1/ As Aramco readies to go public in the world’s biggest-ever IPO at a valuation of $1.7 trillion, it is worth remembering that the world's largest oil producer is arguably Silicon Valley's most successful startup.
2/ In 1933, Saudi Arabia granted Standard Oil of California (SoCal) exclusive rights to look for oil in its Eastern province. The Kingdom lacked basic infrastructure and had no familiarity with modern technology. Oil was selling for less than 50 cents a barrel.
3/ Not only the drilling rig and equipment, but every item of lumber, hardware, plumbing and steel needed to create living quarters, pipe for water, transportation equipment, food and personal requirements had to be brought over in a supply line reaching from the United States.
4/ In 1936, 38-year-old Max Steineke was appointed chief geologist at the joint US-Saudi venture California-Arabian Standard Oil Company (CASOC). He was a Stanford graduate and prominent American petroleum geologist who knew more about Saudi Arabia's geology than anyone. 
5/ The search for oil began in Dammam. Well No. 1 proved a loser. No. 2 went wet, producing eight times more water than oil. No. 3 had a flow of under 100 barrels of heavy oil a day, with 15 percent water. No. 4 and 5 was dry. No. 6 showed only a little oil mixed with water.
6/ In early 1938, Steineke was called back to San Francisco. Many million dollars had been sunk and SoCal decided to pull the plug on Saudi Arabian exploration. Steineke was adamant to keep on drilling and convinced his managers to wait for the results from Dammam No. 7.
7/ Steineke’s efforts and persistence through repeated setbacks led to the first discovery of oil in commercial quantities in Saudi Arabia in March 1938. Dammam No. 7, which Saudis aptly called the “Prosperity Well,” would eventually pour out more than 32 million barrels of oil.
8/ Steineke had “at least a finger” in the discovery of every oil field in Saudi Arabia until his death in 1952. Today, Aramco pumps 10% of the world’s supply and makes annual profit of $111 billion, over a third bigger than the combined net income of the five super oil majors.
9/ Saudi Aramco was a wholly US-owned company until 1973, when Saudi Arabia demanded and got 25% share in the operations as they realized they were being cheated on pricing. The Kingdom increased its stake to 60% in 1974, before completing buying out US shareholders by 1980.
10/ French writer Antoine de Saint-Exupery said, “What makes the desert beautiful is that somewhere it hides a well.” None of this would be possible without American technology and a young Stanford graduate who revolutionized hydrocarbon exploration in the Middle East.
