owe America every

[@rya_xo]

Darrian Sims They owe nothing.

[@auro1986]

is petroleum needed to make electric vehicles?

[@NotKimiRaikkonen]

The machines that mine and transport all of the raw materials are gas powered. They're assembled in factories that are coal powered. Same with charging batteries.

[@kevinreyes6633]

And also plastic and tech is made up of plastic

[@pedrohernandezjr4340]

Not in 10 years. The rise and fall of Aramco

[@adrianaadnan7704]

Oil company will be able to profit so long as theres oil so long as the earth is able to withstand the enveloping of the 4% carbon trapping the heat... the main goal is to utilize this IPO to end the oil addiction n diiversifying its economy.this is a brilliant move i'd say.

[@formatagfys1903]

Why they let them buy the company?

[@amazinghannure6440]

This is why no one questions the Saudis.

[@gordonzuma6190]

I remembered the job very well long title . Financial I am not an advocate to manage the executive arm of government of the national assembly to do so only for them that what so ever they have don't . The general procedure sir technical approved my issue now is the approved or entered that is concern blank operation On Mon, May 31, 2021, 09:05 Gordon Zuma

[@Reyzival]

Electric?

[@K4R3N]

Airplanes

[@prickowens9341]

Hotel? Trivago.

[@Jamesthomas007]

Aramco was a American company... info for the day

[@amersiraz7455]

James Thomas not American only lol it’s both cause US found oil and the oil belongs to KSA

[@ABF27]

Aramco = Arab American Company (Arab here referring to Saudi Arabia not the whole Arab world)

[@vismayravikumar7321]

What if Aramco moved their focus onto solar energy? Saudi Arabia is mostly desert, and is very sunny, dry, and hot.

[@centralintelligenceagency8122]

Moreover is someone can get energy from Sun why a country will buy it from Saudis ?. They will produce themselves and no need to depend on Saudi . Saudi is still floating because of oil can be extensively found in the Persian gulf region.

[@prickowens9341]

awesome 490 i think thats why Saudi Arabia has invested in tesla

[@alnash1433]

Maybe because solar energy is not as reliable as oil..

[@importantname]

Is Saudi Arabia a Company?

[@manchuratt8900]

This seems like an ad. I guess WSJ will run anything as long as the price is right.

[@raulfernandezg]

2:49 you can see how thanks to Trump, imports went down from 250 to 200 million. And now the US is a net exporter

[@treepeenbawlz1934]

RAUL FERNANDEZ omg wow! Did it credit trump in the chart?

[@arttv9577]

Those jumpy transitions between shots are super hard on the eyes. Please stop doing that and don't EVER EVER do it again. Thank you.

[@googleuser4765]

.The greatest company on earth

[@nighthawk6281]

I hope WSJ keeps making videos like these. Vox is too biased.

[@centralintelligenceagency8122]

Vox is sold to the leftist liberals just like Vice. I started to hate them both

[@robertcallaghan4029]

America's exports went up 1,000% in 10 years. That's why the boom.

[@aerodynamic1440]

No matter what's the reason, Saudi Aramco is the richest company in existence rn.

[@andrii5054]

6:14 WSJ do you recognize Crimea as a part of Russia and by doing so support its occupation?

[@ejpsh8758]

They don’t teach you nothing in school I generally have learnt more on KZbin, can you believe they didn’t teach us about this stuff?

[@wolfblitzer1981]

The crown prince's personal piggy bank

[@khalidalali186]

Did 1973 see a downfall in serial killings in America?

[@Hayanomie]

This IPO is happening right when countries are planning to become carbon neutral. There is a sleeping giant of millennials waiting to hold political office in many countries and come that time... The market will be gone. I say this as a Muslim but, God willing, Saudi demise is inevitable.

[@Jean-ys3bx]

Surprised this doesn't have more likes

[@RINAD333]

Then there is a Saudi giant that will control the whole of Middle East just like how we did in the past. Lol

[@Jakabokbotch2nd]

Guys if you guys forgetting global warming is happening right now...can we switch to clean energy? You know before it's too late

[@ahmeryaa865]

We have a town in Saudi Arabia that was used as testing grounds for solar energy for 40 years,if we close aramco at our current economical state we won’t survive. Our only option is to diversify the economy and open solar panels in the empty quarter desert,and possibly start selling electricity to nearby countries.

[@miadahhajbi6442]

الشيخ وليد

[@reydonescervana4945]

Arabian American Oil Company Aramco now Saudi Aramco.