Essay Sample on Saudi Aramco Company

Paper Type:  Essay
Pages:  7
Wordcount:  1696 Words
Date:  2022-12-05


Saudi Arabia is one of the large scale petroleum producers in the world. This is one of the contributing factors of the challenges the company faces in regards to conservation of the environment. Air pollution in the country is estimated to be 66.32% while water pollution is 48.75%, garbage disposal 54.41% (Ahmad et al., 2016). The country has been forced to come up with serious strategies to curb these challenges. The government has also come up with regulations which are based on the county's vision 2030 together with the National Transformation Program which is contained in the country's 2020 objectives. Companies, based on the country's sustainability program have innovated methods that will help to reduce the level of pollution in the country.

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As a result, some companies have come up with strategies to facilitate socio-economic development to address contemporary issues in society (Alsubaie, 2016). Saudi Amraco is one of the companies whose corporate values are in accordance with the government's objectives. The company produces oil and gas, and it is an integrated business that also generates power as well as running oil refineries in the country. The company also runs petrochemical plants that deal with the conversion of natural resources such as crude oil into various useful products like petroleum, building blocks, and aromatics, among others. It has focused on enduring that its clients, shareholders, and partners are aware of their operating philosophies. This has made it easier for the company to deal with the issues of energy wastage and they have also contributed greatly to reducing pollution.

Based on the company's reports it is evident the company has adopted safe, sustainable and reliable ways to carry out their operations. The company aims at reducing the power usage in the offices by installing motion sensor switches, and it also aims at reducing the energy consumption in households and transportation sector by thirty percent. Lastly, it aims at replacing sixty thousand fluorescent lights with efficient LED lighting within the company's industries and offices (Al Ghamdi & Thomson, 2018).

Air Pollution Regulation

The company also focused on addressing the Carbon (IV) oxide menace which is one of the leading air pollutants. The company has adopted The Carbon Capture and Storage that involves capturing almost ninety percent carbon (IV) oxide produced by the fossil fuels they use in their operations (Alkhathlan & Javid, 2015). The company has partnered with other companies in the country including SABIC to counter achieve this goal. The capturing of carbon has been able to reduce air pollution in the country significantly. However, the captured carbon is also used by the company into useful industrial products which have benefited the company significantly.

Energy Regulation

The company also regulates the amounts of energy it uses while carrying out its operations (Samargandi, 2017). Consequently, this has encouraged the company to invest in technologies that aid the company to reduce its total energy consumption and they have achieved this by thirty-five percent. The company has made this by adopting efficient technologies including the flare gas recovery which an efficient way to reduce the energy their energy usage. The company captures and uses wasted energy sources, and its industries produce less than one percent gas. Secondly, the company's Peak summer production program focuses on increasing additional volumes of non-associated gases to reduce the use of liquids used to generate power in the country. The company displaces crude oil and frees high-value liquids and at the same time reduces emissions. The company uses different forms of energy including cogeneration which involves converting thermal energy from the plant's exhaust stream. This method requires less fuel, and less energy is also lost during the transmission process. Cogeneration systems have helped the company also to achieve hundred self-sufficiency power generations. It has also enabled the company to produce electricity as a byproduct which they use for their operations, and this is crucial for their consumption. Energy is one of the most critical resources in every company considering it is the primary raw material of production. It therefore critical for a company to reduce the energy it uses since it saves a lot of money which and it also reduces the cost of production. This way the company can compete effectively in the market which gives them an upper hand compared to the other companies.

Water Pollution Regulation

The company also runs a project that protects marine ecosystems. Oil spillages are common, and most companies in the country have failed to curb these spillages (Youssef et al., 2015). The company has established an oil spillage response organization that responds to any incidents reported in the country. They train their workers on how to act when there are spillages, and they also have adequate equipment. They have emergency equipment, oil spill response, regional command and aircraft to handle spills. Lastly, the company has a team that monitors any spillages whose surveillance is in all the offshore operating areas. The company also carries out programs that control the country's coastlines bioaccumulation of hydrocarbons and heavy metals into marine ecosystems (Youssef et al., 2015). The company has partnered with researchers to conduct studies on how to prevent these pollutions. The company uses environmentally accepted methods to treat their industrial wastes. For instance, they dispose of their solid wastes by using sanitary landfills, and they have constructed industrial waste treatments.

Benefits of Complying

Failing to comply with the legal and ethical sanctions put in place would mean the company would have to face the law (Lee et al., 2016). These legal proceedings would cost the company a lot of time and money, and they risk also losing their operating licenses which would lead to massive loses. Moreover, it would damage the company's public image which would have an impact on the loyalty of their clients. This would make it difficult to sell their products both in the country and in the international market since international human rights would also highlight such cases. The initiatives of the organization have enabled it to create a good public image, and this has increased its number of clients.

The company has also been able to create good ties with the government as well as the public (Tong, Baslom & Alsharif, 2018). For instance, the company can qualify for tax incentives since it abides by the government's regulations. This has contributed to its organizations' financial ability as well as its productivity, and this has led to growth in the competitive industry in the country. These two factors have also led to its improvement in the stock exchange markets. Its performance in the stock markets means that more people are willing to invest in the company. These investors have a positive impact on the company's profits over the years, and it is expected to improve even more in the coming years. The company has been able to raise capital making it easy to develop the company even better. The investors can see the input of their investments and this makes it easy for them to invest even more money into the company. The company can also motivate their employees by offering them extra incentives by granting them share options and this way the company is likely to achieve its long term goals. The excellent performance also increases the levels of trust among the suppliers as well as the clients, and this is indeed good for the company which becomes even more competitive in the industry.

Sustainable goals of the company have also enabled the company to get some of the best employees to work for them. Employees play a significant role in the development of every organization and working for a company with a vision is also every worker's dream. The company's involvement in strategies to try and improve the environment has made the company to get more qualified employees who want to join the company. These employees have made it easy for the company to run their operations and this has had a positive impact on the growth of the company as well as its services delivery to the people. Moreover, the workers are very likely to be more productive which improves the company in different aspects.


Saudi Aramco uses different strategies to ensure it complies with the government's sustainability agendas. The company has been able to curb air and water pollution, and above all, it has come up with ways to increase energy efficiency. These achievements have been contributed by the company's innovations, employees as well as partnering with other companies. These strategies have enabled the company to become even better and made it more competitive in the industry. Its employees have benefited a lot as well, and their efforts have not played a significant role in the company's success as well. The company's shareholders have also benefited since the company has recorded a high performance in the stock markets. The government input has also been significant to the success of the company just because it complies with these regulations.


Ahmad, I., Rehan, M., Balkhyour, M., Abbas, M., Basahi, J., Almeelbi, T., & Ismail, I. M. (2016). Review of environmental pollution and health risks at motor vehicle repair workshops challenges and perspectives for Saudi Arabia. International Journal of Agricultural and Environmental Research, 2(1), 1-22.

Al Ghamdi, A., & Thomson, T. (2018). The Future of Data Storage: A Case Study with the Saudi Company. Journal of Electrical and Electronic Engineering, 6(1), 1.

Alkhathlan, K., & Javid, M. (2015). Carbon emissions and oil consumption in Saudi Arabia. Renewable and Sustainable Energy Reviews, 48, 105-111.

Alsubaie, M. (2016). The Effectiveness of Corporate Social Responsibility in Saudi Arabia. Global Journal of Human-Social Science Research.

J. H., Kwac, K., Lee, H. J., Lim, S. Y., Jung, D. S., Jung, Y., & Choi, J. W. (2016). Optimal activation of porous carbon for high-performance CO2 capture. ChemNanoMat, 2(6), 528-533.

Samargandi, N. (2017). Sector value addition, technology and CO2 emissions in Saudi Arabia. Renewable and Sustainable Energy Reviews, 78, 868-877.

Tong, S., Baslom, M. M. M., & Alsharif, H. Z. H. (2018). Investigating Volatility in Saudi Arabia Crude Oil Prices and its impact on oil Stock Market. International Journal of Energy Economics and Policy, 8(4), 338-346.

Youssef, M., El-Sorogy, A., Al Kahtany, K., & Al Otiaby, N. (2015). Environmental assessment of coastal surface sediments at Tarut Island, Arabian Gulf (Saudi Arabia). Marine pollution bulletin, 96(1-2), 424-433.

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