ABSTRACT
This chapter is devoted to the role of petroleum in Saudi Arabia is justified simply because petroleum is imperative to the development of the Kingdom. It focuses on Saudi–Aramco relations and the establishment of Petromin. The history of petroleum in the Middle East and the Arab world goes back many centuries during which seepage oils and tar were used for a multitude of purposes. The Saudi–American agreement over petroleum is in a class by itself in terms of its economic magnitude. Petromin’s role is to maximize the usefulness of the Kingdom’s oil, gas and minerals. It is engaged in the production of natural resources, in the exploitation of natural resources, and in the marketing, both domestically and internationally, of these products. During 1959, the existence of a large global petroleum surplus led to the weakening of the international market.
