How Aramco Became the Biggest Company in the World | WSJ
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- čas přidán 22. 08. 2024
- 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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I'm a Filipino student and I literally pass this company every day going back and forth to school...
Corny.
that was pretty interesting actually
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.
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.
cook books probably...
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....
If they were to get listed in the us they would need to be very transparent with their books.
Are you stupid ? Their books ARE open and you can find it online along with the prospectus.
@@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.
3:21 * OPEC is Organization of the Petroleum Exporting Countries
big mistake in this context since the whole point is about the relationship between state and company
Well, someone noticed 😄
A mistake on her side
Wow and she is supposed to be an expert. Ouch!
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.
This piece is is eye opening, it shows just how much the Wall Street Journal omits in its essays.
What did they omit?
@@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.
@@VinceroAlpha sure
@@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
its crazy to think all this started while WW2 was going on
Plans and ships did not run on American values they run on Saudi oil
Saudi Arabia was part of the allies and helped cut energy to the axis...
WW2 = European War. There were no WW2 in North America, South America, Oceania, Sub Saharan Africa, or Southern Arabia.
@@ahrlj24 Might want to read your history books again.
@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.
OMG, did she say OPEC is the Org. of Petroleum Exporting COMPANIES? I thought she was an expert on the subject.
ಠ,_｣ಠ
She just reads what is written by some journalists. She might have misread...
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.
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.
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.
@@luddity everything you said is happening right now
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
No mention of the Petrodollar deal in early 1970's.
ISJST oh yeah! That’s true
why would the US sell all it's stake in Aramco if they knew what kind of demand thier oil had. Theres ur answer.
How does this play a role here? I don’t understand.
@@pa93562 what do you mean? I don’t get. USA sold their stakes to give their to Saudi military?
Very proud to be one of the Aramco employees.
Aramco is like a big monster being on the top compared with other companies
Excuse mm,Im looking for books (1930 to 1970) for my acadmic study ph.d.
Please..can we talk?
can i being a part of Aramco? i really would like to join you guys.. my country Indonesia would be very proud of that
can i being a part of Aramco? i really would like to join you guys.. my country Indonesia would be very proud of that
I am proud to be one of the Aramco employees
🔥🇺🇲🇸🇦🔥 me too
Middle East 1973: We will weaponize Oil
USA 1973: We will weaponize Islam
Backfires as a BBQ party in 2001.
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
Why did the USA sell their stake in Aramco? Can someone please explain in detail?
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.
Well, if the Saudi didnt give the company license to pumping oil on their land.. The company would be useless
The Saudis were going to stop the company from drilling so it was go bankrupt or sell.
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.
Wikipedia about Saudi Aramco: czcams.com/video/l3aCfpZmXuo/video.html
Saudi Aramco and saudi Arabia in general is the pinnacle of good oil management.
@jo ti Well that's a pretty Ignorant statement which shows the lack of understanding you have about it.
jo ti not really we make around 60 billion $ from the two holy mosques where millions of muslims visiting them every year (:
I love you guys!! Great production, with great content!
Great presentation I love Saudi Aramco
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.
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.
Arabic executives practically compose the house of saud, nothing will happen of that nature.
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.
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).
Nice job
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!
@@altrshakib9449 ''how it worked''
@@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.
@@lashachakhunashvili1399 btw I Have understood that without liking some ones comment, even if u reply to them CZcams wont send a single notif. Thus I liked ur reply,so u get a notif. I am interested to your reply
The part the Saudi's were least interested in the oil embargo is wrong. 4:36 Can you give the source of this.
I don't think people understand how Aramco and oil revenue works. It doesn't work like a traditional oil company. Aramco is given an operating budget. All the money from the oil that's produced goes to the government of Saudi Arabia. Aramco is not a rich oil company, it's value is only the ability to produce oil revenue for the government. It should not be economically valued at anything above zero.
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 ?
US gov can't interfere in private companies deals.
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
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.
Most likely for funding wars.
It's just a trick ! While still Today most of that Saudi money are invested in USA owned banks
8:48 LaSalle street Chicago, I can see my office!
I work four blocks north at Dearborn/Adams
Tesla must be the boogie man for Saudi Arabia
And hydrogen is the boogie man for Tesla
Btw Saudi government own 5% of Tesla
Aren’t Saudi investing in Tesla?
How d ya think most of electricity is generated?
DreadPirateRobert _ out of thin air if you ask these dumbfucks
Next Artificial intelligence please WSJ.
Ayee im am American working for the company. Its wonderful. They set up an enclosed compound full of foreign western and Saudi workers
I remember seeing the houses while on the way to the swimming pool. Good times.
@@ahmeryaa865 did u live in saudi? Are you American?
SPLATS nah I’m Saudi Arabian,my dad used to work for aramco years ago. They were good times not gonna lie
where do you get your information?
and now they're here in my hometown, Pengerang
Very informative !
In the past they say without oil you have nothing, same person today say "beg for oil more" 🤣🤣🤣🤣
Fossil fuels are a highly lucrative business. Refining the crude oil is also expensive.
Oil makes the world go round. not money
Huh instresting 🤔
Is that for pump aramco shares price? Cz it has being dumped since IPO.
Their days are numbered
Superbly done and researched. Thanx
Informactive ! ✊💢💯
On point johnathan William Bill rockefeller
Informative ! 👏🏼✊💢💯
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 !!
Fascinating 😃
Americans work for this company in the middle east work for this company
ARAMCO GO 2🎉❤
You would think with all this oil money Saudi Arabia would be like Singapore yet it’s more like modern Bangladesh.
Why would it want to be like Singapore?
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
@@papito2222 probably spending all their money on weapons instead ha
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.
If you like this you should check out "The Prize" documentary
The book is amazing, but the documentary still is a better start.
@@wardox3638 I bought 2 copies of the book! Agree but most people won't read 400+ pages.
I hope WSJ keeps making videos like these. Vox is too biased.
Vox is sold to the leftist liberals just like Vice. I started to hate them both
so when will you publish "The Fall of Aramco?"
Not in our lifetime
ARAMCO is also heavily investing in greener alternatives to support their future
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
RAUL FERNANDEZ omg wow! Did it credit trump in the chart?
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.
#GORENEWABLES
Parth Patel jealous much?
@@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
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.
Paul Gibson because CZcams only pays the creator if videos are at least 10 mins long
Living in an aramco compound ruined my childhood and still affects me today
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
I was living there for sometime too, can you say why it has ruined your childhood?
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.
Surprised this doesn't have more likes
Then there is a Saudi giant that will control the whole of Middle East just like how we did in the past. Lol
CFLOSON1 " SAYS " HELLO,
HELLO " DODGE " VIPER !?! ...
Aramco has big parternships in India too. Infact India has world's biggest oil refinery.
LIC: Hold my beer
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.
Long live saudi arabia
Great aramco💪💪
Not in 10 years. The rise and fall of Aramco
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.
Correction, The first Saudi CEO is Abdullah Jumaah.
This is huge.this is a revolution. A revolution that would even take mbs by surprise.
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.
And they owe America every
Darrian Sims They owe nothing.
Yes
.The greatest company on earth
Let me guess.... Oil?
This is why no one questions the Saudis.
So far saudia is the number one supplier entire world of gas and petroleum? But mybe in near of future Philippines raised
2:04 4:37 5:27 7:08 7:51
Love ❤️ Saudi Arabia 🇸🇦
This oil is a blessing or a gift from god and prophet Muhammad but arabs didn’t use it in a good way
so...Isreal is the factor of oil price going up.. if isreal not invaded pelestin.. we all could enjoy the lowest price and drive V8 car
Israel is only tiny factor. The larger problems are civil wars in oil producing Libya, Syria, instability in Yemen that borders ocean, potential war between the US/Iran in the Persian Gulf, and the turmoil in Iraq. Then there OPEC. Once a new baseline of prices is established for a barrel of oil it usually doesn't go back down.
How? Oil
sooooo Dei basically have to open and close the tap and wait
nice model!
They don’t teach you nothing in school I generally have learnt more on CZcams, can you believe they didn’t teach us about this stuff?
Basically Saudi as a country got listed
Now apple is the biggest company
Im curious about the future aramco , with new lithium battery era . What the strategy for occupying the international market like in 80s for oil .
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
अर्थशास्त्र 🙏🙏🙏🙏🙏
Walmart of American & Sinopec of China had higher revenue than Aramco.
New areas for oil like where?
is petroleum needed to make electric vehicles?
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.
And also plastic and tech is made up of plastic
What if Aramco moved their focus onto solar energy? Saudi Arabia is mostly desert, and is very sunny, dry, and hot.
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.
awesome 490 i think thats why Saudi Arabia has invested in tesla
Maybe because solar energy is not as reliable as oil..
a company owned by the family that killed a US Reporter and dismembered him in his hotel just a year ago. doesn't matter how wealthy those ppl are barbaric
I was employee aramco
Dauphin River First Nation Manitoba Canada
This seems like an ad. I guess WSJ will run anything as long as the price is right.
Did he mention fraking😞
Electric?
Airplanes
Hotel? Trivago.
Why they let them buy the company?
Seriously did this need a video? We had the equivalent when we had standard oil...we broke it up. They are a monopoly sitting on an OCEAN of oil. And they are still over valued.
They're a monopoly in Saudi Arabia. There's plenty of competition on a global scale. From Norway to Venezuela.
@@NotKimiRaikkonen The difference is that Total or Conoco are not national champions backed by a kingdom as its national champion. Aramco is fine, eventually the ocean will go away and it won't matter. It's still not worth 2 trillion.
This is arab american petrolium company ..aramco.not saudi company.arab american collaboration.
6:14 WSJ do you recognize Crimea as a part of Russia and by doing so support its occupation?
Black gold
Lol, Aramco doesn't even come close to Swiss Re Group
But not the biggest and richest company ever …… that was the Dutch East India Company!! Get your facts straight!
Interesting, all I know is Isaac and Ishmael reunited for their father Abraham's funeral,
Esau and Jacob reconciled their kinship,
And Joseph , the Eminance Grace to Pharoe , united with his brother.
That is to say when taxes are low surpluses occur.
*.brothers.*
the sum of the whole is greater than the division of its parts. nothing but love
STANDARD OIL COULD BE BIGGER THAN ARAMCO IF THEY DIDN’T BREAK UP.
cave web So what? It was a monopoly.
DerBro Mysize : Regional Monopoly just like Aramco. Google is real Monopoly in search engine.
Did 1973 see a downfall in serial killings in America?
Guys if you guys forgetting global warming is happening right now...can we switch to clean energy? You know before it's too late
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.