When people think of the most profitable companies in the world, names like Apple or Google (Alphabet) dominate the conversation. But the title of the world’s most profitable company doesn’t belong to a tech giant—it belongs to Saudi Aramco, the state-owned oil juggernaut from Saudi Arabia.
Aramco’s Unrivaled Profits
Between fiscal years 2016 and 2023, Saudi Aramco generated a staggering $722 billion in profits, more than any other company on the planet. In fact, 2022 was the most profitable year ever reported by any company, with Aramco raking in $159 billion. By comparison, Apple, often seen as a profit-making machine, earned $558 billion during the same period—an impressive figure, but one that pales in comparison to Aramco’s earnings. In 2023, despite a drop in global oil prices and increased capital expenditures, Aramco still posted net earnings of $121.3 billion—that’s more than $332 million per day or over $13 million per hour.
Low Production Costs Fuel High Profits
One of the key reasons for Aramco’s massive profits is its extremely low production costs. While oil giants like ExxonMobil and BP spend significantly more on producing oil, Aramco spends just $5 to $6 per barrel, nearly 10 times lower than production costs in the U.S. Even when global oil prices dip, Aramco continues to make hefty profits, as it can generate revenue at oil prices as low as $10 a barrel.
Currently, oil prices fluctuate between $60 and $100 per barrel, which means Aramco is making a significant profit margin on every barrel sold. This allows the company to maintain its position as the world’s top oil producer while funding Saudi Arabia’s Vision 2030, a plan aimed at diversifying the economy and reducing the kingdom’s reliance on oil revenues.
A Strategic Role in Global Oil Markets
Aramco isn’t just a player in the oil market—it is oil’s central banker. As part of OPEC and its broader alliance OPEC+, Saudi Arabia has the unique ability to swing production, meaning it can ramp up or down oil output to influence global prices. This gives Aramco significant control over the global oil market, a power few other companies or countries possess. Although OPEC represents 30% of global oil production and OPEC+ accounts for 40%, Aramco’s role as the world’s largest oil producer puts it in a league of its own. The ability to quickly adjust production allows Aramco to manipulate prices, something that smaller oil producers cannot do.
Aramco’s History: From U.S. Funding to Saudi Control
Saudi Aramco was established in 1933 after a concession agreement between the Saudi government and the Standard Oil Company of California. The company began commercial oil production in 1938 and rapidly expanded, reaching 500,000 barrels per day by 1949. In 1980, the Saudi government fully nationalized the company, acquiring 100% ownership. Despite its nationalization, Aramco has retained its “am” from its earlier name, Arabian American Oil Co. Today, the company operates with a fully Saudi management team but continues to employ Western experts.
The Future: A Greener Aramco?
While Aramco remains an oil powerhouse, it faces challenges in a world moving towards clean energy. Saudi Arabia’s Vision 2030 plan includes investments in renewable energy and carbon capture technologies, with a goal to reduce the country’s dependence on hydrocarbons.
Aramco is pursuing a net-zero target by 2050, though its strategy focuses on developing solutions like blue hydrogen and carbon capture rather than cutting oil production. The company is also working on a circular carbon economy, aiming to create new uses for hydrocarbons rather than scaling back oil output.
