Saudi Aramco: From 'Prosperity Well' to Energy Giant

The founder of Saudi Arabia King Abdulaziz speaks to the general manager of Aramco N. Devins during the opening ceremony of the Riyadh-Dammam train link in October 1951. (AFP)
The founder of Saudi Arabia King Abdulaziz speaks to the general manager of Aramco N. Devins during the opening ceremony of the Riyadh-Dammam train link in October 1951. (AFP)
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Saudi Aramco: From 'Prosperity Well' to Energy Giant

The founder of Saudi Arabia King Abdulaziz speaks to the general manager of Aramco N. Devins during the opening ceremony of the Riyadh-Dammam train link in October 1951. (AFP)
The founder of Saudi Arabia King Abdulaziz speaks to the general manager of Aramco N. Devins during the opening ceremony of the Riyadh-Dammam train link in October 1951. (AFP)

From its beginnings in 1938 when it first struck oil with the aptly named "Prosperity Well", Saudi Arabia's energy giant Aramco has delivered unimaginable riches to the kingdom.

Over the decades, the firm has grown into the world's largest and most profitable energy company, generating some 10 percent of global crude supplies and trillions of dollars in income.

Aramco shares hit the domestic bourse on Wednesday after the world's largest initial public offering in which 1.5 percent of its shares were sold to raise $25.6 billion.

After hitting its upper limit on the stock market debut, the company is now valued at a massive $1.88 trillion.

The listing came despite Aramco being hit by a string of attacks on its facilities, the latest and most serious on September 14 when drone and missile strikes halted the flow of 5.7 million barrels of oil per day -- more than half of its output, reported AFP.

The attack had threatened to undermine the IPO plans but the company quickly said it had restored production and output capacity to pre-strike levels.

Striking gold

Aramco has its origins in a 1933 concession agreement signed by the Saudi government with the Standard Oil Company of California. Drilling began in 1935 and the first oil began flowing three years later.

It gained its current name from the subsidiary created to manage the agreement that was called the Arabia American Oil Company in the late 1940s.

In 1949, oil production hit a milestone 500,000 barrels per day and the following year Aramco built the 1,212-kilometer (753-mile) Trans-Arabian Pipeline to export Saudi oil to Europe across the Mediterranean.

Production rose rapidly after the discovery of large offshore and onshore oilfields including Ghawar, the world's largest with some 60 billion barrels of oil, and Safaniya, the biggest offshore field with 35 billion barrels.

In 1973, with prices spiking at the peak of the Arab oil embargo the Saudi government acquired 25 percent of Aramco to increase its stake to 60 percent and become a majority stakeholder.

Seven years later, it was nationalized, and in 1988 it became the Saudi Arabian Oil Company, or Saudi Aramco.

From the 1990s, Aramco invested hundreds of billions of dollars in massive expansion projects, raising its oil output capacity to more than 12 million bpd, alongside making bold international acquisitions and pursuing joint ventures.

In mid-September, Aramco maintained some 260 billion barrels in proven oil reserves, the second largest in the world after Venezuela, in addition to 300 trillion cubic feet of gas.

Based in Dhahran in the country's east, the firm has key oil operations in the United States, China, India, South Korea and several European and Asian nations.

Aramco has also built a network of pipelines and refineries inside and outside the Kingdom and expanded its presence in the petrochemicals industry.

Earlier this year, it opened its account books for the first time, announcing a $111.1 billion net profit for 2018, up 46 percent on the previous year, and saying it had generated $356 billion in revenue.



What to Know About the Flash Floods in Texas That Killed over 100 People

 Firefighters from Ciudad Acuña, Mexico, transport a recovered body on the flooded Guadalupe River days after a flash flood swept through the area, Monday, July 7, 2025, in Ingram, Texas. (AP)
Firefighters from Ciudad Acuña, Mexico, transport a recovered body on the flooded Guadalupe River days after a flash flood swept through the area, Monday, July 7, 2025, in Ingram, Texas. (AP)
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What to Know About the Flash Floods in Texas That Killed over 100 People

 Firefighters from Ciudad Acuña, Mexico, transport a recovered body on the flooded Guadalupe River days after a flash flood swept through the area, Monday, July 7, 2025, in Ingram, Texas. (AP)
Firefighters from Ciudad Acuña, Mexico, transport a recovered body on the flooded Guadalupe River days after a flash flood swept through the area, Monday, July 7, 2025, in Ingram, Texas. (AP)

Flash floods in Texas killed at least 100 people over the Fourth of July holiday weekend and left others still missing, including girls attending a summer camp. The devastation along the Guadalupe River, outside of San Antonio, has drawn a massive search effort as officials face questions over their preparedness and the speed of their initial actions.

Here's what to know about the deadly flooding, the colossal weather system that drove it in and around Kerr County, Texas, and ongoing efforts to identify victims.

Massive rain hit at just the wrong time, in a flood-prone place

The floods grew to their worst at the midpoint of a long holiday weekend when many people were asleep.

The Texas Hill Country in the central part of the state is naturally prone to flash flooding due to the dry dirt-packed areas where the soil lets rain skid along the surface of the landscape instead of soaking it up. Friday's flash floods started with a particularly bad storm that dropped most of its 12 inches (30 centimeters) of rain in the dark early morning hours.

After a flood watch notice midday Thursday, the National Weather Service office issued an urgent warning around 4 a.m. that raised the potential of catastrophic damage and a severe threat to human life. By at least 5:20 a.m., some in the Kerrville City area say water levels were getting alarmingly high. The massive rain flowing down hills sent rushing water into the Guadalupe River, causing it to rise 26 feet (8 meters) in just 45 minutes.

Death toll is expected to rise and the number of missing is uncertain

In Kerr County, home to youth camps in the Texas Hill Country, searchers have found the bodies of 75 people, including 27 children, Sheriff Larry Leitha said Monday morning. Fatalities in nearby counties brought the total number of deaths to 94 as of Monday afternoon.

Ten girls and a counselor were still unaccounted for at Camp Mystic, a Christian summer camp along the river.

For past campers, the tragedy turned happy memories into grief.

Beyond the Camp Mystic campers unaccounted for, the number of missing from other nearby campgrounds and across the region had not been released.

Gov. Greg Abbott on Sunday had said that there were 41 people confirmed to be unaccounted for across the state and more could be missing.

Kerrville City Manager Dalton Rice said during a Monday news conference he couldn't give an estimate of the number of people still missing, only saying “it is a lot.”

Officials face scrutiny over flash flood warnings

Survivors have described the floods as a “pitch black wall of death” and said they received no emergency warnings.

Kerr County Judge Rob Kelly, who lives along the Guadalupe River, said Saturday that “nobody saw this coming.” Officials have referred to it as a “100-year-flood,” meaning that the water levels were highly unlikely based on the historical record.

And records behind those statistics don’t always account for human-caused climate change. Though it’s hard to connect specific storms to a warming planet so soon after they occur, meteorologists say that a warmer atmosphere can hold more moisture and allow severe storms to dump even more rain.

Additionally, officials have come under scrutiny about why residents and youth summer camps along the river were not alerted sooner than 4 a.m. or told to evacuate.

Rice said Monday that he did not immediately know if there had been any communication between law enforcement and the summer camps between 1 a.m. and 4 a.m. on Friday. But Rice said various factors, including spotty cell service in some of the more isolated areas of Kerr County and cell towers that might have gone out of service during the weather, could have hindered communication.

Rice said officials want to finish the search and rescue and then review possible issues with cell towers, radios and emergency alerts.

Officials noted that the public can grow weary from too many flooding alerts or forecasts that turn out to be minor.

Kerr county officials said they had presented a proposal for a more robust flood warning system, similar to a tornado warning system, but that members of the public reeled at the cost.

Monumental clearing and rebuilding effort

The flash floods have erased campgrounds and torn homes from their foundations.

"It’s going to be a long time before we’re ever able to clean it up, much less rebuild it," Kelly said Saturday after surveying the destruction from a helicopter.

Other massive flooding events have driven residents and business owners to give up, including in areas struck last year by Hurricane Helene.

President Donald Trump said he would likely visit the flood zone on Friday.

AP photographers have captured the scale of the destruction, and one of Texas' largest rescue and recovery efforts.