The Discovery of Oil in Saudi Arabia
The discovery of oil at the Dammam No. 7 well in 1938 transformed Saudi Arabia from a poor desert kingdom into one of the world's leading oil producers.
Overview
Oil was discovered in commercial quantities at the Dammam No. 7 well near Dhahran on 3 March 1938. The discovery transformed the economy of Saudi Arabia and laid the foundation of the modern state.
Background
Exploration began in 1933, when the Kingdom granted a concession to the California Arabian Standard Oil Company, a predecessor of Saudi Aramco. Several early wells were disappointing, and the company considered abandoning the search.
The discovery
On 3 March 1938 the Dammam No. 7 well struck oil at a depth of about 1,440 metres. Further wells confirmed the presence of vast reserves, and production began in earnest.
Significance
The discovery led to the development of the Kingdom's oil industry and made Saudi Arabia one of the world's leading oil producers. Oil revenue funded the rapid modernisation of the country, the expansion of education and health care, and the growth of its cities.
References
- The discovery of oil in Saudi Arabia \u2014 Saudi Aramco (accessed 5 October 2026)
- Oil and the transformation of Arabia \u2014 Encyclopaedia Britannica (accessed 5 October 2026)
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