1925- Druse Revolt Against the French

Bagdahd
Damascus

In 1936, Standard Oil of California discovered oil under the Saudi desert. The discovery of oil tranformed the Kingdom of Saudi Arabia into one of the richest nations on earth..


    In the early 20th century, Saudi Arabia was a relatively impoverished kingdom whose economy depended primarily on the pilgrimage to Mecca and on the limited agriculture possible in its harsh desert environment. This dramatically changed in 1936 when Standard Oil of California, later known as Chevron, made a landmark oil discovery beneath the vast Saudi desert.

    The discovery of oil was the result of a concession agreement made in 1933 between the Saudi Arabian government and the Standard Oil Company of California (SoCal). This agreement granted SoCal exclusive rights to explore and extract oil in the country's Eastern Province. After three years of exploration, oil was struck near the town of Dhahran at a site named Dammam No. 7, also known as the "Prosperity Well". This marked the beginning of the transformation of Saudi Arabia.

    From that point, Saudi Arabia's oil production rapidly increased. During World War II, the strategic importance of oil was recognized globally, and the Saudi reserves became especially crucial. In 1944, SoCal and its subsidiary, the Arabian American Oil Company (Aramco), gained global prominence.

    Post-war, the demand for oil skyrocketed due to worldwide industrialization and the growing use of automobiles. Saudi Arabia was perfectly positioned to meet this demand, with its vast reserves and the infrastructure provided by Aramco. By the 1970s, oil revenues had made Saudi Arabia one of the wealthiest nations in the world.

    The discovery of oil not only brought wealth but also facilitated significant social and infrastructural development. The oil revenues financed the creation of a modern welfare state, with extensive public services and infrastructure. From roads and schools to hospitals and advanced telecommunications systems, the landscape of the nation changed dramatically.

    However, the oil boom also brought challenges. The sudden wealth led to rapid urbanization and shifts in societal norms. The dependence on oil revenue also made the economy susceptible to global oil market fluctuations.

    The oil discovery and subsequent developments catapulted Saudi Arabia to a position of global geopolitical significance. Saudi Arabia became a key player in world energy markets, and its decisions on oil production levels continue to have global ramifications. Its membership in OPEC (Organization of Petroleum Exporting Countries) and its later formation of the G20 further solidified its international role.

    The transformation of Saudi Arabia from a relatively unknown desert kingdom to a rich and influential player on the world stage underlines the profound impact of the discovery of oil in 1936.