The Rockefellers played a foundational role in Saudi Arabia’s rise to wealth through their connection to Standard Oil, which was instrumental in the initial development of the country’s oil industry. In 1933, a landmark agreement was signed between Saudi Arabia and the Standard Oil Company of California, a company with roots in the Rockefeller legacy, leading to the creation of Aramco. This partnership was pivotal in transforming Saudi Arabia from a poor, isolated region into a global economic power by unlocking its vast oil reserves, discovered in 1938. The Rockefellers’ influence extended beyond the initial agreement, as their company’s involvement helped build the infrastructure necessary for oil extraction and export, laying the groundwork for the kingdom’s immense wealth. While the Rockefellers were not the direct source of Saudi Arabia’s current wealth, their early partnership with the Saudi government was a critical catalyst in the nation’s transformation.

In 1933, a landmark concession agreement was signed between the Kingdom of Saudi Arabia and the Standard Oil Company of California (SOCAL), a company with roots in the Rockefeller legacy, which led to the creation of the California Arabian Standard Oil Company (CASOC) to manage the agreement. This agreement granted SOCAL the rights to explore for and produce oil in eastern Saudi Arabia for 60 years, a region larger than the state of Texas, in exchange for immediate financial support and future royalties. The agreement was finalized on May 29, 1933, in Jiddah, with Saudi Finance Minister ‘Abd Allah Al-Sulayman and SOCAL attorney Lloyd N. Hamilton as the lead negotiators. The partnership between the Saudi government and SOCAL eventually evolved into the Arabian American Oil Company (Aramco).

Saudi Government and SOCAL Partnership

The partnership between the Saudi government and Standard Oil of California (SOCAL) began in 1933 with a concession agreement that granted SOCAL exclusive rights to explore for oil in Saudi Arabia. SOCAL established a subsidiary, the California Arabian Standard Oil Company (CASOC), to manage this agreement. In 1936, the Texas Company (Texaco) acquired a 50% stake in CASOC to help finance exploration. After the discovery of commercial oil at the Dammam No. 7 well in Dhahran in 1938, the company’s operations expanded significantly. In 1944, the company was renamed the Arabian American Oil Company (Aramco) to reflect its growing multinational partnership, which by then included the predecessors of Chevron, Texaco, Exxon Mobil, and other U.S. firms. This partnership continued until the Saudi government completed its full buyout of Aramco’s assets in 1980.

Aramco Renamed 1944

In 1944, the company was renamed the Arabian American Oil Company (Aramco) to reflect its growing multinational partnership, which by then included the predecessors of Chevron, Texaco, and Exxon Mobil. This change followed the addition of the Texas Company (later Texaco) and the Standard Oil Company of New Jersey (later Exxon) to the original partnership between Standard Oil of California (SoCal, now Chevron) and Texas Company. The name change was formalized on January 31, 1944, after the company had expanded its operations and ownership structure.

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