Aramco: Leading Oil Producer and Economic Driver for Saudi Arabia - Essay Sample

Introduction

Globally and in Saudi Arabia, Aramco is the leading oil producer. Since it leads to producing oil, this makes bankers prefer it more. Aramco is always in news headlines, for example, Aramco Company received a significant amount of orders that ranged from $100 to $140 billion, as a result, concerns about kingdom stability and trajectory oil prices shifted upward (Critchlow, 2019). Additionally, the article stresses on how Saudi Arabia oil contributes mostly towards the country's economic growth through its foremost Aramco Company. According to the achievements made by Aramco Company, it indicates that oil will continuously be a global consideration for years to come without any doubt.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Saudi Arabia's leading oil producer is preferred by bankers because it can gather vast amounts of revenue together with its profitability in the form of revenue generation. Aramco Company, importantly, happens to be one of those companies that are profitable globally. Saudi Arabia government itself acts as an essential stakeholder to this oil, as indicated in the article (Critchlow, 2019). With an increase in commodity supply, demand also rises; hence, the only marketing mix element that produces revenue and profit is price. Therefore, investors are enticed by the largest and leading crude producer as they usually relate this with business doing.

The Link Between This Article to Knowledge Points Learnt in Lecture Notes

Just as internal and external factors affect pricing decisions, Saudi Aramco believes that since marketing is professional, it acts as the hallmark in their daily commitments to customers from a diverse environment. Efficient and innovative techniques ensure the accomplishment of marketing objectives in which research about the market is compiled. Currently, Saudi Arabia follows business to the business strategy of communication in order to brand its product and make it known. Customers are served with effectiveness, and Aramco exports its products of high quality to various countries.

In our lecture notes, we learned that profit goals enhance profit maximization; consequently, Aramco as the largest oil producer continuously registers profits that are high in terms of internal revenue collection and earnings. Moreover, investors did argue that Aramco Company balance sheet proves that it is indeed larger when compared to technology giant apple size. Aramco Company in last year registered profits that were high over $111US billion. Aramco Company registers high profits which make it one of the largest companies that subsidize towards the growth of the economy in comparison with Shell and ExxonMobil; correspondingly, in terms of profits Aramco has the largest value (Critchlow, 2019). Aramco produces, supplies, oil and plans to purchase stake at a seventy percentage in Subic. Undoubtedly, in the Middle East, Subic is known as the largest petrochemical and plastic producer. However, Saudi Arabia is facing complains and criticisms from the United States of America's president about the fluctuating and high oil prices. Claims from President Trump are that these oil prices in the global economy are climbing at a higher rate. On the contrary, if the Nopec legislation passes and becomes a law successfully, it will play a significant role in Aramco Company and make it look more toxic. In the economic sector, notwithstanding these concerns, money is a vital aspect.

Conclusion

In conclusion, Aramco successes are attributed to competence to make high profits and attracting more investors as compared to other business companies. This demonstrates that in the global market, there is high oil demand and supplies daily continue to expand in order to enhance consumers' satisfaction in return, Saudi Arabia's economy develops.

References

Critchlow, A. (2019). Oil will be the life blood of the global economy for years to come. April 16th, 2019. The Age Newspaper. Retrieved on 18th August 2019 from https://www.aacs.org.au/media/latest-news/oil-will-be-the-lifeblood-of-the-global-economy-for-years-to-come/