Investigative Report





Investigative Report

Strategic Intent

Saudi Aramco is a state-owned oil company located in the Kingdom of Saudi Arabia. It is a fully integrated chemicals and global petroleum enterprise with a subsidiary entity in the United States that is responsible for operations in North and South America. The strategic intent of the company is to become a leading provider of energy and chemical petroleum products to consumers around the world. The entity is moving towards 75% local content by the year 2017. In addition, the entity is geared towards ensuring that it conducts its business activities and operations in a safe, legal, ethical, and environmentally responsible manner.

Core Competencies

Saudi Aramco is considered as the largest enterprise in the global oil industry. It holds the most major offshore and onshore oil fields with the highest global crude oil volumes in its reserves. This provides it with an important position in the global oil and gas industry in terms of competitive advantage given its extensive resources and reserves. Thus, the entity is well placed in terms of providing clean and quality energy to the public by using its vast resources and networks towards sustainable extraction oil and gas in its reserves (Marcel 47).

Additionally, the entity has numerous subsidiaries across the globe, which is an important competency towards easy access to customers with varied needs. The entity has gained extensive experience and capabilities given its existence for more than 80 years. This has enabled it to achieve a leadership position in the global petroleum industry and more so as a primary player in the Saudi Arabian economy. The core capabilities include the ability of the entity to undertake complex and extensive refining, distribution, exploration, and production activities. Refining and distribution is a final process, which the entity has been able to expand and enhance efficiencies as a means of reducing costs and achieving its strategic objectives towards quality and sustainable energy products (Kultgen 41).

Primary Activities

Saudi Aramco together with its subsidiaries has a variety of technical activities namely environmental services, engineering, project management, information technology, and inspection units. The entity has its headquarters in Dhahran Saudi Arabia with operations spread out in the entire kingdom of Saudi Arabia. It has affiliates and subsidiary entities around the world in countries like China, Saudi Arabia, Japan, India, United States, the Republic of Korea, the United Kingdom, the Netherlands, Egypt, Singapore, and the United Arab Emirates (Jungers 28)

The focus of the entity is on various critical areas like upstream exploration and production and downstream activities. Upstream activities, which focus on exploration and production, are responsible for crude oil and gas finds both offshore and onshore. Upstream activities also ensure the management of fields for optimized long-term production and efficiency in crude oil, natural oil, and condensates extraction. Downstream activities include refining of condensates, crude oil, fractionating of the natural gas, and the sale and distribution of natural liquids and gas, petrochemicals and petroleum fuels to various consumers around the world.


  1. Saudi Arabian and foreign government
  2. Logistics and procurement companies
  • Local communities in various markets of operations
  1. Suppliers
  2. Shareholders
  3. Consumers

Corporate Strategy

The entity’s corporate values are excellence, accountability, safety, citizenship, and integrity. They form an important part of decision-making processes and corporate strategy as undertaken by the organization. Saudi Aramco was admitted into the world trade organization in the year 2005, which provided it with an exceptional opportunity to enhance its trade activities in the petrochemical business. In addition, the entity has been able to optimize on its extensive reserves, network, and expertise to maintain low prices in comparison to other countries. This makes the entity a high player given that its low prices are attractive to a majority of the developed nations, which have experienced significant increases in demand for petrochemicals (Victor, Hults, and Thurber 41).

Business Strategy

The entity’s business strategy is to enhance its share in the international crude oil and gas industry. Given the global trends towards sustainable products, the entity is focusing on shale gas production as it reduces its oil production in the coming years. The entity is also looking forward to the revitalization of its exploration and production activities as a means of improving output and ensuring its high status in the international crude oil and gas markets (Nawwab et al. 44). Furthermore, the entity is also enhancing its innovation capacity as a means of improving its refining and distribution capacities. This is vital given that it will provide the entity with a method of exploring new emerging markets in Asia and Africa. This is integral for the entity towards improving its profitability, competitiveness, and the presence in a highly volatile market (Al, Nasser 39).




















Works Cited

Al, Nasser A. Aging Workforce at Saudi Aramco: Implications, Challenges, and Strategic Directions. Saarbrücken: LAP LAMBERT Academic Publishing, 2014. Print.

Kultgen, D. B. “Saudi Aramco: a Look Ahead.” The Journal of World Energy Law & Business. 7.2 (2014): 153-161. Print.

Marcel, Valerie. Oil Titans: National Oil Companies in the Middle East. London: Chatham House, 2006. Print.

Nawwab, Ismail I, Peter C. Speers, Paul F. Hoye, and Paul Lunde. Saudi Aramco and Its World: Arabia and the Middle East. Dhahran, Saudi Arabia: Saudi Arabian Oil Co. (Saudi Aramco, 1995. Print.

Jungers, Frank. The Caravan Goes on: How Aramco and Saudi Arabia Grew Up Together. Medina Pub Ltd, 2014. Print.

Victor, David G, David R. Hults, and Mark Thurber. Oil and Governance: State-owned Enterprises and the World Energy Supply. Cambridge, UK: Cambridge University Press, 2014. Print.


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