Saudi Aramco Downstream Roles and Activities

OIL AND GAS
ENVIRONMENT
Student number:49861
CINDY YULIETH
BARRIOS
RAMIREZ
Module Leader
Fiona Ogorie

Oil and Gs Environment
Lecturer Fiona Oghorie
Table of Contents
INTRODUCTION.................................................................................................................................1
LO 1 and LO 2 - Saudi Aramco Downstream Roles and activities........................................................2
Lo 3 Macro factors or elements affecting the cited organisation are described as below -.....................4
LO 4 Contribution to the indigenous people and to the local communities............................................5
CONCLUSION.....................................................................................................................................5
REFERENCES......................................................................................................................................6
0
2018

Introduction
In this report is going to emphasis in Saudi Aramco. Saudi Aramco is an oil and gas company
founded in 1933 after signed an agreement with Standard Oil of California (SOCAL) to give
permission to explore for oil in this country, SOCAL is a company controlled by California
Arabian Standard Oil Company (CASOC) which is based in San Francisco this company was
delegate the mission to explore. To accomplish this mission the Texas company (after named
Texaco) took possession of half of CASOC IN 1936, and in 1944, the company was renamed
the Arabian American oil company, or Aramco. Standard Oil Company (later Exxon)
and Socony-Vacuum Oil Company (later Mobil) became part owners in 1948 to provide help
with marketplace and investment for the massive hydrocarbons reserves in Saudi Arabia.
Aramco’s head offices move from San Francisco to New York as part of the change in
ownership. The company maintained a few offices in the US to do jobs like recruiting,
purchasing, shipping and other functions in support of the operations in Saudi Arabia. “In
1952, Aramco’s headquarters – including many officers and executive staff – moved to
Dhahran, Saudi Arabia, and in 1980, the Saudi government completed its gradual buyout of
Aramco’s assets. In 1988, the successor company was established as the Saudi Arabian Oil
Company (Saudi Aramco)” (Aramco, 2018).
Saudi Aramco is the biggest oil company in the world, Saudi Aramco headquartered in
Dhahran. Saudi Aramco “state that the produce one out of every eight barrels of oil in the
world, or about 12% of global production more than any other single producer” (Petroff,
2016)
The oil and gas industry are divide in to three major components: Upstream, Midstream and
downstream. In this report is emphasis in downstream and what are the roles and activities
and how Saudi Aramco work in this sector. Downstream involves: “oil refineries,
petrochemical plants, petroleum products distributors, retail outlets and natural gas
distribution companies” (PSAC, 2018)
PESTLE analysis applies to identify the risk in each factor and used as acknowledge to make
important decision in companies. PESTLE analysis is about “Political, Economic, social,
Technological, Legal and Environmental factors” (Ebooks, 2013).
Oil and gas development brings challenges to communities positive and negative like “Noise
pollution, Light Pollution Water pollution, Air pollution and Local Economy. Companies
must work together with the community affected by bringing Constructive Engagement,
Collaborative Processes, Community Resources” (BMP, 2018).
This report is going to state how Saudi Aramco work in the oil and gas downstream sector
discuss the roles and activities involved also discuss PESTLE analysis emphasising in
Economic and Environmental factors, discuss how Saudi Aramco is working with
communities and the contributions that are bringing back to them.
LO 1 and LO 2 - Saudi Aramco Downstream Roles and activities
“Downstream sector, involves the actual processing, and selling and distribution of natural
gas and oil based products” (STI, 2013). Downstream is the process where crude get
manufactured after distributing and finally get to the consumer(Rahm and et.al, 2014)
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