In the vast sands of the Saudi Arabian desert, a giant slumbers beneath the surface: the Ghawar oil field. This colossus, located in the province of Al-Ahsa, in the east of the country, is the largest conventional oil field in the worldand its history is inseparable from that of Saudi Arabia as a global energy power. Since its discovery in 1948, Ghawar has pumped an impressive amount of crude oil, with figures exceeding 65 billion barrels extracted to date. This astonishing volume represents approximately a third of the entire accumulated production of the kingdom. Although this giant has begun to show signs of fatigue, the advancement of technology is allowing Ghawar to usher in a new revolution. In addition to oil, Aramco has begun extracting tight gas (known as low permeability gas, shale gas or unconventional gas). The site that has produced a good part of Saudi Arabia’s wealth (and fueled the ingenuity to provide water to its inhabitants) never ceases to surprise.
In November last year, Aramco announced it had produced its first unconventional shale gas at the Ghawar South project, producing up to 300 million cubic feet per day of gas. Ghawar’s geological features are as impressive as its production. The deposit sits on Jurassic limestone formations known as the Arab-D reservoir, with exceptional porosity that facilitates the extraction of crude oil. This geological wealth is complemented by advanced extraction techniques, such as water injection, implemented since the 1960s to maintain pressure and prolong the useful life of the deposit.
Thanks to this, Ghawar has been an extremely prolific oil field. It is believed that when it was discovered it held nearly 100 billion barrels of crude oil. In 2024 there would be around 30,000-35,000 million still to be extracted. In addition, it has now been seen that it also has the potential to extract gas, which gives an extra boost to what has been the most important field in the history of Saudi Arabia. It is estimated that up to a third of all the crude oil extracted throughout the kingdom’s history comes from this field. For example, Vaca Muerta, the largest unconventional oil field (Ghawar is conventional) in South America has about 16 billion barrels of crude oil in proven reserves.
Ghawar oil
The magnitude of Ghawar is difficult to conceive. With an extension of 280 kilometers long and up to 36 kilometers wide, it covers an area of more than 8,400 square kilometers. At its peak, in 1981, it produced 5.7 million barrels per day, a historical record never equaled by any other field. Although its current maximum capacity has decreased, standing at 3.8 million barrels per day, According to recent data from Saudi Aramco, Ghawar remains a centerpiece in Saudi energy strategy. To give you an idea, currently (despite not being at its peak), this site could supply the oil demand of three entire ‘Spains’.
The site is divided into six main areas: Fazran, Ain Dar, Shedgum, Uthmaniyah, Hawiyah and Haradh. These regions are home to refineries and processing plants that produce not only oil, but also natural gas. For example, the Uthmaniyah plant is one of the largest in the world in gas processing, while the Hawiyah plant handles 2.6 billion cubic feet of gas per day, which contributes significantly to the energy self-sufficiency of the field itself (it uses gas to cover part of its operating needs) and the country.
Ghawar’s influence on the Saudi economy has been more than notable. Since the fifties, when its exploitation began, This site has been a pillar in the transformation of Saudi Arabia from a kingdom dependent on agriculture to one of the economies with one of the highest per capita incomes in the world, although the truth is that this wealth is poorly distributed. The revenue generated by Ghawar oil has financed infrastructure, education systems and social programs that have modernized the country in less than a century.
However, Ghawar’s age raises questions about his future. Analysts estimate that more than 60% of its initial reserves have already been extractedand although advanced techniques, such as pressurized water injection, have kept their production stable, decline is inevitable. Aramco has implemented systems to extend the life of the field, but the geological and technical challenges increase with each barrel extracted.
The mystery of the site
For years, this site has been a kind of mystery, since Saudi Arabia did not provide precise information about it. However, with the IPO, Aramco had to carry out an exercise in transparency and grant the real production levels of the field. This generated a curious situation, since the US Energy Agency, through American satellites and the information obtained, believed that Ghawar pumped almost 6 million barrels per day every day. However, Aramco had to admit that the amount was much lower and was in the area of 4 million barrels per day in 2019. Even so, Ghawar remained and will continue to be the largest crude oil field in the world by far.
Ghawar’s impact is not limited to the national level. In the geopolitical scenario, this field has consolidated Saudi Arabia as a key player in the Organization of Petroleum Exporting Countries (OPEC) and in global markets. Its ability to adjust Ghawar’s production has allowed it to influence oil prices, generating tensions and strategic alliances in equal measure. Saudi Arabia currently produces about 9 million barrels of oil per daywhich represents around 10% of global production. Although the kingdom has lost weight in the world oil market, its fields continue to be a key player in the world of crude oil, especially considering that Saudi Arabia is the country with the largest idle production capacity in the world. This means that if Riyadh wanted to it could produce about 13 million barrels of oil per day. It does not do so because right now OPEC is immersed in a strategy based on production cuts to keep crude oil prices ‘artificially’ high.
However, the best times for the great Saudi oil field seem to be behind us. Although he still has crude oil for many years, little by little he will lose weight. So while Ghawar is synonymous with abundance, it is also a reminder of the need to diversify energy sources. Dependence on a finite resource poses economic and environmental risks, especially in a global context where renewable energies are gaining prominence. Saudi Arabia, aware of this reality, has launched programs such as Vision 2030 to diversify its economy, but Ghawar remains, for now, the beating heart of its wealth.
“Saudi Arabia seeks to increase its electricity generation capacity to from natural gas and renewable energy sources as part of the country’s Vision 2030. The Saudi Power Procurement Company (SPPC) awarded tenders for four natural gas power plant projects in October 2023 and began receiving bids for four additional projects in January 2024. Each project has 1.8 gigawatts (GW) of capacity additional.
Also, the Saudi government has more than 21 GW of renewable energy projects planned by mid-2024, the majority of which are for solar energy,” they say.to the US EIA in its latest update of the country file from Saudi Arabia. Now, Ghawar is also joining the gas revolution as noted above. In conclusion, the Ghawar oil field is not only a marvel of engineering and nature, but also a symbol of how a resource can shape the identity of a nation. Its legacy transcends the oil that flows from its depths: it is the story of a country that found in its sands a wealth that changed its destiny and that of the world.
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