OILAND GAS MANAGEMENT
Oiland Gas Management
SaudiAramco is officially recognized as Saudi Arabian Oil Company. It is anationalized corporation integrated, worldwide energy initiative, aswell as a global leader in exploration, fabrication, refining,dissemination, marketing, and manufacturing of petrochemicals.Similarly, Saudi Aramco manages the foremost established conformistcrude oil, condensate investments of 260.2 billion butts, andregulates the fourth-largest natural gas investments of 288.4trillion average cubic feet globally (SaudiArabian Oil Company,2014).It is also amid the leading manufacturers of natural gas, and holdingthe fourth-largest natural gas reserves around the globe. SaudiAramco headquarters is located in Dhahran, Saudi Arabia and itcomprises of more than 55,000 staffs. Initially, Saudi Aramco wasknown as the Arabian Standard Oil Company but changed its nameafterwards, once it got into partnership with Texas Oil Company.
Inthe course of four years, the corporations faced challenges in theirjourney of exploring and locating oil, but ultimately meet itssuccess via its seventh drill spot situated in Damman. Later on, thecompany changed its name again on 31stJanuary in 1994 to Arabian American Oil Company. The Companysustained its prosperity during the years, thus drawing manystockholders, for instance, the Socony Vacuum and the Standard Oil ofNew Jersey. Due to the United States backing in 1973, the SaudiArabian government succeeded to procure a 25% stake in thecorporation this occurred during the Yom Kippur war, whereas in1974, it managed to secure 60% more shareholdings. Successfully, thegovernment thrived in acquiring full control of the company in 1980,when it obtained 100% of the company’s stakes, thus, its namechanged to Saudi Arabian Oil Company, which is popularly known asSaudi Aramco (SaudiArabian Oil Company,2014).Since the company is integrated, it also has subordinate agencies,joint ventures, and associates in the United States, United ArabsEmirates, Singapore, State of Korea, Philippines, Netherlands, Japan,Greece, Egypt, and China. Saudi Petroleum Overseas Ltd is as well aportion of the Saudi Aramco it is based in London and is responsiblefor marketing as well as ocean transport provision facilities. One ofthe subsidiaries of Saudi Aramco owns a convoy of oil tankers for theconveyance of crude oil to key consumers.
Throughaffiliates, Saudi Aramco invests in refineries as well as deliverynetworks globally. Saudi Aramco celebrated its 75thanniversary in 2008 with the subject, “Energy for Generations.”The purpose of the theme was to honor decades of human accomplishmentas well as strong association (SaudiArabian Oil Company,2014). The company carries on in responding to the world`s need fordependable energy supplies and is dedicated to fulfilling that needfor generations coming up. Profoundly, the company is also committedto renovating for the future, hence dominating the initiative tosolve selected issues that are primary to the international energyindustry. The primary objective of Saudi Aramco is to become a fullyintegrated company by 2020, a leading supplier of oil and gas, aswell as a chemical and energy enterprise with wide-ranging operationsglobally.
SaudiAramco is governed by the board of directors, whereby his ExcellencyAli I. Al-Naimi chairs it as well as being the minister of mineralresources and petroleum. The board of directors serve as the stewardof the company, since it endorses corporate affairs, providemanagement with supervision that will define the durable approach forthe enterprise(Jaffe& Elass, 2007).Additionally, it controls emerging and constant risks, as well asevaluating the corporate opportunities. The Board comprises of seniorgovernment executives, heads of the foremost Saudi research andeducational institutes, high-level individuals in the global gas,oil, and economics industries, and high-ranking associates of SaudiAramco administration. Likewise, there are corporate managementaffiliates whose work is to make sure the company is fulfilling itsmission, as well as the structured key goals and business plans.Moreover, different individuals head each department for smoothoperation.
Theprominent person is the CEO, who is also referred to as the presidentof the company. Under the CEO, there is the chairperson of the board.There are heads of four major departments, namely industrialrelations, engineering in project management, upstream, and operationservices. Each department has further subdivisions. Under operationsservices, there is law, in upstream, there is downstream division,under engineering in project management, there is finance, and inindustrial relations, there is KAUST development. Additionally, thereis also a minor department corporate planning, management services,and the office of the department chairperson (Jaffe& Elass, 2007).So as to comply with the gender equality amendment, the company haswomen at the high-ranking positions therefore, it has designatedwomen to execute in the board as well as heads of department, such asthe industrial department. Importantly, the corporate has members ofthe stakeholders who steer the company as well as supporting theinvestment initiatives and finances.
Rolesand responsibilities within the divisions
SaudiAramco has several divisions within it however, two majordepartments are considered vital the fire fighters and theengineering divisions. The engineering department consists ofcohesive advanced technologies used to visualize, analyze, as well asto protect the company`s infrastructure. It is also responsible formaintaining the corporate workshop as well as running the company`ssoftware systems(Bechtold, 2012).A typical day for an industrial engineer is spent in the office withhis or her fellow colleagues trying to come up with different kind ofprojects, though, he or she might sporadically visit the field area,but this does not mean that he is a "field worker." Theprimary responsibility of firefighters is to react to accidents,fires, and any other occurrence that is risky to human life andproperty (Bechtold,2012).Firefighters are full-time employees because their work involvesresponding to variety of calls. Since an industrial company is veryvulnerable to explosions and fire outbreaks, the firefighterdepartment is equipped with contemporary apparatus for extinguishingfire and detecting smoke. The smoke detector is a scrutinized alarmthat is supposed to alert firefighters if the room temperature isabove the normal range.
Contributionof Saudi Aramco to the local society
SinceSaudi Aramco is a global corporate, it contains individuals fromdiverse background and societies. The company has worked hard toobtain trust and backing from communities and kingdoms around theworld. In return, it has created numerous opportunities for localenterprises and employment for citizens. Apart from conductingbusiness, the company participates in volunteer and outreach eventsthat campaign for healthy communities and enhance the lives ofindividuals. By operating on a foundation that shares similar valueswith citizens whether in jurisdictions of business opportunities,skill empowering, knowledge, cultural enhancement, or communityengagement, the company focuses on seeking opportunities where itscommercial interest accords to citizens’ goals, hence guaranteeingthat its business activities benefits both the company and knowledge(Al-Dhubaibet al., 2008).In order to bring a positive impact on Saudi societies, the companyis centered on prioritizing on the economy, environment, andknowledge issues.
Educationis an essential tool thus Saudi Aramco is employing it as acomponent to transform and assist in developing the next generationof investors, through emphasizing on the development of math,engineering, technology, and science skills in the youth. Besides,the company is seeking to expand intellectual inquisitiveness andmulticultural cognizance, which will also be an essential foundationstone for generating an economy centered on modernization andknowledge (Al-Dhubaibet al., 2008).Likewise, the company has launched an outreach program in quest ofmotivating individuals to become more energetic and beneficialmembers of their society. Saudi Aramco strives to nurture awarenessof essential issues, motivating inhabitants to make positivedonations towards advancing the company’s growth, whether throughleading a healthy standard of living, preserving energy and water orassisting the less fortune.
Thecorporate is committed to creating more significance. In everythingthey do, underlies the quest to go further than merely generatingrevenue. It evaluates its commercial activities through a rigorousprocess, so as to generate value beyond its business goals. SaudiAramco obliges to exploit the prospective multiplier of itsinvestments, and ventures to endorse maintainable economicimprovement that promotes energy efficiency, high-value employmentcreation (economy broadening). Notably, the company`s goal is toraise the level of locally manufactured materials as well as theservices it acquires to 70% by the year 2020 knowledge (Al-Dhubaibet al., 2008).In addition, it accelerates the global growth of societies throughits money-making operations. Mostly, the production of chemicals hasproven to be an economic diversification drive not only will itcreate opportunities for employment but also attract newmanufacturers and stimulate other services that will create businessand diversified job opportunities. Due to the high demand of skilledpersonnel, the company is partnering with local governmentorganizations to construct training institutes so as to empower theSaudi labor force to compete for occupation in the future.
Finally,Saudi Aramco owns an environmental-conscious conservation near itsoperational areas, thus, the company has decided to inaugurate awildlife reservation nears its facility, planting thousands of tressand launching artificial ridges, amid other endeavors. The corporatehas advocated for responsible guidelines, public awareness, andenergy modernization in order to uphold the lessening of energyconcentration across Saudi. In particular, the company has come upwith contemporary technological strategies aiming at loweringgreenhouse gas discharge through carbon capture and investing intoadvanced machinery that cut the emission of harmful gases into theatmosphere. Saudi Aramco’s determinations to safeguard theenvironment are not limited, it has partnered with other corporateleaders of different industrial companies to ensure that theiroperations are environmental-safe.
Inconclusion, Saudi Aramco is a global corporate, it is incorporatedwith individuals from diverse background and societies. The companyis essential, not only for its production of oil, but also for beingthe fourth-largest distributor of gas globally. Evidently, it plays asignificant role in the future of Saudi Arabia as well as itseconomy. Saudi Aramco considers its employees and the communitiessurrounding it as the most important resources, hence placing anemphasis on their skills, talent as well as teamwork. Due to thespirit of teamwork and recognition, Saudi Aramco’s personnel workto the highest standard the company requires, thus, they are valuedfor the role they play in its success. Since the company’s visionis to secure a better future for the next generation, every economic,social, and political analyst is keenly investigating Saudi Aramco,together with its accomplishments and ongoing projects. Saudi Arabiaintensely depends on the company for revenue and resources, thusmaking it a primary contributor to the country’s economy.
Thevision of Saudi Aramco is centered on improving the lifestyle ofevery individual in the country, as well as providing better health,education, utilizing its acquired assets, and creating employment forthe jobless. It is said that the Saudi’s are addicted to thecompany because of contributing to the society. As a result, SaudiAramco has become part of the society. Even though the company hasseveral flaws, by the end of the day, it has accomplished its goalsand initiated development of visions that will benefit the citizensof Saudi Arabia. For Saudi Aramco to achieve its vision 2030, first,it must eliminate corruption, impose transparency, honesty, anddetermination. Through the launched program by the company, manyindividuals have acquired basic and advanced education. Saudi Aramcowill always continue to be a dominant company in Saudi due to itsoutstanding success and achievements.
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Bechtold,M.C. (2012). Fromdesert to destiny: Saudi organizational leadership within the SaudiArabian cultural context,Fielding Graduate University.
Jaffe,A.M. and Elass, J., (2007). Saudi Aramco: national flagship withglobal responsibilities. TheChanging Role of National Oil Companies in International EnergyMarkets.
SaudiArabian Oil Company:Company Profile and SWOT Analysis. (2014).London. Progressive Media Group