This Is Energy This Is Aramco - Saudi Aramco
this is energythis is aramcosaudi aramco annual report 2019
A category all our ownSaudi Aramco is the world’slargest integrated oil and gascompany, producing the energyand chemicals that drive globalcommerce and enhance thedaily lives of people aroundthe globe.From our proven upstream capabilities and ourstrategically integrated global downstream network,to our focus on technology and sustainability, we havecreated value that places us in a category all our own.Our behavior is what defines us – as a company,as employees, as people. Everything we do isanchored by our corporate values: excellence,safety, citizenship, integrity and accountability.Reporting period and boundaryThe financial and operational aspects of Saudi Aramco are covered in this Annual Report.The Annual Report covers the period from January 1, 2019 to December 31, 2019 and hasbeen issued in both Arabic and English. In the event of any discrepancy, the Arabic versionshall prevail.The print version of the Annual Report is identical to its PDF counterpart, which is availableon the Company’s website at saudiaramco.com.
contents12345Saudi Aramco6Corporate governance06Chairman’s message08President and CEO’s foreword108 Board of Directors112 Senior Executives10History114 Board structure and composition122019 highlights116 Audit Committee report14Saudi Aramco’s operations118 Risk and HSE Committee report18Business model119 Nomination Committee statement120 Compensation Committee statementBusiness overviewand strategy24Business overview28Market overview29Strategy121 Compensation and other interests124 Governance, risk and compliance7Consolidated financialstatements128 Independent auditor’s report136 Consolidated statement of incomeResults and performance137 Consolidated statement38CFO’s message138 Consolidated balance sheet39Financial performance139 Consolidated ental, socialand governance (ESG)66Sustainability at Saudi Aramco68Governance framework72Environmental stewardship78People and communitiesof comprehensive incomeof changes in equity140 Consolidated statement of cash flows141 Notes to the consolidated financial statements8Additional financialand legal information202 Additional financial information206 Reserves information208 Regulation of the oil and gas industryin the Kingdom212 Additional legal information218 Forecasts and forward-looking statements219 Terms and abbreviationsRisk88Risk management90Risk factors221 Glossary
King Salman bin Abdulaziz Al-SaudThe Custodian of the Two Holy Mosques
His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al-SaudCrown Prince, Deputy Prime Minister and Minister of Defense of the Kingdom of Saudi Arabia
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Saudi Aramco Annual Report 201905saudi aramco060810121418Chairman’s messagePresident and CEO’s forewordHistory2019 highlightsSaudi Aramco’s operationsBusiness model
06saudi aramcochairman’smessageAs the need for energy continues to rise, weseek to be a force for progress and opportunity,not only by providing reliable energy, but also byinvesting in the sustainability of our business andthe world in which we all liveIn 2019 Saudi Aramco made history.During the year, we achieved a numberof major milestones that served to solidifySaudi Aramco’s standing as the world’slargest integrated oil and gas company. Firstand foremost among these milestones wasour initial public offering (IPO) and listing onthe Saudi Stock Exchange (Tadawul), whichprovided eligible investors the first-everopportunity to directly take a stake in ourcompany. Indeed, we are pleased to welcomeall our new investors alongside our majorityshareholder, the Government of Saudi Arabia.We are actively workingtowards providingsustainable and profitablegrowth, and increasedvalue for our shareholdersand customers.”In addition to completing the world’s largestIPO in 2019, we established our presencein the global capital markets througha landmark US 12 billion inauguralinternational bond issuance earlier in theyear, as well as disclosing detailed financial,operational and reserves information for thefirst time in our history. The success of theTadawul listing and the response to ourglobal debt offering were strong votes ofinvestor confidence in Saudi Aramco’s trackrecord and potential for continued growth.Another important milestone specific toSaudi Aramco’s downstream strategy in 2019was the signing of the purchase agreementto acquire a majority equity interest inSaudi Basic Industries Corporation (SABIC).Following the expected closing of thistransaction in the first half of 2020,Saudi Aramco will be a major petrochemicalproducer globally.Operationally, in 2019 Saudi Aramco alsodemonstrated remarkable resilience in theface of unprecedented adversity followingattacks on our facilities at Shaybah, Abqaiqand Khurais. Thankfully, in each of theincidents there were no fatalities and overalloutput was reduced only temporarily due tothe extraordinary efforts of many individuals.Financially, Saudi Aramco once againdelivered solid earnings and strong cashflows through consistent operationalperformance, cost management and fiscaldiscipline.Careful stewardshipIt has been almost nine decades since theKingdom granted an initial concession toexplore for oil across the remote sands of theArabian desert. Over that time, our companyhas built a reputation for both safety andreliability. We are passionate aboutpreserving the environment and are activelyworking towards providing sustainable andprofitable growth, and increased value forour shareholders and customers.Of course, value creation means morethan just dollars generated or dividendsdistributed – it is also measured by thepositive contributions that a company makesto people, to communities and to the worldas a whole. On this count, Saudi Aramcocontinues to excel by prudently managing theKingdom’s reserves while meeting the dailyneeds of its customers around the world.
Saudi Aramco Annual Report 201907Saudi Aramcoannouncesits intention tofloat on TadawulAs the need for energy continues to rise,we seek to be a force for progress andopportunity, not only by providing reliableenergy, but also by investing in the sustainabilityof our business and the world in which weall live. We remain committed to leveragingtechnology and innovation to lower theclimate impact of our industry and its products.We endeavor to strengthen our legacy ofcorporate responsibility and continue tomanage the environmental, social andgovernance (ESG) issues that are importantto our stakeholders and our business.Strong governanceIt was an honor to be appointed to serve asChairman of the Board of Directors (Board)of this great company. I am deeply humbledby the responsibilities of the important roleSaudi Aramco plays as a key contributor tothe Kingdom of Saudi Arabia and its Vision2030, as well as to global growth andprosperity. My promise to all shareholdersis to work closely with my Board colleaguesand with Amin and his entire managementteam to continue to deliver on our strategywhile providing sustainable and growingdividends to our shareholders throughcrude oil price cycles.The strong position of Saudi Aramco today isa testament to the considerable contributionsof my predecessor, H.E. Khalid A. Al-Falih,who led the company through an importanttime of transformation. On behalf of theBoard, I thank Khalid for his dedication andfor his many years of service to Saudi Aramcoand to Saudi Arabia.In 2019, we also welcomed one new Boardmember, H.E. Nabeel M. Al-Amudi, whopreviously served as the Minister of Transportof Saudi Arabia. The wide range and highlevel of experience and expertise that ourdirectors individually bring to the table willbe vital as we continue to pursue our strategyfor the future.Saudi Aramco’s achievements during thepast year would not have been possiblewithout the clear vision and continuedsupport of the Custodian of the Two HolyMosques King Salman bin Abdulaziz Al-Saud,and His Royal Highness Prince Mohammedbin Salman bin Abdulaziz Al-Saud, CrownPrince, Deputy Prime Minister and Ministerof Defense of the Kingdom of Saudi Arabia.Shared successOn behalf of the Board, I want to take thisopportunity to pay tribute to all the menand women of Saudi Aramco – not only now,but throughout its history – whose collectiveperformance and commitment havepropelled our company to the positionit occupies today. I also want to thank allour new shareholders as well as ourlong-standing customers, partners, suppliers,and communities where we operate fortheir confidence in Saudi Aramco and theircontributions to our shared success.H.E. Yasir O. Al-RumayyanChairman of the Board of DirectorsWe achieved a numberof major milestones thatserved to solidify SaudiAramco’s standing as theworld’s largest integratedoil and gas company.”
saudi aramco08president andCEO’s foreword2019 was a year in which the worldwas offered unprecedented insight intowhat this company is made of, the spirit ofour people, and the principles that guide usWhen the definitive history of Saudi Aramcois written, 2019 will be considered exceptionalfor a number of reasons. Through a variety ofcircumstances both planned and unexpected,it was a year in which the world was offeredunprecedented insight into what this companyis made of, the spirit of our people, andthe principles that guide us. And with this,I believe the public gained a powerfulappreciation not only of how we operate,but of what Saudi Aramco means to thefuture of energy.In a year of both testsand triumphs, 2019 mightbest be rememberedas the year the worldcame to better knowSaudi Aramco.”In December, we completed Saudi Aramco’srecord-breaking IPO with the listing of shareson Tadawul. This followed April’s launch ofour first-ever global debt offering, whichattracted significant investor interest. Theresponse to both our IPO and debt offeringcan be seen as a testament to what wehave worked so hard to achieve over nearlynine decades of successful operations.Either event alone would have made fora banner year; together, they representa historic transformation.ResilienceAs Saudi Aramco’s global visibility wasincreasing, the world witnessed powerfulexamples of our importance to the crude oilmarket and the resilience that defines uswhen, first, our Shaybah NGL facility wasattacked in August, and then in Septemberour oil processing facilities at Abqaiq andKhurais were attacked. The damage inflictedby the September strikes resulted in atemporary shutdown of approximately 54%of Saudi Aramco’s crude oil processing capacity,which caused understandable concern inenergy markets. Through an inspiring displayof unity across our workforce, productionwas restored to pre-attack levels within11 days and the impact on the marketsproved negligible. This demonstrated howseriously Saudi Aramco takes its role andresponsibility in meeting market demands.Notwithstanding bearish signals that globaleconomic growth slowed to some degree in2019, global demand for crude oil is expectedto continue growing for years to come, withGDP growth led primarily by non-OECDAsia Pacific. Short-term market uncertainty,swings in commodity prices and unclearenergy policies continue to impact long-terminvestment in new and traditional energysources and production. However, wecontinue to maintain our commitment toinvest in the future and in March 2020 weannounced an increase in crude oil supplybeginning April 1, and subsequentlySaudi Aramco received a directive fromthe Government to increase our maximumsustainable capacity. Indeed, our work tobuild the world’s foremost integrated energyand chemicals company moved forward withresolve, and in significant ways.PreeminenceOur preeminence in upstream remains thecornerstone of our business, positioningSaudi Aramco as not only the world’s leadingcrude oil producer by production volume,but also the lowest cost producer, one of themost reliable crude oil suppliers, and amongthe world’s least carbon intense sourcesof crude oil. In 2019, we entered intoagreements that will increase hydrocarbonproduction capacities at the Berri and Marjanfields. The Marjan program also includesthe construction of a gas plant in the Tanajibarea. Further, the development of our Fadhiligas processing facility is on track to deliveran additional 2.5 bscfd of gas processingcapacity upon completion in 2020. And inFebruary 2020, we received regulatory
Saudi Aramco Annual Report 201909approval for the development of the Jafurahunconventional gas field in the EasternProvince, the largest unconventional gas fieldin the Kingdom to date, which will providevaluable feedstock for the petrochemical andmetallic industries. We expect the field’sproduction to commence in early 2024.GrowthIn the downstream business, Saudi Aramcocontinued to make solid progress towardsits long-term strategic goal of increasing itsglobal gross refining capacity. In addition,in March 2019, Saudi Aramco entered into apurchase agreement to acquire a 70% equitystake in SABIC, which when completed willsee Saudi Aramco’s chemicals businessoperating in more than 50 countries.Elsewhere, we acquired a 17% equity interestin Hyundai Oilbank in South Korea and sawour wholly owned subsidiary Motiva acquire100% interest in Motiva Chemicals LLC(formerly Flint Hills Resources Port ArthurLLC) in the USA. We also continued todevelop Jazan, an integrated petrochemicalrefinery in the Kingdom, and PRefChem,an integrated refinery and petrochemicalscomplex in Malaysia, with both facilitiesexpected to become fully operational in 2020.As we move forward, Saudi Aramcowill continue its commitment to beinga responsible steward of the environment.Having already achieved one of the lowestupstream carbon footprints per unit ofhydrocarbons produced, we continue tosupport the Kingdom’s efforts to achieve theobjectives of the United Nations FrameworkConvention on climate change, the ParisAgreement, the United Nations EnvironmentProgram as well as other climate changemitigation efforts. In 2019, we proudlyendorsed and signed the World Bank’s“Zero Routine Flaring by 2030” initiative.Innovation is an important contributorto our environmental stewardship as wecontinue to deliver new value across ourbusiness through research and developmentinitiatives, which resulted in a record524 U.S. patents being granted.We are also deeply committed to supportingthe Kingdom’s Vision 2030 by buildinga stronger, more diverse and competitiveenergy sector. In 2019, the key measure foriktva, our local supply chain developmentinitiative, continued to show improvementby reaching 56%.In a year of both tests and triumphs, 2019might best be remembered as the year theworld came to better know Saudi Aramco –and what it came to know could not makeme prouder. Our men and women haveexemplified time and again a culture ofresilience, the pride they take in their work,and our total commitment to safely, reliablyand responsibly deliver energy that is buildinga brighter tomorrow. These are qualitiesI have long known and cherished aboutSaudi Aramco, and it is tremendouslyrewarding to see the world gain this insightand share in this appreciation.Amin H. NasserPresident and Chief Executive OfficerWe continue to supportthe Kingdom’s effortsto achieve the objectivesof the United NationsFramework Conventionon climate change, theParis Agreement,the United NationsEnvironment Programas well as other climatechange mitigation efforts.”
saudi aramco10historyOur history dates back more than85 years, when a small group of intrepidadventurers set out to explore the desertsof Saudi Arabia1933-19441945-1965The birthof Arabian oilExpansion1933Oil concession agreement signedwith Standard Oil of Californiawho creates the CaliforniaArabian Standard Oil Company(CASOC) to manage theconcession1948Standard Oil Company of NewJersey, later Exxon, purchases30% of Aramco, and SoconyVacuum Oil Company, laterMobil, purchases 10% to helpprovide market outlets1938Oil discovered at Dammam WellNo. 71949Oil production hits 500 mbpd19521939Oil exports beginAramco headquarters movedfrom New York City to Dhahran1944CASOC renamed the ArabianAmerican Oil Company (Aramco)1958Oil production exceeds1 mmbpd1965Oil production exceeds2 mmbpd
Saudi Aramco Annual Report 201911Dhahran 19361966-19881989-2014Making a namefor ourselves2015-2019A global companyTransformation1971Oil production averages4.5 mmbpd1989First international downstreamjoint venture, in U.S.2017Saudi Aramco acquires fullownership of Motiva1973The Saudi Government acquiresan initial 25% participatinginterest in the concession, whichincreases to 60% the followingyear1991First downstream venture in Asia,in South Korea2018Saudi Aramco becomes a jointstock company1993Saudi Aramco assumes the assetsand operations of Saudi ArabianMarketing and Refining Company,a Government-owned in-Kingdomrefining and international productmarketing organization1976Aramco becomes the world’sleading oil producer in terms ofvolume produced in a single year19801981Saudi Government increases itsparticipation interest in Aramco’scrude oil concession rights,production and facilities to 100%1988Saudi Aramco officiallyestablished2009Petro Rabigh, Saudi Aramco’sfirst petrochemical plant, beginsproduction2011Sadara Chemical Company formed2014SATORP and YASREF refineriescome onlineSaudi Aramco acquires fullownership of ARLANXEO2019Saudi Aramco enters into apurchase agreement to acquirea 70% equity interest in SABICSaudi Aramco issues 12.0 billionof Senior Unsecured Notes listedon the London Stock ExchangeSaudi Aramco becomes a publiccompany with shares listed onTadawul
saudi aramco122019highlightsOur work to build the world’s foremostintegrated energy and chemicals companymoved forward in 2019 with resolve, andin significant waysFebruaryMarchSaudi Aramco signs agreementto form the largest Sino-foreignjoint venture with NORINCOand Panjin Sincen in ChinaSaudi Aramco showcasesinnovative engine technologies atGeneva International Motor ShowSaudi Aramco signs agreementsto acquire stake in ZhejiangIntegrated Refining &Petrochemical ComplexSaudi Aramco signs purchaseagreement to acquire a 70%equity stake in SABIC from thePublic Investment Fund ofSaudi Arabia (PIF)AugustSeptemberSaudi Aramco publicly reportsfirst-ever half-year financial results,with net income of 46.9 billionH.E. Yasir Othman Al-Rumayyannamed Chairman of the BoardNew Aramco Singapore officemarks regional downstreamexpansion and integrationFollowing the September 14attacks on Abqaiq and Khuraisplants, Saudi Aramco restoresproduction to pre-attack outputon September 25Saudi Aramco completes theacquisition of the remaining 50%equity interest in the SASREFrefining joint venture, from Shell
Saudi Aramco Annual Report 201913Saudi Aramcogoes publicAprilJuneJulySaudi Aramco issues 12.0 billionof Senior Unsecured Notes listedon the London Stock ExchangeAramco Trading Company opensFujairah office in UAESaudi Aramco awards contractsvalued at 18 billion to increaseMarjan and Berri oilfields’production capacity by 550 mbpdand 2.5 bscfd of gasAramco Trading signs SupplyAgreement with “PKN Orlen”,Poland’s leading oil refiner,enhancing downstreamintegration in EuropeSaudi Aramco and Air Productsinaugurate Saudi Arabia’s firsthydrogen fueling stationSaudi Aramco inaugurates newcomplex with S-Oil in Ulsan,South Korea, advancing its globalchemicals strategySaudi Aramco acquires a networkof 270 service stations and afuel tanker fleet in Saudi Arabiathrough a joint venture with TotalOctoberNovemberDecemberMotiva, a wholly ownedsubsidiary, acquires a 100% equityinterest in Motiva Chemicals LLC(formerly Flint Hills), a chemicalplant in Port Arthur, TexasSaudi Aramco announcesintention to floatSaudi Aramco lists on TadawulSaudi Aramco joins World Bank’s“Zero Routine Flaring by 2030”initiativeSaudi Aramco acquires a 17%equity interest in Hyundai Oilbankin South Korea
14saudi aramcosaudi aramco’soperationsSaudi Aramco’s operations span theKingdom of Saudi Arabia and the globeSaudi Aramco headquartersOffice of subsidiary1R&D center/technology officeRefining and petrochemical facilityShipping terminals and strategic delivery pointsRetail fuels networkCrude oil and natural gas productionEurope & Africa1. Aberdeen2. Ain Sukhna3. Baku4. The Hague,United StatesDelft andRotterdam1. Boston5. London2. Detroit6. Milan3. Houston7. Moscow4. New York City8. Paris5. Washington, D.C.1.Maastricht,Subsidiaries are separate legal entities from the Company.
Saudi ArabiaWe operate upstream oil and gasproduction, processing plants,refining and petrochemical facilities,power generation, and distributionfacilities, including pipelines, theMaster Gas System (MGS) andshipping terminals, throughoutthe Kingdom of Saudi Arabia.1. Dhahran2. Duba3. Jazan4. Jiddah5. Ju’aymah6. Jubail7. Thuwal8. Ras Tanura9. Riyadh10. Rabigh11. Yanbu’Asia1. Beijing2. Daejeon3. Fujairah4. Fujian5. Johor6. Kuala Lumpur7. New Delhi8. Okinawa9. SeoulSeosan10. Shanghai11. Singapore12. Tokyo13. XiamenSaudi Aramco Annual Report 201915
business overview and strategy16Saudi Aramco’s visionSaudi Aramco’s vision is to be theworld’s preeminent integratedenergy and chemicals company,operating in a safe, sustainableand reliable mannerSaudi Aramco’s missionSaudi Aramco strives to provide its shareholderswith resilient value creation through crude oilprice cycles by maintaining its preeminence inoil and gas production, capturing additionalvalue across the hydrocarbon value chainand profitably growing its portfolio.
Saudi Aramco’s valuesExcellenceAt Saudi Aramco, excellence translates intoall aspects of our workplace. It is our personaland group commitment to doing what wedo well. We drive for best results and areagile in addressing new challenges.As a business, we drive excellence bysetting challenging goals, rewarding topperformance, committing ourselves todeveloping our people, encouraginginnovation, creativity and diversity ofthought, and fostering teamwork andopen communication.SafetySafety is an integral part of Saudi Aramco’sculture. We are committed to providinga safe and respectful working environmentfor all with the appropriate safety proceduresand policies in place on-site and withinthe community.IntegrityThe integrity of business at Saudi Aramcois based on the ethical standards of ouremployees in our everyday operations.Integrity is a precious asset, it is our reputation.The foundation of corporate integrity ispersonal integrity.We define safety as protecting ourselves,protecting others and protecting our future.We treat people with fairness and respect,we embrace diversity and accept differencesand we do not tolerate misconduct.CitizenshipNo matter where in the world we areconducting business, it is important to beknown as a good corporate citizen and tobe a positive influence within communities.As a global company in Saudi Arabia, wetake this role seriously.We define citizenship as acting as a catalystfor economic growth, demonstrating socialresponsibility, supporting our communitiesand serving as role models in building solidrelationships with our customers and partners.AccountabilityAccountability means all employees atSaudi Aramco take responsibility for theiractions in meeting corporate objectives.Accountability for achieving Saudi Aramco’soverarching business objectives starts withthe goals and objectives outlined by thePresident & CEO for its business lines, andpervades through Saudi Aramco.Our employees place authority whereresponsibility lies, deliver on commitmentsand seek and provide constructive feedback.Saudi Aramco Annual Report 201917
18business overview and strategyBusiness modelOur resourcesWhat we doSaudi Aramco’s conventional proved reservesand crude oil production are unrivalled.Through the utilization of a skilled workforceoperating in a safe and reliable manner andleveraging technology, Saudi Aramco sustainsits low cost and low carbon intensity crudeoil production.UpstreamSaudi Aramco is the world’slargest producer of crude oiland condensate. We managethe Kingdom’s unique reservesand resource base to optimizeproduction and maximizelong-term value.See page 46 for more detail.Total 2019 hydrocarbonreservesTotal 2019 crude oil andcondensate reserves(billion boe)(billion barrels)258.6Employees179,000201.9Lost Time Injury Rate2(LTI)(per 200,000 man-hours)0.016DownstreamSaudi Aramco has a large,strategically integrated globaldownstream business. OurDownstream segment activitiesconsist primarily of refining andpetrochemical manufacturing,supply and trading, distributionand power generation.See page 54 for more detail.Research centersGranted U.S. patents312524Upstream and DownstreamintegrationThe strategic integration of our Upstream andDownstream segments enables us to secure crudeoil demand by selling to a dedicated system ofdomestic and international wholly owned andaffiliated refineries.1.2.3.The Company and its wholly owned subsidiaries.In-Kingdom wholly owned operated assets.The Company and its subsidiaries ARLANXEO and Motiva.
How Saudi Aramco adds value across the production lifecycleExplore and produceRefine and manufactureSaudi Aramco manages the Kingdom’s uniquehydrocarbon reserves base, optimizing productionand maximizing long-term value.Saudi Aramco operates a strategically integratedglobal downstream business. Saudi Aramco’sdownstream activities consist primarily of refiningand petrochemical manufacturing. Other activitiesinclude base oils, lubricants and power generation.Maximum SustainableCapacity (MSC)Upstream lifting costper boeGross refiningcapacityGross chemicalproduction capacity(mmbpd)( /boe)(mmbpd)(million tonnes per year)12.02.86.446.1Underpinned by our culture, values,Saudi Aramco Annual Report 201919
business overview and strategy20DistributeSaudi Aramco delivers upstream production to a high-quality externalcustomer base and a dedicated downstream system. Saudi Aramcoalso provides high-value products to the Kingdom and internationallyin large and high-growth markets, through its supply and trading,distribution and retail operations.Reliability4Crude exports(%)(mmbpd)99.24.The Company.risk approach, strong governance and ethics7.1
Saudi Aramco Annual Report 201921Value we createSaudi Aramco strives to create value across thehydrocarbon chain. Our energy and chemicalsproduction drives commerce and enhances thedaily lives of people around the globe.FinancialAverage realizedcrude oil priceNet incomeEBIT*(billion)(billion)( /barrel)64.6SARSAR 88 178Free cash bon productionCrude oil production5Total traded volumes(mmboed)(mmbpd)(mmbpd)13.29.94.5Upstream carbonintensity6Flaring intensity6(kg of CO2e/boe)5.54294SAR 78Shareholder331667Dividend paid(billion)274SAR RS measure: refer to Section 3: Results and performance.Includes blended condensate and excludes the Kingdom of Bahrain‘s entitlement to volumes produced from the Abu Sa’fah field.In-Kingdom wholly owned operated assets.
business overview and strategy22
Saudi Aramco Annual Report 201923business overviewand strategy242829Business overviewMarket overviewStrategy
business overview and strategy24business overviewSaudi Aramco is the world’s largestintegrated oil and gas company
Overview of Saudi AramcoSaudi Aramco is the world’s largestintegrated oil and gas company. Its primaryoperating segments are the Upstreamsegment and the Downstream segment,which are supported by corporate activities.Saudi Aramco’s upstream operations arebased in the Kingdom while the downstreambusiness is global.In 2019, Saudi Aramco produced13.2 mmboed of hydrocarbons, including9.9 mmbpd of crude oil (including blendedcondensate, and excluding the Kingdom ofBahrain’s share of volumes produced fromthe Abu Sa’fah field). As at December 31,2019, based on the initial 40-year period and20-year extension of the Concession, SaudiAramco’s reserves stood at 258.6 billion boe,including 201.9 billion barrels of crude oil andcondensate, 25.7 billion barrels of NGLs and190.6 tscf of natural gas. In addition, as atDecember 31, 2019, Saudi Aramco had agross refining capacity of 6.4 mmbpd andnet refining capacity of 3.6 mmbpd.Saudi Aramco managesthe Kingdom’s uniquereserves and resourcesbase to optimizeproduction and maximizelong-term valueSaudi Aramco Annual Report 201925
26business overview and strategyUpstreamThe Upstream segment’s activities consistof exploring for, developing and producingcrude oil, condensate, natural gas and NGLs.Saudi Aramco manages the Kingdom’sunique reserves and resource base tooptimize production and maximize long-termvalue pursuant to the Hydrocarbons Law,which mandates that Saudi Aramco’shydrocarbon operations promote long-termproductivity of the Kingdom’s reservoirsand support the prudent stewardship of itshydrocarbon resources.13.2mmboedHydrocarbon production, includingcrude oil production of 9.9 mmbpdThe spare capacity affordedby maintaining MSCenables Saudi Aramcoto increase its crude oilproduction above plannedlevels rapidly in response tochanges in global crude oilsupply and demandSaudi Aramco’s principal fields are locatedin close proximity to each other withinthe Central and Eastern Provinces of theKingdom. An extensive pipeline networkconnects Saudi Aramco’s fields, processingplants and other facilities. The crude oil,condensate, natural gas and NGLs producedtravel through Saudi Aramco’s pipelines tomultiple facilities for processing into refinedproducts or to domestic customers or exportterminals. In particular, Saudi Aramco’sEast-West pipeline is critical in linking oilproduction facilities in the Eastern Provincewith Yanbu’ on the west coast, and providingflexibility to export from the east and westcoasts of the Kingdom.Shaybah plantThe Government determines the Kingdom’smaximum level of crude oil production inthe
contents Saudi Aramco 06 Chairman's message 08 President and CEO's foreword 10 History 12 2019 highlights 14 Saudi Aramco's operations 18 Business model Business overview and strategy 24 Business overview 28 Market overview 29 Strategy Results and performance 38 CFO's message 39 Financial performance 46 Upstream 54 Downstream 62 Corporate Environmental, social and governance (ESG)
on work, power and energy]. (iv)Different types of energy (e.g., chemical energy, Mechanical energy, heat energy, electrical energy, nuclear energy, sound energy, light energy). Mechanical energy: potential energy U mgh (derivation included ) gravitational PE, examples; kinetic energy
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Forms of energy include radiant energy from the sun, chemical energy from the food you eat, and electrical energy from the outlets in your home. All these forms of energy may be used or stored. Energy that is stored is called potential energy. Energy that is being used for motion is called kinetic energy. All types of energy are measured in joules.
reduces Kinetic Energy and increase Potential Energy A: The energy is stored as potential energy. PE is like your saving account. Potential energy gain (mg h) during the rising part. We can get that energy back as kinetic E if the ball falls back off. During falling, Kinetic Energy will increase mg h. Potential energy will reduce mg h.
Energy is often defined as the ability to do work. Pair up and list as many forms of energy as you can. Electrical. Chemical. Nuclear. Magnetic. Elastic. Sound. Gravitational energy. Kinetic energy (energy of motion). Thermal energy (heat energy). Potential energy. Potential energy
kinetic energy and potential energy as the ball moves. The bars in the figure show that the ball's total energy does not change. The Law of Conservation of Energy The total energy in the universe is the sum of all the different forms of energy everywhere. According to the law of conservation of energy, energy can be transformed from one
changes to thermal energy. Thermal energy causes the lamp's bulb to become warm to the touch. Using Thermal Energy All forms of energy can be changed into thermal energy. Recall that thermal energy is the energy due to the motion of particles that make up an object. People often use thermal energy to provide warmth or cook food. An electric space
32 Renewable Energy 33 References To learn more about DOE programs in energy efficiency and renewable energy, visit the Office of Energy Efficiency and Renewable Energy's web site at www.eere.energy.gov "High energy costs can really pinch American families. While the Department of Energy is working hard to develop new technologies to
