Questions and Answers
What percentage of the world's known oil reserves is held by Saudi Arabia?
In which year did the Saudi government assume full ownership of Aramco?
Which is the largest onshore oil field in the world, according to the information provided?
When did the Ghawar field begin production?
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What is the estimated recoverable oil reserve in the Ghawar field?
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How much crude oil does the Safaniya field produce daily?
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Which oil field is associated with a natural gas processing plant?
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What year did actual production begin in the Khurais field?
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What is the daily oil production of Saudi Arabia?
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Which organization does Saudi Arabia primarily coordinate its petroleum policies with?
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What is one of the main objectives of OPEC?
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How has Saudi Arabia responded during times of crisis regarding oil supply?
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When was OPEC created?
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What does Arabian Drilling primarily focus on?
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What is a significant aspect of Arabian Drilling's operational strategy?
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How many member countries are part of OPEC?
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Which oil field is recognized as the largest offshore oil field?
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Which statement about Saudi Vision 2030 is true?
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What is a primary role of OPEC in the international oil market?
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Why is the Ghawar field important for Saudi Arabia's oil production?
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What implication does Saudi Arabia's position as the largest oil producer have on the global energy industry?
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Which assertion is correct regarding Arabian Drilling's specialization?
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What challenge is posed by a country heavily reliant on oil production for its economy?
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Which statement is true about Saudi Arabia's founding membership in OPEC?
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Study Notes
The Foundation of Oil
- Saudi Arabia is the largest oil producer and exporter globally, possessing one quarter of the world's known reserves (over 260 billion barrels).
- Daily production from Saudi refineries averages around 10 million barrels.
- In 1980, the Saudi government took full ownership of Aramco, subsequently renaming it Saudi Aramco.
- The company expanded exploration into untouched areas, discovering extensive high-grade crude oil deposits.
- As of April 2005, new oil fields continue to be discovered, including one located 175 miles southeast of Riyadh.
Key Oil Fields
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Ghawar Field
- The largest onshore oil field worldwide, producing over half of Saudi Arabia's oil.
- Spanning 256 km², it was discovered in 1948 and is located 100 km from Dhahran.
- Began production in 1951, yielding about 5 million barrels daily, with estimated recoverable reserves around 120 billion barrels.
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Abqaiq Field
- The second-largest oil field situated 75 km south of Dammam, with significant refining operations nearby.
- Discovered in 1940, with a production capacity exceeding 7 million barrels of crude oil daily.
- Hosts a natural gas processing facility.
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Safaniya Field
- The largest offshore oil field, covering 750 km² and discovered in 1951.
- Located 265 km from Dhahran, it commenced production in 1957, yielding approximately 1.2 million barrels daily.
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Khurais Field
- Located in Al-Ahsa, discovered in 1957, with production starting in 2009.
- Estimated reserves of 27 billion barrels, producing 1.2 million barrels of oil daily across an area of 1200 km².
Saudi Arabia's Global Impact
- Saudi Arabia plays a crucial role in the global energy market, acting responsibly to stabilize supply and prices during crises (e.g., Gulf Crisis of 1990-91, 2003 Iraq War).
- Oil production varies based on market conditions and OPEC guidelines.
OPEC
- Founded in 1960, OPEC aims to unify petroleum policies among member countries and ensure price stability.
- Saudi Arabia, as a founding and largest member, guides OPEC strategically and moderates cooperation on energy issues.
- OPEC comprises 14 member countries, including Algeria, Angola, Iran, Iraq, and Venezuela.
- Key objectives include coordinating petroleum policies for stable prices and ensuring an efficient supply of petroleum while providing adequate returns on investment.
Arabian Drilling
- Established in 1964, Arabian Drilling specializes in drilling oil and gas wells and related services.
- Operates a fleet of drilling rigs in Saudi Arabia and the neutral zone with Kuwait.
- Focuses on integrating sustainable practices into its operations, aligning with the United Nations Sustainable Development Goals and Saudi Vision 2030.
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Description
This quiz focuses on the foundation of oil in Saudi Arabia, highlighting its significance as the largest producer and exporter of oil globally. Students will explore key facts about Saudi oil reserves and their impact on the economy and global markets.
