AS Lesson2.pdf

Pakistan International School Jeddah(English Section) 2024 - 2025 AS - Saudi Studies Lesson2 Name: _____________________________ Date: ________...

Pakistan International School Jeddah(English Section) 2024 - 2025 AS - Saudi Studies Lesson2 Name: _____________________________ Date: ________________________ The Foundation of Oil Saudi Arabia is the world’s largest producer and exporter of oil and has one quarter of the world’s known oil reserves – more than 260 billion barrels. Saudi refineries produce around 10 million barrels of oil per day, The Saudi oil industry entered a new era in 1980 when the government assumed full ownership of Aramco, renaming it Saudi Aramco. The company began exploring in areas that had previously been untouched and discovered vast deposits of high- grade crude oil. Saudi Arabia continues to find new fields – such as one discovered 175 miles southeast of Riyadh on April 2005. Saudi Arabia from Field 7 in Dammam to more than 110 fields and 1,500 oil and gas wells. The most important of these wells in the Kingdom: 1- Ghawar field the largest onshore field in Saudi Arabia and the world. It produces more than half of the oil production extracted from all oil fields in Saudi Arabia. The area of the field is 256 km2, and it was discovered in 1948 AD. It is located 100 km from the city of Dhahran in the Eastern Province. The field began production in 1951 AD, and its daily production reaches 5 million barrels, and officials estimate that it contains about 120 billion barrels of recoverable oil reserves. 2- Abqaiq field It is the second oil producing field in the Eastern Province of Saudi Arabia. It is located 75 km2 south of the city of Dammam, which contains the largest oil refineries in the world. It was discovered in 1940. Its production capacity reaches more than seven million barrels of crude oil. In the Abqaiq field, there is a natural gas processing plant 3- Safaniya field. it is the largest offshore oil field. Its area is 750 km2. It was discovered in 1951 AD. It is 265 km away from Aramco Dhahran. His first production was in 1957 AD. Western Europe's oil consumption represented approximately 22% of total energy that year. Safaniya field produces approximately 1.2 million barrels daily. 1 4- Khurais field An oil field located in the Al-Ahsa region, which was discovered in 1957 AD. Actual production began in 2009. Its reserves are estimated at 27 billion barrels. It produces 1.2 million barrels of oil daily. Its area is 1200 km2. As the world’s largest producer and exporter of oil, Saudi Arabia plays a unique role in the global energy industry. Its policies on the production and export of oil, natural gas and petroleum products have a major impact on the energy market, as well as the global economy. Mindful of this responsibility, Saudi Arabia is committed to ensuring stability of supplies and prices. The Kingdom has repeatedly acted in times of crisis – such as the Gulf Crisis of 1990- 91, the 2003 Iraq war and market fluctuations of the late 1990s and covered any drop in oil supplies by increasing its output. OPEC Saudi Arabia’s oil production varies according to the state of the market and guidelines set by the Organization of Petroleum Exporting Countries (OPEC). Created in 1960, OPEC unifies petroleum policies among its member countries and ensures stability in international oil markets by eliminating fluctuations in prices. As a founding member of OPEC and its largest producer, Saudi Arabia has a leading role in guiding the organization to promote cooperation in energy issues, often acting as OPEC’s principal moderating force. OPEC’s 14 Member Countries are Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, the Islamic Republic of Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates and Venezuela. OPEC’s main objectives are given below: 1. Unification and coordination of petroleum policies among Member Countries, in order to achieve just and stable prices for petroleum producers. 2. Ensuring of an efficient, economic and regular supply of petroleum to consuming nations and an adequate return of investment. Arabian Drilling Arab Drilling works in drilling oil and natural gas wells in addition to services related to oil and natural gas extraction, test drilling related to mineral and precious metal exploration, and drilling tubular and manual water wells. Arabian Drilling, founded in 1964, is a prominent regional player in this sector, and it owns a fleet of onshore and offshore well drilling rigs in the Kingdom of Saudi Arabia, and the neutral zone between the Kingdom and Kuwait. Arabian Drilling has positioned itself to meet the changing needs of the industry and the world, integrating sustainable practices into all aspects of its work and contributing to responding to global energy demand in a sustainable manner. The sustainability roadmap for Arabian Drilling is also aligned with the United Nations Sustainable Development Goals and Saudi Vision 2030. 2  Dete:…………………. Quest for knowledge Exercise 1: Determine whether the following statements are true or false.: 1. Ghawar field is the smallest onshore field in Saudi Arabia. ( ) 2. Safaniya field is the largest offshore oil field. ( ) 3. Arabian Drilling specializes in drilling water wells only. ( ) 4. Saudi Arabia is a founding member of OPEC. ( ) 5. Saudi Vision 2030 has no connection to sustainable energy practices. ( ) Exercise 2: Discuss the following questions in small groups: 1. How does Saudi Arabia's role as the largest producer and exporter of oil impact the global energy industry? 2. What are the benefits and challenges of being heavily reliant on oil production for a country's economy? 3. How can Saudi Vision 2030 and sustainable energy practices align with the nation's oil-centric economy? 3  Exercise 3: Answer the following questions: 1. What is the significance of Saudi Arabia's oil reserves in the global context? ---------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------------- 2. Describe the transformation of Saudi Aramco and its impact on the oil industry? ------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- 3. Explain the importance of Ghawar field in Saudi Arabia's oil production? ------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- 4. How does OPEC contribute to stabilizing international oil markets, and what role does Saudi Arabia play in this organization? ------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- 5. Discuss the role of Arabian Drilling in the oil and gas industry, including its commitment to sustainability. ------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- 4