1 / 11 / 2009
The Reason Of Reach
The Reason the Saudis are so Rich
Extracting oil from the ground is complicated - but it’s also a well established science. Have you asked yourself how much exactly does it costs Saudi Aramco, the state-owned national oil company of Saudi Arabia and the world’s largest oil producer, to produce a barrel of crude oil?
Forbes magazine has the answer:
Aramco can quench its gargantuan thirst for development: It’s easily the most profitable company on the planet. While results are closely held, Aramco stands to net, after amortization of capital costs, roughly $200 billion a year on revenue in excess of $350 billion. Last year oil minister Ali Al-Naimi told reporters that the average barrel of Saudi oil costs just $2 to produce. It sells for $130.
