Americans find oil in Saudi Arabia - Mar. 3, 1938

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Today is March. Third Twenty twenty. The Day was March third. Nineteen thirty eight. A group of oil prospectors working for an American company discovered a commercially viable source of Petroleum Mayor Demaim in Saudi Arabia since then Saudi Arabia has consistently been one of the world's top oil producers. The Kingdom of Saudi Arabia was established in one thousand nine hundred eighty two when even so combined four regions into one st through conquest even so called for searches for oil a resource that had demand and would be big source of income for a country that needed a boost in its economy in nineteen thirty three. Saudi Arabia signed a contract with the Standard Oil Company of California. Also known as so cow. So cal was granted the right to prospect for oil in Saudi Arabia's eastern provinces side note. So cal is now. Chevron in September of that year American geologist arrived in Saudi Arabia to begin surveys of the land by car airplane. A couple of months later the California Arabian Standard. Oil Company was formed. Cassocks name was later changed to Arabian American Oil Company or Aramco. Geologists began surveying an area around ideological formation near the city of Demaim on the east coast of the country drilling. The first began in April of nineteen thirty. Five in terms of the second whale started in February of Nineteen thirty six soon. More wells were authorized in the area. Those wells did produce some oil but most of them eventually produced more water than oil. Demaim Oilwell number seven at first seemed like it would also be fruitless. The well reached more than three thousand feet beneath the earth. And no water or oil had been found but chief geologist Max. Steiner key thought that they would find oil in the will and he told the company to keep drilling they did and on March third nineteen thirty eight. They struck a significant amount of oil within three weeks. The well had produced over one hundred thousand barrels of oil. In the beginning the oil was sent to. Bahrain barred for export but in nineteen thirty nine. The first tanker load of oil was shipped overseas now. That castle had found oil. It continued mapping and exploring Saudi Arabia looking for more by nineteen forty nine Kazakh. Now Aramco had reached a production of five hundred thousand barrels per day by nineteen fifty. The Trans Arabian pipeline. Had Begun Operations Aramco already paid Saudi Arabia a fee and other benefits but that year. Aramco began to split its profits but the Saudi government nineteen seventy-three the Saudi government purchased twenty five percent of Aramco by the next year it increased. Its stake to sixty percent and in one thousand nine hundred eighty all of course oil rights production apparatus and facilities came under government control by this time demaim oilwell number seven alone have produced more than twenty seven million barrels. Eight years later the company became Saudi Aramco over the next few decades. The company continued to expand its operations and production fuelling Saudi Arabia's economy of course oil production in Saudi Arabia has been an issue closely tied to economics politics and the environment today. Saudi Arabia is the world's second largest crude oil

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