87 Years Ago, Saudi Arabia Discovered Oil, Transforming Its Economy
Exactly 87 years ago, Saudi Arabia witnessed a historic breakthrough when an American-owned oil well in Dhahran struck a massive petroleum reserve on March 3, 1938. The discovery marked the beginning of the transformation of Saudi Arabia into one of the largest oil producers and exporters in the world. It later reshaped the country’s economy, infrastructure, and global influence.
Prior to the discovery, Saudi Arabia was a relatively poor and underdeveloped country, relying heavily on agriculture and trading. The country’s economy was stagnant, and its infrastructure was limited. However, with the discovery of oil, the country’s fortunes changed overnight.
The story of the discovery began in 1935 when the California-based Standard Oil Company of California (SOCAL), now known as Chevron, sent a team of geologists to Saudi Arabia to explore the country’s oil potential. The team, led by geologist Karl S. Koch, spent several years searching for oil, but without success.
However, Koch remained convinced that there was oil in the region and continued to press his bosses to give him more time and resources to search for it. Finally, in 1937, SOCAL agreed to give Koch another chance, and he was allowed to explore a new area in the eastern part of the country.
On March 3, 1938, Koch and his team drilled into a new well in Dhahran, and to their surprise, they struck oil. The well, which came to be known as the Dammam No. 7 well, flowed oil at a rate of over 3,000 barrels per day, exceeding Koch’s expectations.
The discovery of oil in Saudi Arabia sent shockwaves around the world. It was a major find, not only for the country but also for the global energy market. The country’s oil reserves were estimated to be in excess of 25 billion barrels, making it one of the largest oil reserves in the world.
The discovery of oil had a profound impact on Saudi Arabia’s economy. The country’s oil revenues increased dramatically, and the government was able to invest in infrastructure, education, and healthcare. The country’s economy grew rapidly, and it became one of the wealthiest countries in the Middle East.
The oil industry also brought significant changes to the country’s social and cultural landscape. The influx of foreign workers and the growth of the oil industry created new opportunities for employment, education, and social mobility. The country’s cities, such as Riyadh and Jeddah, grew rapidly, and modernization and urbanization transformed the country.
The discovery of oil also had a significant impact on Saudi Arabia’s global influence. The country became a major player in the global energy market, and its oil reserves gave it a significant degree of economic and political power. Saudi Arabia used its oil wealth to build alliances and relationships with other countries, and it became a key player in international diplomacy.
Today, Saudi Arabia is one of the largest oil producers and exporters in the world, and its economy is still driven by the oil industry. The country’s oil reserves are estimated to be over 268 billion barrels, and it is one of the world’s largest oil exporters.
In conclusion, the discovery of oil in Saudi Arabia 87 years ago was a major turning point in the country’s history. It marked the beginning of a new era of economic growth, modernization, and global influence. The country’s oil reserves have played a crucial role in shaping its economy, infrastructure, and global influence, and they will continue to do so for generations to come.
Source: https://www.siasat.com/87-years-ago-today-saudi-arabia-struck-oil-3188755/
