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Operations Excellence Saudi Aramco original.pptx
- 1. Operations Excellence: An Analysis ofSaudi Aramco's Business Operations
- 3. 1933-1944 The birth of Arabianoil 1945-1965 Expansion 1966-1988 Making a name for itself 1989- 2017 A global company 2018- 2023 Transformation and energy security 1 2 3 4 5 Crude oil Concession agreement signed with Standard Oil of California which created the California Arabian Standard Oil Company (CASOC) to manage the Concession. CASOC renamed the Arabian American Oil Company. Standard Oil Company of New Jersey, later Exxon, purchased 30% of Arabian American Oil Company, and Socony-Vacuum Oil Company, later Mobil, purchased 10% to help provide market outlets. Oil production exceeded 2 mmbpd. Oil production averaged 4.5 mmbpd. The Saudi Government increased its participation interest in the crude oil Concession rights, production, and facilities to 100%. Saudi Arabian Oil Company officially established. First International downstream joint venture established in the U.S. Petro Rabigh, Aramco’s first petrochemical plant, began production. SATORP and YASREF refineries came online. Aramco acquired full ownership of Motiva. Commercial production of unconventional resources commenced in north Arabia. Highest single-day crude oil production of 12.1 mmbpd. Highest single-day natural gas production record of 11.3 bscfd. Acquired Valvoline Inc.’s global products business to complement Aramco’s premium-branded lubricant products. First production of unconventional tight gas at South Ghawar.
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- 5. Description: Shell hasthe leading brand value of all oil and gas companies worldwide. As of 2023, its brand was valued at 48.2 billion U.S. dollars. Read more Note(s): Worldwide Source(s): Brand Finance Shell Saudi Aramco PetroChina Sinopec TotalEnergies Chevron BP Adnoc Equinor Petronas 0 10,000 20,000 30,000 40,000 50,000 60,000 48,209 45,227 29,647 27,145 20,723 17,427 16,654 14,209 13,099 12,712 Brand value in million U.S. dollars 34 Brand value of leading oil and gas companies worldwide in 2023 (in million U.S. dollars) Leading oil and gas companies worldwide brand value 2023 MARKET COMPETITORS
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- 7. To achieve itsvision, Aramco focuses on four strategic themes across its businesses: STRATEGIC THEMES Upstream preeminence Downstream integration Lower-carbon initiatives Localization and the promotion of National champions As the principal engine of value generation, Aramco intends to maintain its position as the world’s largest crude oil company by production volume and one of the lowest-cost producers. The Company’s vast reserves base, spare capacity, and unique operational flexibility allows it to respond to changes in demand effectively. Aramco has a dedicated system of domestic and international wholly-owned and affiliated refineries that are critical to monetizing its upstream production. Through continued strategic integration, the Company captures additional value across the hydrocarbon chain. Aramco aims to lower the net carbon emissions of its operations and support the global energy transition through the development of a New Energies business that includes renewable power generation and lower-carbon products and solutions across the energy, chemicals, and materials sectors. Aramco facilitates the development of a diverse, more sustainable, and globally competitive in-kingdom energy ecosystem to underpin the Company’s competitiveness and support the Kingdom’s economic development.
- 9. OIL AND GASINDUSTRY VALUE CHAIN ARAMCO’S VALUE CHAIN ARAMCO’S BUSINESS MODEL THROUGHOUT THE VALUE CHAIN
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- 11. SWOT ANALYSIS STRENGTHS WEAKNESSESOPPORTUNITIES THREATS Efficiency and Reliability Advanced Technology Integration Safety and Environmental Stewardship Complex Infrastructure Market Dependency Diversification Strategies Innovation in Sustainability Global Collaboration Geopolitical Instability Climate-Related Challenges Adverse Market Conditions
- 12. WAY FORWARD • Diversification: Exploreopportunities in the hydrogen economy, including hydrogen production and distribution infrastructure. Develop partnerships or joint ventures with companies specializing in renewable energy technologies. • Technology Adoption: Implement AI and ML algorithms for predictive maintenance of equipment, optimizing production processes, and analyzing large datasets for decision-making. Deploy IoT sensors for real-time monitoring of assets, enhancing safety, and improving operational efficiency. • Sustainability Initiatives: Launch carbon capture and storage (CCS) projects to reduce greenhouse gas emissions from operations. Integrate circular economy principles into operations, such as recycling and reusing materials to minimize waste. • Market Expansion: Identify growth opportunities in emerging markets, particularly in Asia and Africa, for oil and gas exploration and production. Strengthen partnerships with key customers in existing markets to secure long-term contracts and enhance market share. • Talent Development: Implement training programs and mentorship initiatives to upskill employees in digital technologies, sustainability practices, and leadership skills. Offer competitive compensation packages and career advancement opportunities to attract and retain top talent in the industry.
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