Dim Sum 09

Summer 2009 A periodical of Saudi Aramco

Travel Dimensi ns

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t the picturesque fishing village of al-Qurm in north Muscat, Oman, it would appear, from this photo, that overfishing is likely a major problem, with a large number of boats casting their nets and lures into a very small pond. However, appearances can be deceiving. In fact, this photograph, shot in the mid-afternoon light by Saudi Aramco consulting engineer Graham R. Lobley was taken at low tide. In early evening, the fishermen went out to sea after the water level rose, Lobley explained. He shot the picture >> Submit unique or visually arresting while relaxing at a clifftop hotel that offered panoramic views of the travel photos to Dimensions magazine city, the mountains beyond and a mangrove creek network that has as high-resolution digital images (at least 300 dots per inch). E-mail images been designated as a national park. He used a Canon 400D camera less than 9 megabytes to richard. [email protected]. with a wide-angle lens, in both JPEG and RAW formats. ■

Summer 2009

Weather has always been a Saudi Aramco concern, such as in 1947-48 when two company vehicles got stuck in rain-caused mud on the Dhahran-Ras Tanura road (above). See story and photos starting on Page 20.

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Back Cover

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2 Twin of Aramco’s first plane takes off 12 Geologists are No. 1: These specialists really rock 20 Weather: Making peace with Mother Nature 30 News Dimensions: Al-Falih urges common sense Inside Back Cover The Way We Were: Water is life Back Cover Scrapbook: Joy of candy

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Inside Back Cover

About the cover: As an enormous wall of dust approached Saudi Aramco’s ‘Udhailiyah community in Saudi Arabia’s Eastern Province on March 10 this year, company engineer Doug Horn and his wife, Daphne Hope, rushed with their camera equipment to a good vantage point to photograph the phenomenon. Horn, who works in Exploration and Producing, said the looming dust storm reminded him of a giant sand-storm in the movie “Return of the Mummy.” Horn said it took 38 minutes for the “swirling cloud of sand” to engulf the entire community. Because unexpected weather events can wreak havoc on Saudi Aramco operations and pose hazards to people, the company closely tracks the weather and actively plans for emergency response. About the back cover: Any time a child finds candy is a moment of joy and wonder. Saudi Aramco employee Atheer Al-Sadah snapped a charming photograph of his niece in just such a moment, and the effect is wondrous.

The Saudi Arabian Oil Company, also known as Saudi Aramco, was established by Royal Decree in November 1988 to succeed the original U.S. concessionary company, Aramco. The Aramco concession dates back to 1933.

Saudi Aramco Dimensions is published periodically for the affiliates, customers and employees of the Saudi Arabian Oil Company (Saudi Aramco).

Beginning in 1973, under terms of an agreement with the four Aramco shareholders, the Saudi Government began acquiring an ownership interest. By 1980, with retroactive financial effect to 1976, the Government’s beneficial interest in Aramco increased to 100 percent when it paid for substantially all of Aramco’s assets.

Khaled A. Al-Buraik Vice President, Saudi Aramco Affairs

Saudi Arabia’s Supreme Council for Petroleum and Mineral Affairs determines policies and oversees operations of the Kingdom’s oil and gas industries. Saudi Aramco’s Board of Directors is chaired by HE Ali I. Al-Naimi, Minister of Petroleum and Mineral Resources.

Khalid A. Al-Falih President and Chief Executive Officer

Emad M. Al-Dughaither Manager (A), Public Relations Department Editor: Rick Snedeker Contributing to this issue: Graham R. Lobley, Margot Rawlings, Atheer Al-Sadah, Larry Siegel, Douglas J. Horn, Mark Kennedy and Rick Snedeker

Design: Herring Design, Houston, Texas, U.S.A. Printing: Sarawat Designers and Printers, Jiddah, Saudi Arabia All editorial correspondence should be addressed to: The Editor, Saudi Aramco Dimensions Public Relations Department, Saudi Aramco Box 5000 Dhahran 31311 Saudi Arabia ISSN 1319-0520 Copyright © 2009 Aramco Services Company SUMMER 2009 Printed on recycled paper www.saudiaramco.com

Last Fairchild The

Twin of historic Aramco plane flies into wild blue yonder BY MARK KENNEDY

rvey Field Alice Ady at Ha At left: Jack and ohomish, Sn their home in airfield next to . es at St d ite the Un Washington, in Fairchild 71. 29 19 y’s Ad ck Above inset: Ja

DHAHRAN — I called the number I had for the United States, and a woman answered the phone. I told her I was trying to reach Jack Ady. “He’s my husband. May I ask who’s calling?” “This is Mark Kennedy with Saudi Aramco Public Relations Department. I’m calling from Saudi Arabia.” There was a moment of silence. “Saudi Arabia … Goodness gracious,” she said. “Let me get him. He’s just in the other room.” I heard the phone being jostled. Soon it was picked up and a soft, gravelly voice came through the earpiece. “Hello, this is Jack.” I explained who I was and that I had heard he was selling a 1929 Fairchild 71 airplane. I asked if he still had the plane. “Yeah, I still have it. It’s been sitting in my barn for almost twenty years. I took it out for the first

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At left: The Fairchild’s crew in 1935, from left, Joe Mountain, pilot; Dick Kerr, navigator/ geologist; and Russ Gerow, camera and mechanic. Mountain and Gerow arrived in the fall of 1934, at the start of the second field season. This photo was shot by famed geologist Max Steineke. Kerr later become a full-time Aramco employee.

Fairchild 71 Spec ifications

time in I don’t know how long and cleaned it up a bit for the picture you may have seen in the advertisement.” It was January, 2008. The weather in Dhahran was a little cool, but beautiful. I knew it was near freezing and wet where Jack Ady lived in Snohomish, Washington, because I used to live not far from there. I would learn later that Jack and his wife lived in a farm house on the edge of Harvey Field, the local airstrip, which suited Jack’s passion for flying. I could picture Jack and his wife all snug and warm in their house while rain slashed against the windows. I had been given the assignment of locating an existing Fairchild 71 like the one the company had specially built and shipped to Egypt and then flown to Saudi Arabia in 1934. The plane — the company’s first — was a critical tool for conducting aerial surveys of the newly acquired concession area during the 1934-35 field season. Seventy-five years later, in 2008, only four 1929 Fairchild 71s were still registered with the Federal Aviation Administration (FAA) in the U.S. Of those four, only one was owned by a private individual — and I had him on the phone. Better yet, the plane was still for sale. “Jack, do you mind if I ask you a few questions about your airplane?”

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GENER Type: 5-8 seat A L utility aircraft Manufacturer: Fairchild Aircra Farmingdale, Long Island, N ft Co., United States ew York, Date: 1929 Number Built: 90 Cost: $18,90 0.00 (S price of $6,500 ocal paid a liquidation plus accessor ies) P OW E R P L A N T Pratt & Whitn ey Wasp 420horsepower, 9-cylinder, air-c ooled radial en gine DIMENSIONS Length: 33 fe et, 2 inches Height: 9 feet , 6 inches Wingspan: 50 feet WEIGHTS AND C A PA C I T I E S Empty Weight: 2,732 pounds Useful Load: 2,768 pounds Maximum Gross Weight: 5,500 pounds Fuel Capacity : 148 gallons Oil Capacity: 12 gallons PERFORMANC E Maximum Spee d: 134 mph Cruise Speed: 108 mph Landing Spee d: 55 mph Rate of Climb: 875 fpm at se a level Service Ceiling : 15,000 feet Cruising Radi us (the maxim um distance th aircraft can tr at an avel away from and back to its point of origin without refuel ing): 325 mile s

Above: The Fairchild is transported by boat, date and destination unknown. Above right: Dammam Well No. 1 stands sentinel in the desert. Right: From left, Charles Rocheville and Robert P. “Bert” Miller pose in front of the Fairchild, “their pet and darling,” 1934.

The beginning

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n 2008, Saudi Aramco celebrated the 75th anniversary of the signing of the historic concession agreement between Standard Oil Company of California (Socal) and the Saudi Arabian government. The signing of that agreement launched the formation of the company and the discovery of massive crude oil reserves previously unimaginable. There were many ideas about how to mark the anniversary of the concession signing. One thought that emerged from brainstorming sessions was to purchase an existing 1929 Fairchild 71 and completely restore it, providing the company with an exact replica of the original that could be put on display. It was my job to see if I could find one that wasn’t already part of a museum collection elsewhere. Walk down the corridors of any Saudi Aramco office building and you are bound to encounter a framed photo of the company’s Fairchild 71 hanging on one of the walls.

There was one in my building, in fact, and the times I walked by it I couldn’t help slowing as my eyes lingered on the black-and-white image for a moment before passing on. The photos tug at you. So I understood the desire to bring it back somehow. And now that I was actively searching for its twin, I wanted to know more about the Fairchild 71.

Chasing a mirage

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n a darkened editing room at the Saudi Aramco Media Production Unit, Sean Reid, a company film director and script writer, queued up the video he was working on. He entered a few keystrokes on the computer and the large Sony monitor lit up with 70 year-old grainy, slightly staccato, black-and-white images of the Saudi Arabian desert and the original Fairchild 71.

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Left: Camels were used to transport supplies to remote field camps. When the Fairchild arrived, below, it often did double duty transporting men and supplies in and out of the desert locations.

The film seemed from another time entirely, helped by the subtle, whirring clack-clack-clackclack sound of a reel-to-reel film projector that Sean had added to the soundtrack. Sean was creating a series of historical videos that included archival footage of the Fairchild 71. As a pilot himself, Sean had a personal appreciation for these old bits of film. We sat and watched what he had assembled. It was great stuff, giving the viewer a few tantalizing glimpses into a time just far enough into the past that it still seemed familiar, yet completely removed from our own. Making the scenes particularly haunting was that they contained glimpses not only of the Fairchild but the legendary men who flew it. There, on the screen, were Dick Kerr, Joe Mountain and Russ Gerow, young men in their 30s who flew and maintained the plane and took several thousand photographs from its special window, as they “walked” the plane out of a makeshift hangar in Jubail and prepared it for take-off. In another scene, the plane made a landing at the field camp of geologists Schuyler B. “Krug” Henry and Arthur Brown, who, playing to the camera, boyishly wrestled each other into the sand. This footage offered a rare look at the plane and the people as they were in 1935, so young and vital and ready for adventure, which only increased the sense of the inescapable void of time and space, and the knowledge that they are now forever beyond our reach.

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Inspired by the film, I visited the company’s Photography Unit, where I asked to see all the pictures of the plane in the collection of historic still photos. Shots of its fragile structure pitched against a backdrop of open, dune-covered desert, tend to evoke a visceral sentimentality, a certain wistfulness for those early days of discovery. But there were surprisingly few photos. When I asked if there were any more, I was told that they had given me everything they had. I looked at the dates of the photos. They were all from 1934 and 1935. After 1935, the photographic record abruptly stops; there are no more pictures of the Fairchild. Hmmm. I checked the company archives. There are documents relating to the purchase of the plane. There are documents requesting and receiving government approval to use the

Above: This 1935 photo of the Fairchild and a Saudi man performing sunset prayers in the desert near El-Hafar was used as the basis for the illustrated cover, right, of the Standard Oil Bulletin, published in September 1936 (Image copyrighted by Chevron Corp. and used with permission.). This edition of the Bulletin carried an article on Standard Oil Co.’s Saudi Arabian oil exploration efforts.

plane for company business in the concession area. There are several extensions of those approvals. But there are no documents concerning the boxy, modestly appointed plane’s final disposition. Regarding what ultimately became of the Fairchild, the archives are eerily silent. It seemed odd that a company asset like the Fairchild would, after 1935, just vanish from the record. I found it strange because for a brief but crucial period between 1934 and 1935, the search for oil in the Kingdom of Saudi

Arabia was sped forward exponentially by the use of that little workhorse of a plane. The specially modified aircraft and its pilots, Kerr and Mountain, were once central characters in the cast of early Aramco pioneers that included other names that reach out from the dust of Saudi Aramco history, names that possess a timeless, almost mythic quality, such as: Max Steineke,

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Bert Miller, Krug Henry, Khamis bin Rimthan, J.W. “Soak” Hoover and Tom Barger. These were the right men at the right place at the right time with the right stuff. They presided over pivotal moments that helped propel the Kingdom into prosperity, modernity and global influence. And without the Fairchild 71, it would have taken many more years to decipher the geology of the Eastern Province. I spent a few more months looking into the matter. I got in touch with the archivist at Chevron, who now manages the old records of the California Arabian Standard Oil Co. (Casoc), Aramco’s second incarnation. Nothing. I even contacted Nestor John Sander in the United States. Sander, who at 94 is the oldest living former company employee, actually knew and worked with Dick Kerr. Though still incredibly lucid, he had no knowledge of what happened to the plane. Trying to find out what happened to the company’s Fairchild was beginning to feel a bit like chasing a mirage.

“… their pet and darling …”

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n his book Discovery!, about the early days of Aramco, Wallace Stegner wrote that, by 1935, “Some of the fun had gone. The Fairchild, once their pet and darling, was folded up and stuffed in a shed, no longer needed. Its motor, packed in a crate labeled A-1, was shipped off to the United States for rebuilding, the first thing ever exported from the al-Khobar pier.” This is confirmed in a company letter from Lloyd Hamilton to Bill Lenahan, dated Nov. 23, 1935. It states, “I have just learned in a recent conference in San Francisco it was decided on account of the already advanced geological field season not to send a pilot to Saudi Arabia at the present time. There is a probability, however, that the plane will be used during the season of 1936/37. Meanwhile the plane is to be stored in a hangar to reduce deterioration to a minimum.” But the Fairchild was never used again. And its fate after 1935 is shrouded in mystery. Speculation about its final days in the company’s service ranges from deterioration in a Casoc reclamation yard to a few more years of service for another company somewhere in Sudan. It seems certain that the plane Left: Russ Gerow prepares to pull the Fairchild out of its hangar in Jubail. Below right: Improvising in the field, a truck bed is used as a tool box and a step ladder, providing Gerow access to the Fairchild’s motor for a bit of servicing. Below left: Gerow’s U.S. mechanic’s licence in 1938.

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Simple plane, lution high-tech so

oday, Saudi Aramco uses highly sophisticated technology to explore for petroleum, manage reservoirs, operate facilities and execute projects of colossal proportions. In 1934 and 1935, the Fairchild 71 was a high-tech solution to the massive challenge of the day – photographing, surveying and exploring a concession area covering 320,000 square miles. The Concession Agreement was signed on May 29, 1933. Article 3 of the subsequent Letter Agreement, was ultimately modified to allow the use of a plane for aerial reconnaissance of the concession area. By September, Socal had entered into a contract with Continental Air Map Co. to perform the work. The contract covered the period from March 1934 to June 1935. Dick Kerr, the Continental Air Map Co.’s general manager and representative to lead the team in Saudi Arabia, chose to purchase a 1929 Fairchild 71 for several reasons: it was small and light; it was reliable; its wings folded back on top of the fuselage, making it easy to store and transport; it was designed with aerial photography in mind by the same person who invented the Fairchild K-4 aerial camera that was used in conjunction with the plane. Kerr had a pretty good idea of what the job would require. He and his original co-pilot and mechanic, Charles Rocheville, requested a few modifications to the plane’s original specs: special 24- by 18-inch balloon tires (inflated to 16 pounds per square inch) for operating in deep sand; a larger fuel tank that added an additional 175 miles to its cruising radius for a max of 500 (but reduced seating from 8 to 4); and a hatch in the floor of the fuselage for taking vertical photographs, plus removable side windows from which oblique photos could be taken. The plane was built at Fairchild’s Kreider-Reisner Aircraft Division at Hagerstown, Maryland. And on Feb. 5, 1934, a dark blue and orange 1929 Fairchild 71 with U.S. Department of Commerce number

NC13902, serial number 801, emerged from the factory into the eager hands of Kerr and Rocheville. They had just enough time to take it up for a quick test flight before the real adventure began. Though it was a good plane, only 90 Fairchild 71s were manufactured, making it rare enough that, today, just finding one to potentially purchase for the company proved quite difficult. Of course, being rare is what makes the remaining

Above: The impressive Fairchild K-4 aerial camera. Left: Several thousand photos were taken from the Fairchild, whose shadow crosses the desert floor in this image shot from the plane.

Fairchild 71s so special to collectors of antique aircraft. But even back in 1934, there was the sense that the company’s Fairchild 71 was special. It was just a simple plane, but it was more than that, too. It represented unlimited possibility. And for those of us who today belong to the enterprise that is Saudi Aramco, we can see photographs of the Fairchild 71 and be reminded of a time when one person could make a difference, of a time when there was still a sense of mystery and anticipation about what the land might reveal — which, after all these years, is still the reason we get up and go to work.

Above: Jack used his Fairchild as a skydiving plane for a year before he and Alice began restoring it.

was transported to Dhahran when the company’s geological operations were moved there from Jubail. But for all anyone really knows, it could still be parked in its makeshift hangar in Jubail. What I ultimately discovered is that today nothing remains of the Fairchild 71 except a handful of written references, some photos and about five minutes of archival footage. But what does remain is a strong sense of nostalgia for that antique plane and the bygone era of Aramco’s golden age of exploration.

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Value and meaning for generations

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spoke with Jack Ady several times about his Fairchild. And although I could tell it was hard for him to talk about selling his plane, Jack was a good sport and answered all of my questions with humor and enthusiasm. He felt good about the possibility that his plane might be purchased and restored by a company for which it would have value and meaning for generations to come. Jack told me that in his younger days, he was a pilot and a sky diver. In 1964, he won the national sky diving

Left: Jack and Alice Ady ultimately sold their beloved Fairchild 71 to an aircraft museum owner in Port Townsend, Washington. But they still enjoy the company of fellow pilots at Harvey Field. Below: Jack and Alice’s Fairchild after they completed the restoration work.

championships, and he did it jumping out of a 1929 Fairchild 71. That was the day he fell in love with that particular Fairchild. In 1973, the plane came up for sale and Jack had to have it. So, he scraped together the money and bought it. Jack continued to use the Fairchild as a skydiving plane and operated a little skydiving business with it out of Harvey Field next to his house. A year later, he quit the business, and he and his wife, Alice, set about restoring the plane to the best of their ability. Jack flew the plane for his own personal enjoyment until age got the best of him and he packed it away in his barn. As Saudi Aramco’s 75th Anniversary planning progressed, it eventually was decided to mark the milestone in other ways, including a Grand Celebration event in May 2008. That event was made even more memorable by the presence of Custodian of the Two Holy Mosques King Abdullah ibn ’Abd al-’Aziz Al Saud, whose visit reprised a historic 1939 visit to the Eastern Province by his father, King ’Abd al-Aziz.

Quite a sight

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n Jan. 1, a new year began. The company’s 75th anniversary had successfully come and gone. But I still thought about Jack and his Fairchild 71. And I still thought about the mystery of the company’s Fairchild. It occurred to me that, whatever the fate of Jack Ady’s rare plane, how we managed to find the last available Fairchild would still make a good story.

The editor of this publication agreed, and I got the green light to write a story and contact Jack to see if he had any photos of the plane possibly gathering dust in his attic. When I reached Jack by phone, he sounded uncharacteristically subdued. “Yeah, I got some pictures,” he said. “But I don’t have the Fairchild anymore.” “You don’t?” “Nope. I had to sell it.” “Jack, you don’t sound too good,” I said. “Are you doing okay?” “Well, I don’t know if I told you but I got the diabetes pretty bad. I always thought it would go to my feet or something, because of, you know, the circulation problems associated with it. But it went to my heart instead. I had some complications a while back and I lost function in one-half of my heart.” “Wow, Jack. I’m sorry to hear that.” “Oh, it’s all right,” he said. “But,when that happened I got to thinking that if something bad were to happen I couldn’t leave my wife with all the bills we got. And I realized we needed to buy our cemetery plots and make all those kinds of arrangements. Well, there was this guy who’d had his eye on my plane for a while, and he talked me into letting it go for sixty thousand dollars.” I remembered that Jack had originally had a higher asking price, so I asked him about that. “Well, with this whole economic crisis, times are tough around here. I felt lucky to get the sixty thousand. You know what surprised me, though?” “What’s that?” “The plane was in good enough shape that the guy actually flew it out of here. It was quite a sight.” Jack paused. “You know, in all the years I had it, I was always the one to fly it. So that was the first time in 35 years that I saw it in the air.” I imagined him shaking his head slowly as he said again, “Yep. Quite a sight.” ■

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Geology’s role in Saudi Aramco’s 75+ years of success

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il is a near-magical resource — and geoscientists are the professionals who point to where the genie in the petroleum bottle is likely buried under eons of rock. Once the genie is coaxed out of its bottle, it offers far more than three wishes. Besides serving as the basis for gasoline, diesel, jet fuel, naphtha and petrochemicals, a wide assortment of other products derive from petroleum, including fertilizers, pharmaceuticals, plastics, synthetic rubbers and hundreds more basic building blocks of consumer goods. And Saudi Aramco is always searching for more. Recently, the company’s Research and Development Center (R&DC) held an “Idea Factory” and asked

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scientists to consider nontraditional uses for hydrocarbons, and they came up with a wealth of ideas — from developing carbon fibers to chemical compounds for medicines. Indeed, because of oil’s exceedingly variable nature, Saudi Aramco’s hydrocarbon future appears very bright and continues to evolve. The foundation for this future is composed of technologies and processes that Saudi Aramco has developed over a period of 75 years to make the most effective use of hydrocarbons. Oil rigs on land and sea, vast pipelines, impressive gas-oil separation plants (GOSPs), glittering refineries and majestic tankers are all tangible examples of how we produce, process and transport hydrocarbon products. But the hydrocarbon business never stands still. Cutting-edge technology is the prime mover in this business, and Saudi Aramco is a leader. One can’t stand

At left: Vertical spires reach skyward in a complex rock formation near Madain Salih in western Saudi Arabia. At right: Birds rest on an offshore rock outcrop in the Red Sea along the Kingdom's western shoreline.

By Larry Siegel in front of the OSPAS (Oil Supply Planning and Scheduling) Department’s enormous video wall and not feel a sense of awe at how this operation manages Saudi Aramco’s business. Similarly, Saudi Aramco research and development continue to make impressive leaps with nanotechnology, carbon management and even biotechnology. But there would be none of these operations — or Saudi Aramco, for that matter — if intrepid rock hunters hadn’t used their skill and experience to find likely places to drill for black gold. These hunters, known originally as geologists, are among the first heroes in Saudi Arabia’s discovery of this rich resource that would have a profound effect on the progress and prosperity of the entire world. These individuals’ dedication and powerful understanding of geological formations made it

possible for Saudi Aramco to discover and manage the world’s largest reserves of oil. And that story continues and will continue for decades to come. Just a point to make for the skeptics who believe the world is running out of oil.

Recipe for oil and gas he actual petroleum and hydrocarbon story begins a very long time ago; from as little as hundred million years ago to more than 400 million years. For oil and gas to be created is almost a matter of chance. Conditions must be perfect with just the right combination of

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At top is a representation of a drillbit, used to drill well holes through solid rock. Bottom: A microscopic view of a reservoir rock, including solid grains and pore spaces, where petroleum is trapped.

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organic matter, combined with the proper type of rock that will contain the hydrocarbons. And then the temperature window must be between 80 and 140 degrees centigrade (176-284 degrees Fahrenheit). Most fortunately for Saudi Arabia, the country’s primordial landscape eons ago was perfectly designed to collect vast amounts of organic materials, generally algae,

Geologist, geoscientist, geodesist … The number of specialists working together to find hydrocarbons has grown exponentially from the earliest days. Here’s a list of key specialties. • Seismic Acquisition Specialist: Plans, controls and runs a 2-D or 3-D seismic crew. • Seismic Processor: Uses mathematics and computers to develop a time-related image of the subsurface. • Seismic Interpreter: Analyzes patterns in a seismic image and translates them into a 3-D model of the subsurface. • Potential Field Specialist: Uses gravity, magnetic and electric fields to identify subsurface properties. • Well Log Analyst: Measures and interprets the physical properties of rocks along the walls of a borehole. • Petroleum Geologist: A generalist involved in all aspects of oil discovery and production. • Well Site Geologist: Studies rock cuttings from wells to understand rock formations in order to provide information on how to best drill the well. • Driller: In charge of the drilling operations. Must constantly monitor the operation and be prepared to counter any problems. • Application Support and Trainer: Specializes in exploration software applications and trains others how to use them. • Geoscience Software Developer: Produces software that aids the search for hydrocarbons. • Surveyor: Determines terrestrial or three-dimensional space position of points, distances and angles to accurately map areas and position well locations. • Cartographer: Reproducers of maps that represent the Earth on flat surfaces.

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Once geoscientists locate prospective areas, derricks such as this one are rigged up to drill for hydrocarbons in the potential reservoirs.

furnishing everything necessary for the recipe to produce oil and gas. Contrary to popular belief, the probability is that the remains of dinosaurs were not among the ingredients of the oil-and- gas soup. This harvesting of organic material took place when Saudi Arabia was in a very different place and, in the earlier stages, was part of one huge land mass known as Gondwana. In fact, Saudi Arabia once occupied a place on this planet where Antarctica is now and eventually migrated to its current location. All the ingredients were present: In addition to the massive amounts of organic material, there were also the perfect geological structures for the hydrocarbon traps, an impervious seal and the heat needed to cook it all, capture and preserve it. This is why geologists refer to where the organic matter cooks for eons as “The Kitchen.” It turns out that the ancient land that became Saudi Arabia was a hydrocarbon chef’s dream, with multiple “kitchens” ideal for slow-cooking carbonate and shale stew. After many millions of years, the timer went off and the baked goods were ready. Voila! Hydrocarbons! Just as a pound cake may take 30 minutes and a turkey four or more hours, different hydrocarbon source rocks are also subject to different cooking times and different cooking temperatures, and geoscientists use the age and the type of organisms buried in the source rock to get a good picture of what type of hydrocarbon — oil and/or gas — may have been generated and trapped. The trick has always been how to find them.

Hydrocarbons and Saudi Arabia

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y now, everyone knows the story of the discovery of petroleum in Saudi Arabia. Those special people called geologists had discovered oil in Egypt, Iran, Iraq and Bahrain. In fact, it was by looking across to the Eastern Province of Saudi Arabia from Bahrain in the early 1930s that these geologists saw a geological structure very similar to the one in Bahrain that was being drilled for

Saudi Aramco has a long list of former geologist employees who were instrumental in the company's continuing success. Above: Standard Oil Co. of California geologists on a pre-Aramco surveying trip in the Kingdom in 1934: Felix Dreyfus, H.I. Burchfiel, Robert P. Miller, R.C. Kerr and Chas Roscheville. At right: Other former company geologists.

petroleum. Known as an anticline, it consists of arch-shaped layers of rock that jut up from the land — in this case, very near the Arabian Gulf. This classical structure forms ideal hydrocarbon traps if it includes porous rocks that could contain the oil. It seemed like a good bet to see if Saudi Arabia would be a promising place to drill. Of course, it was. It took Max Steinke and his team tedious, backbreaking months to strike paydirt. They drilled well after well with little success until on the seventh try, what looked like another bust at first, ultimately became “Prosperity Well” — the foundation of the vast Saudi oil empire. Steinke and his fellow geologists at the time were hardy and adventurous. They faced harsh obstacles that could be life-threatening. They worked through blazing heat and blinding sand storms as they explored nearly uninhabited areas. Their goal was to find promising oil shows, reservoir rocks and anticlines, that might indicate the presence of oil thousands of feet underground. Maybe one of the reasons geologists called the At right, Ali I. Al-Naimi, Saudi Arabia’s minister of Petroleum and Natural Resources and a professional geologist, shown at right in the 1970s, earned a bachelor-of-science degree in geology from Lehigh University, Pennsylvania, in the United States, and a master’s in geology from Stanford University, also in America. Al-Naimi was also Saudi Aramco’s first Saudi president and CEO.

underground pressure cooker “the kitchen” is that they often tasted and sniffed their way through promising landscapes. For example, if the dirt was crunchy, that indicated quartz and the quantity present. By “tasting” the rock, the geologist could often tell how sandy or shaley it was, important indicators of both reservoir and seal qualities. Likewise, by “smelling” the rock, the geologist could often interpret the presence of hydrocarbons. Everywhere geologists searched, they took precise notes and made excellent maps of the area, delineating all the unique rock formations. They collected rock specimens and fossils. In the end, it was by understanding how hydrocarbons were formed and the presence of promising geological features that gave the geologist a “best guess” about where to drill. This was, and still is, the riskiest part of the operation to find hydrocarbons. Many, many “dry” wells were drilled. But enough producing wells were discovered to make the exploration worthwhile.

The hydrocarbon hunt today

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hat a difference three quarters of a century make. Exploration today makes use of a whole host of experts (see sidebar on the different types of professionals

engaged in exploration). Today’s geo-scientists have the same goals as the earlier geologists and surveyors, which is the accumulation and assessment of data. However, that’s where comparisons end. Today, the methods of collecting data and analyzing it, and the strict process followed, are light years ahead of the old ways. There is still a requirement for the thorough understanding of how rocks are formed and deformed, but the amount of information that can be obtained today would be overwhelming to humans without high-speed computers and sophisticated programs, which are often developed in-house in Saudi Aramco. In fact, geo-scientists must deal with terabytes of data — enormous volumes, in other

The ultimate technical authorities are a highly experienced group known as the SPOT Team (see sidebar, To drill or not to drill, Page 17). They diligently look at all of the data and how it was arrived at by other professionals. If they feel that the information is incomplete or off target, they ask for more research and assessment to be done. Then all the relevant information is combined and the potential for discovery and the risks involved are concluded. The purpose of this very intense assessment of input is to lower the number of unprofitable wells. According Ali Al-Hauwaj, manager of the Area Exploration Department, today we have a better than 50/100 chance that anytime a well is drilled, it will find oil or gas. That is a phenomenal average compared to past efforts, and it even impresses geoscientists today. “It is a combination of the expertise of our professionals and the fact that Saudi Arabia has enormous, undiscovered resources.”

The business of exploration ntil recently, Saudi Aramco explored specific operating areas within Saudi Arabia. Today, exploration covers the entire Kingdom and extends to the Arabian Gulf and the Red Sea. According to Al-Hauwaj, “We are at the highest level of exploration operation ever, covering more territory than ever.” “It is interesting to note that some of the areas Saudi Aramco is now exploring are vastly different geologically from the traditional exploration areas in the Kingdom,”

U A Saudi Aramco employee views microscopic rocks samples to gauge porosity, the amount of space available for storing oil.

words — to find the nuggets of information that make for a successful hunt (See sidebar on today’s sophisticated methods of gathering data). The next step in the hunt for hydrocarbons is for professionals from different disciplines to share data and defend opinions. This is a vital process because, as a portfolio of prospects is developed, there is a thorough risk assessment, and only prospects with the highest potential go to the final step, which is drilling.

16 Saudi Aramco Dimensions

Above, a microscopic sliver of mineral chlorite, magnified by an electron microscope, appears as giant layers of material. Microscopic minerals and fossils give geologists big clues to the properties of potential oil reservoirs.

Saudi Aramco searches for oil on land and in the sea. This jack-up rig can move from place to place in the Arabian Gulf to drill for oil and gas in the most promising places.

To drill or not to drill E

xploration’s SPOT (Strategic Planning and Optimization Team) provides a final level of security for drilling projects. How does the company decide where to drill for new oil? Taking into account that each project may cost more than 10 million dollars and take up to 10 years to be productive, there is a lot of pressure to make the right decisions. That’s one of the reasons why Exploration crunches a remarkable amount of data from a wide variety of sophisticated methods of searching for oil and gas. Ultimately, turning data into useable information is up to the various exploration teams that are assigned to different geographical areas in Saudi Arabia. Interpreters on these teams find prospective drilling locations and put together all of their findings and conclusions about the viability of the site to test for oil and gas in economic volumes. This is then assembled into a well proposal on why that specific drilling location should be added to Exploration’s portfolio of prospects.

Enter SPOT. The team consists of five experienced geo-scientists who each have more than two decades of worldwide exploration experience. They include team leaders Martin Dickens, Roger Price, Bill Stone, Marty Robinson and Stig-Arne Kristoffersen. Their job is to review each interpreter’s recommendations on where to drill. “This is not a judgmental exercise on any individual’s professional ability,” says Martin. “We are merely assessing the probability of his or her prospect successfully discovering a sufficient volume of new hydrocarbons to replace and add hydrocarbons in line with our business-plan goals. Our objective also is to serve as facilitators durA microscope is a more ing the review. We often useful tool than a traditional make suggestions about pickax and sextant in modern geology. Technology is leading the modifying or gathering way to the future in hydrocarbon some additional data in exploration.

Summer 2009 17

Exploration goes hi-tech Early geoscientists relied on a few hand-held tools to get the job done. Today there is a wide range of hightech data acquisition techniques that gather data for the exploration of hydrocarbons. • Satellite imagery and air photos for surface geology mapping. • Aero magnetic and gravity surveys and/or a surface magnetic survey with a gravity survey for regional basin and mega-structure mapping. • Ship-borne magnetic and gravity surveys for regional basin and mega structure mapping in the offshore. • 2D and 3D seismic surveys (the most important tool for structural and reservoir mapping in the oil industry). There are many types of seismic surveys in different terrains such as marine, transitional and land (including deserts, swamps, forests and hills areas). In land surveys, vibroseis (making vibrations) is common in Saudi Arabia, however dynamite is used in other parts of the world. For a marine environment, an air-gun serves best. Detailed imaging requires high-density data. • 4D seismic (time lapse) survey for reservoir management and production optimization. • Wireline logging for down-hole formation evaluation is extremely important after exploratory well drilling. Type of logs: Gamma ray, neutron density, resistivity, porosity, cement bond, caliper, FMI and pressure, to name just a few. • Production test (DST-Drill Stem Test) for hydrocarbon properties evaluation. • Conventional cores and sidewall core for analysis and mineralogy study in core labs. They are subjected to porosity and permeability analysis as well as searching for fossils for dating and environment.

order to improve the overall probability of success for the prospect. Remember, our job is to discover new sources of oil and gas, so we can’t do our job if we reject prospects. We strive to review prospects with an optimistic eye.” In fact, the primary job of SPOT is to ensure the company has as

18 Saudi Aramco Dimensions

much verified data as possible before the first well is drilled on a prospect. “Our job,” says Martin, “is to associate an unbiased level of risk or probability of success to each prospect. We evaluate the hydrocarbon system, look at the geological data and put a risk value to each element of the prospect. We’re looking for both the chance of success of finding oil or gas and what the reservoir capacity might be. Because we are not attached to any of the prospectgenerating divisions, we can risk all prospects without any pressure or bias being involved. Additionally all of the statistical methodology in risking a prospect is also designed to exclude bias, which is a very important criterion.” After the data is reviewed, the prospect is added into Exploration’s portfolio of prospects that contain both low and high probability of success. To help them, the team uses an in-housedeveloped software system called PAL (Prospects and Leads). PAL takes each prospect’s data and ranks it in order of probability of success and expected volumes of hydrocarbons. Computer simulations are performed in PAL for each prospect in order to assign potential discoverable hydrocarbon volumes, and the team provides a report for each summarizing the risk elements with recommendations for management. The PAL database is also linked to a Drill Scheduler software developed by SPOT and ECC. This software enables the drilling schedule portfolio to be planned by directly accessing the PAL database for decision-making. For example, when a current well has to be replaced by another location, the software updates expected discovered/risked volumes of oil or gas for that year on the fly so that the effect of any alteration to the planned schedule can be seen instantaneously. The Drill Scheduler application is used for the daily well operations meeting with senior management. However, even with all the data, SPOT relies on personal experience and a broad view of some of the industry’s stark realities. “The inescapable fact is that the risk is highest during the earliest stages of exploration”, says Marty. “Therefore, a place like the offshore Red Sea is high risk by definition since we haven’t begun to drill there yet, while the risk is lower if we drill in an area that has been historically productive.” However, high risk may not be a bad thing. “The prospects with the highest level of risk may also have some of the largest reserves. Our objective is to add up all the possibilities and work hard to focus on the prospects with the highest potential to find reserves for the company. The probability is that we’ll drill some dry holes in the beginning, but ultimately we’ll be successful.” And a big reason for that success is that Saudi Aramco relies on a combination of its people’s expertise and experience, combined with the latest tools and a great deal of computing power to sift through mountains of input.

The Red Sea: Saudi Aramco’s new frontier G

eologically, the western coastal region of Saudi Arabia, bordering the Red Sea, is very different from the Eastern Province. The western region poses unique challenges, including ultradeep water (more than 2 kilometers deep in many places), high temperatures and heat flow in the rocks, undersea volcanoes, newly created oceanic basalts in some central portions of the Red Sea, extremely complex geology, a thick salt sequence up to 7,000 feet thick below the seafloor that acts like a lens which can severely distort the seismic image, and a unique geologic style (extensional tectonics). In addition, the Red Sea has more than 180,000 square km. of area with almost no well control for the exploration team to calibrate their interpretations. The Red Sea Exploration Team was formed in 2006 and has currently acquired over 22,000 km. of 2-D seismic data in the Red Sea. The team has also acquired almost 200,000 sq. km. of airborne

Below left: A Saudi Aramco vessel plies the waters of the Red Sea, where the company is exploring for new undersea hydrocarbon deposits. Below right: Toothy barracuda in the Red Sea, which is rich with sea life

Al-Hauwaj said. “In fact, exploring the Red Sea is just like going to another country. It is a vastly different area for us (see sidebar on Red Sea exploration).” Discoveries are continually being made. “The company have a target set each year for both oil and gas,” said Al-Hauwaj. And we always beat that target. In gas, we often beat it by a factor of two.” The company has also been successful in adding the targeted oil reserves, and in some cases exceeding our goals. The fact is that oil

gravity and magnetics data, and is also using a satellite seep study. By recognizing the localities of these seeps and their repeatability over time, explorationists can narrow down which are likely to be from a geological source on the seafloor. Ultimately, the plan is to drill exploration wells in the Red Sea, but there is much work to be done first. The premier technology to be used is the acquisition of a rich or wide azimuth marine 3D seismic survey over one or more prioritized areas of the Red Sea. In conjunction with wide azimuth 3D data and satellite seep studies, several new and cutting-edge technologies have either been initiated or are being evaluated for possible use: seafloor heat flow studies, seafloor piston core sampling for geochemical analysis, full tensor gradiometry, and marine Electro-Magnetic methods are the primary examples. In addition, the Area Exploration Department will acquire seafloor bathymetry of the Saudi side of the Red Sea to help understand the overall tectonic framework of the Red Sea area. The Red Sea represents a truly high-risk and potentially highreward area to explore, and Saudi Aramco has committed major resources to thoroughly evaluate this exciting and challenging part of the Kingdom.

continues to be found in quantity, but Saudi Aramco remains conservative in its estimate of total reserves. When asked if Saudi Aramco was nearing the end of its profitable exploration, Hauwaj laughed. “We are now discovering new sources of oil and gas in areas where we’ve been producing hydrocarbons for decades. We have at least twenty, thirty or more years of exploration ahead in the Kingdom.” ■

Summer 2009 19

SANDSTORM PHOTOS BY DOUGLAS J. HORN

20 Saudi Aramco Dimensions

For Saudi Aramco, Mother Nature is a critical project-management concern WRITTEN BY MARGOT RAWLINGS

It’s the day after the first heavy winter rains, and the world feels cleansed and fresh. The color has returned, the leaves are green and the roof tiles are terracotta once more in the familiar, seasonal rhythms of weather.

T

he desert flora will be erupting in its intermittent splendor and the fragile ecology will survive another cycle. It feels like a new beginning for us all. Right now, I worry that my children are dressed warmly enough for the cold winds on the school playground, and while I’m procrastinating about washing the A Saudi Aramco employee checks the WeatherNow Web site on the company’s intranet system. The site provides Kingdom-wide weather reports and data.

Summer 2009 21

In the pursuit of operational excellence, Saudi Aramco has developed a meteorological system that continuously delivers accurate weather and air-quality information across the Kingdom in real-time.

22 Saudi Aramco Dimensions

SANDSTORM PHOTOS BY DOUGLAS J. HORN

Weather can cause all kinds of problems, such as safety issues related to wind (photo at left), and electrical power transmission flaws caused by airborne dust and sand (below).

resultant mud crust off my car, I remind myself how shortlived this season will be — and how soon we will once more be immersed in the Peninsula’s relentless, searing heat. It doesn’t matter where you live on Earth, no one and nothing escapes the weather — we just adjust to its differing extremes. We all understand the effect of Saudi Arabia’s climate on us personally, but the weather plays a significant but less self-evident role in most of Saudi Aramco’s operations. For example, high ambient air temperatures cause energy loss during overhead power transmission. Pilots of both aircraft and ships watch the wind to ensure smooth navigation

with optimal fuel use. Similarly, heavy-lift crane operations are instantly suspended if the winds exceed threshold safety values. During emergency drills, the wind direction must be known to safely evacuate personnel. Indeed, wind direction is constantly monitored throughout the company. Saudi Aramco has been monitoring the weather since the 1930s. In those days, daily readings were taken manually and written up in notebooks. The first automation came with the introduction of a timer-based mechanical drum that tracked temperature swings throughout the day. It wasn’t until the early 1980s that data gathering became “semi-automated” in

Summer 2009 23

response to the company’s need to monitor its emissions within the air-quality standards set by the Kingdom’s Presidency for Meteorology and Environment. At that time, the data was recorded in stand-alone data files, connected to an electronic data logger at each remote station. These files needed to be physically gathered from the field on floppy discs, driven back to Dhahran and manually consolidated into spreadsheets for analysis. The next advance was to use onsite modems and longdistance phone calls to retrieve the data at regular intervals. Although more convenient than site visits, this system was prone to technical problems. During this era of semi-automated consolidation of data for the annual environmental reports took several months. Responding to ad hoc data requests from facility planners, engineers and others was a significant challenge due to the collation, quality assurance and reformatting required. Modern-day assessment of the weather has come a long way from the days of drum recorders and floppy discs. In the pursuit of operational excellence, Saudi Aramco has developed a meteorological system that continuously delivers accurate weather and air-quality information across the Kingdom in real-time. In a search for full automation, the Environmental Protection Department (EPD) approached the e-Map Division of Information Technology in 2002. The goal was to replace the isolated “data pockets” with a single database and exploit the on-demand data reporting capabilities of the Internet. EPD sought to leverage the data to ease their annual reporting requirements, and also to allow easy access to other organizations. For e-Map Division and Information Technology (IT), the data was a vital part of several real-time emergencyresponse applications that were being developed. The stage for innovation was set. Peter O’Regan, an IT expert from e-Map Division, and Daniel Beard, an environmental specialist from EPD, led the project. As Beard explains, “Like all creative projects, this system has evolved gradually to capitalize on improvements in the

24 Saudi Aramco Dimensions

Saudi Aramco specialists monitor the weather to insure safety and efficiency for company operations in the air and sea, and on land.

The prevailing wind direction is consistently northwest, and its form and force are largely influenced by global pressure systems such as the Himalayan monsoon system centered over the Asian subcontinent. For the most part, the location of that wind system is semi-permanent, but it does move around a little depending on what is happening with the weather system to the north and south of our location. A shift north may draw in warm humid warm air from the south and if

the low-pressure system moves south, we see drier northerly winds. But this feature of our climate is there year after year and is closely aligned to global trends and known weather systems. One of the unavoidable features of the local climate is humidity. We all know what humidity is, right? Well, actually, probably not. Humidity is quite a difficult concept to grasp. We are all probably familiar with the term usually used by television weather presenters — “relative humidity” — so let’s start there. When we get up on a hot-and-sticky summer’s morning, and the temperature is 90° Fahrenheit (F) and the relative humidity is reported as 90 percent, we can feel the water vapor in the air. So why when the temperature rises to 100°F and the reported relative humidity drops to 70 percent do we not feel any less sticky? Well, because the rising temperature has increased the air’s ability to support water vapor. Therefore the rise in temperature has not reduced the water vapor in the air; it has just expanded the air’s ability to support more. So we still feel that oppressive mist around us. Oh, and we feel unpleasantly hot because we cool ourselves by sweating, and when the air’s water-vapor content is high this system doesn’t work as efficiently. Relative humidity is a measure of how much water is in the air versus how much water could be in the air at that

HUMIDITY: ‘Hot and sticky’ isn’t the half of it

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desert by definition receives less than 10 inches of rain each year. Here in Saudi Arabia, we tend to average around one to two inches. Granted, some years we receive four inches, but in other years precipitation is negligible, and that situation hasn’t altered since records began.

temperature. If no more water vapor could be supported then relative humidity will be 100 percent. See, it’s complicated. Be patient. Here’s a more accurate way to asses how nasty it might be outside on that August morning. The more accurate measure of humidity is the “dew point," which takes into account the air temperature. The dew point is the temperature the air needs to be cooled to at that point in time to achieve a relative humidity of 100%. At this point, the air cannot hold any more water in gas form. If the air were to be cooled even more, water vapor would have to come out of the atmosphere in the liquid form, usually as fog or rain. The higher the dew point rises, the greater the amount of moisture in the air. This directly effects how "comfortable" it will feel outside. At a relative humidity of 100% the dew point temperature always equals the temperature. The greater the difference between temperature and dew point, the lower the relative humidity. Unlike relative humidity, if dew point increases it is only because the amount of moisture in the air increases. If relative humidity changes it can be because of temperature changes or moisture changes, or both So how does dew point feel? On a 90°F day the following apply: DEW POINT

HUMAN PERCEPTION

RELATIVE HUMIDITY

75˚F+

Extremely uncomfortable, oppressive

62%

70˚-74˚F

Very humid, quite uncomfortable

52%-60%

65˚-69˚F

Somewhat uncomfortable for most people at upper limit

44%-52%

60˚-64˚F

Ok for most, but everyone perceives humidity at upper limit

37%-46%

55˚-59˚F

Comfortable

31%-41%

50˚-54˚F

Very comfortable

31%-37%

49˚F or lower

Starting to feel a bit dry to some

30%

Summer 2009 25

company’s IT infrastructure and data networking. We tried several technology approaches that worked fine initially but encountered problems as more stations were added or server configurations were changed. The system needed to be totally scalable, redundant and self-monitoring to eliminate data loss and ensure 24/7 availability. Working closely with experts from several corporate IT organizations, we have achieved this goal and created a very reliable and innovative system that serves many operational and reporting needs.” Having devised In a land where rainfall is exceedingly the system for relisparse, water is precious, as in this ably collecting and agricultural irrigation system in the storing the data, the Eastern Province city of Hofuf below.

next step was to leverage the data and make it accessible to staff within EPD, the Air Quality and Meteorology Unit, and across the company. The Web was the logical tool for ondemand reporting. Although access to the air-quality data is restricted, the weather data is fully accessible online through Saudi Aramco’s WeatherNow Web site. The first screen displays a choice of company sites either from a drop-down menu or by clicking on a point on a map. The current weather conditions at that site are displayed, and the screen refreshes automatically every minute. The site is visited by 500 and 1,000 employees each day. For those looking for a little more detail, the site also allows the visitor to query and download the entire weather

and what is still at risk? Do we have people working or living downwind? What is the safest approach route for emergency services? Where are the safest sites for our field command or patient triage? During industrial emergencies such as gas leaks or fires, the wind direction and speed is closely monitored to avoid exposure to spreading fire or lethal gases such as H2S. The wind direction must be monitored in real-time to manage the ongoing situation. “Traditionally, when we were alerted to an emergency, someone would step out of the control room, look at a wind sock, make a judgment about wind direction and speed and report back. It led to inevitable inconsistencies and some

errors. This approach posed significant risks for emergency services,” explains Abdulla N. Helal, North Ghawar Producing Department Manager. Seeking to improve this situation, NGPD partnered with the e-Map Division of IT’s Corporate Applications Department and the Corporate Emergency Responder Tool (CERT) was born. This highly secure, Web-based application provides decision makers with a “zoomable” satellite image overlaid with digital maps created by Saudi Aramco’s own Surveying Services Division. The digital map displays the roads, buildings, utilities, and the thousands of oil and gas wells of Saudi Aramco’s reservoirs, as well as live data streaming from the weather stations and gas sensors is dynamically displayed over the base map giving it tactical value. The data from the weather stations is automatically interpreted and delivered directly to the control room computer screens. It’s presented both graphically and in written words, The Web-based Corporate Emergency Responder Tool allows commanders to quickly assess emergency situations.

THE CORPORATE EMERGENCY RESPONDER TOOL

I

n an emergency, every second counts and complex decisions are made under pressure. Decision makers need facts: what is damaged,

so there is no room for misunderstanding. “CERT is a very innovative system that integrates many data sources and systems into one intuitive graphical interface. The searchable, dynamic maps help emergency commanders to quickly establish the facts of the situation and coordinate a tightly integrated response,” Helal explained. Along with live weather and gas sensor readings, CERT provides quick links to information such as well-flow information, including historical data, and rig locations and movements captured every night. All critical valve and pipeline information including Flowlines and Trunklines is also readily available. These data help to remotely pinpoint possible causes for an event and, therefore, help determine appropriate solutions. An integral part of CERT is a gas dispersion model created by Aramco’s Loss Prevention Department. In the case of a well blow-out, CERT generates “exposure zones” that graphically show how far the gas could travel in a worst-case scenario and what could be directly impacted. The map display helps to quickly position road-blocks and safely evacuate personnel from the danger areas. The CERT display is closely monitored on large plasma screens in multiple Emergency Control Centers amid the constant radio updates. The CERT map provides a common operating picture during a stressful time. “CERT is far more than a computer application. It shows what can be achieved when organizational boundaries are discarded, and we all focus purely on a shared cause — safety. We have made a unique and truly corporate tool that is used across all producing facilities and control centers. It was built entirely in-house using the combined talent of young programmers and the experience of operations staff. Best of all, CERT leverages existing IT hardware and software licenses, plus the hard work and high-quality data from many organizations. And at the core of it all are those towering weather stations,” says Peter O’Regan, e-Map Division’s Geographical Information Systems (GIS) expert and the architect of CERT.

Summer 2009 27

history for most company locations. With a single mouse click, this data can be directly exported to Exel for graphing and trend analysis. “Information Technology continues to work closely with EPD and all Producing organizations to create a comprehensive real-time weather network. Instead of scattered, standalone weather stations within the Plants, we now have a rich, corporate database that feeds many critical applications — every minute, 24 hours a day. This was all achieved by tapping into existing in-house expertise and leveraging the existing technology infrastructure. It is an ideal outcome,” said Khalid A. Al-Arfaj, the Administrator of IT’s e-Map Division So whether Saudi Aramco employees or dependents are evaluating the safest location for a new facility; arranging a crane lift; or planning the best time to plant roses at home, visit http://weathernow. ■

Below, a rain drainage system along the East-West Pipeline in 1992. At right, an aerial view of the Manifa oil field project in the Arabian Gulf, where weather can impact work safety. Below right, a Saudi Aramco jet takes off in remote Shaybah, where the searing Empty Quarter heat can affect lift.

28 Saudi Aramco Dimensions

At left, an air-quality monitoring device. Below, Saudi Aramco employees check company weather equipment and log the information in comprehensive reports.

COMPLIANCE MONITORING, trend analysis and design data

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audi Aramco’s immediate past president and CEO, Abdallah S. Jum'ah, once said, “Environmental accountability today stands as one of the most important measures by which a company is regarded. If an organization is not active in safeguarding the Earth's natural resources, its best efforts in all other business areas are diminished. Indeed, the very perception of corporate attitudes toward environmental protection carries significant weight in the public's trust of that company.” In 1981, the Kingdom entrusted the Presidency of Meteorology and Environment (PME) with control of pollution and protection of the environment in Saudi Arabia. Through the General Environmental Law and its Rules for Implementation, PME aims to, among other things, preserve, protect and develop the environment and safeguard it from pollution, as well as protect public health from activities and acts that harm the environment. In recent decades, the nation’s industrial expansion and population growth has increased pressure on the environment. As the nation’s largest industry, Saudi Aramco has always been very aware of its responsibility to maintain the highest environmental standards. The company’s Environmental Protection Department (EPD) is charged with the task of monitoring air quality, reporting on compliance and advising facility management on ways to “clean up” their operations. The original weather stations in the Air Quality and Meteorology Monitoring Network (AMMNET) were erected by EPD to assist in that task. Each station records parameters such as sulfur dioxide, inhalable particulates, ozone, nitrogen oxide, carbon monoxide and hydrogen sulfide. Facility emissions are monitored at their source using stack testing and continuous emission and process-control monitoring. Sophisticated numerical air-dispersion techniques supported by

data from AMMNET enable EPD to estimate ground-level concentrations of pollutants at various distances from a potential emissions source even before a facility is built or modified. Such predictive modelling is used to determine the type of facility controls needed to comply with applicable air-quality standards. “From time to time, a facility may breach the air-quality standards, but its picked up immediately and reported. We work with plant management to find solutions to the problem, and as a result the company has developed many innovative technologies to clean up its operations,” explains Earl K. Fosdik, environmental projects manager. But not all emissions can be pinpointed to a single source, and solutions are not always clear-cut. For these substances, EPD monitors for shifting trends. One such substance is ozone. Although ozone in the upper atmosphere protects the planet from damaging ultraviolet rays, at ground level it is an unwanted pollutant that can affect human and plant health. AMMNET and EPD have also provided another service to the company — design data. The design of the Shaybah heating, ventilation and air conditioning system is an example. “The vendor originally expected that air temperatures onsite would regularly reach 60 degrees. Our monitoring at the time showed that 50 degrees was a more accurate average. Consequently, the design was downscaled, and this saved the company millions of dollars,” explains Daniel Baird, supervisor of Industrial Relations Respiratory Care Unit. Air-quality compliance monitoring, trend analysis and design data were the initial uses for the AMMNET system. But it was inevitable that the rest of the company would realize the value of using the data collected from the weather towers, and demand unsurprisingly increased rapidly. Although the air-quality data remains confidential, the weather data is now freely available, reducing the cumbersome and time-consuming request process originally required through EPD. Dan Baird is pleased to see the data more widely used. “Promoting the data was always a double-edged sword because we simply didn’t have the resources to dedicate to a whole lot of requests. Now that we have WeatherNow, anyone can get the weather data they need for their decision making, and we are freed up to concentrate on our core responsibilities.”

Summer 2009 29

News Dimensi ns AL-FALIH: PRAGMATISM AND COOPERATION KEYS TO SECURITY

Though Khurais is the largest single crude-oil increment ever commissioned, at 1.2 million bpd, it is only part of the story, Al-Falih said. In the next decade, the company will account for more than half the grassroots By Louis J. Aboud crude-oil production capacity brought online worldwide and, between now and 2015, one of every three barrels ASHINGTON, D.C. — Saudi Aramco president of firm commitments to new refinery capacity. and CEO Khalid A. Al-Falih spoke May 5-6 to “Major investments such as audiences in Washington, D.C., these allow us to play a central about the need for corporate role in helping to meet the responsibility in this time of world’s demand for energy economic uncertainty, and the and constitute what I consider wisdom of collaborative and taking charge by taking pragmatic approaches to energy responsibility,” Al-Falih told security and the environment. the audience of more than He also emphasized Saudi 400, including 22 SAMDS Aramco’s role in meeting U.S. participants. and global energy demand. Turning to economic chalHis visit coincided with the lenges and the energy and Saudi Aramco Management environmental debate, Al-Falih Development Seminar told energy policy experts and (SAMDS), held in Washington government officials at CSIS each year. Al-Falih addressed a that a collaborative, pragmatic dinner May 5 in honor of the approach was needed for SAMDS participants at the long-term, global energy National Portrait Gallery’s security and environmental Kogod Auditorium, part of the stewardship. Smithsonian Institution. One of the most significant He also met with governSaudi Aramco president and CEO Khalid A. Al-Falih lessons from this economic ment officials, energy analysts speaks at the National Portrait Gallery at Washington, D.C. Al-Falih noted that in just a few weeks, with the crisis, Al-Falih said, is the and industry and media reprecompletion of the Khurais oil field program, the company reminder that the world has sentatives at the Center for would reach a crude-oil production capacity of 12 million barrels per day. become highly integrated and Strategic and International mutually dependent. In the Studies (CSIS) on May 6 for a energy industry, that means that the strategies and discussion on energy and the environment. actions of even a single major supplier or consumer have At the Portrait Gallery, Al-Falih emphasized the theme widespread implications. of “responsibility” and said the global petroleum industry “The economic cost to the world will be considerable must be responsible to its many stakeholders. For Saudi if the industry is not well-prepared for future growth in Aramco, he said, that means ensuring that Saudi Aramco consumption: We all know that potential supply-demand remains the most reliable supplier of energy to the world. imbalances have the potential to trigger another cycle of Al-Falih detailed the company’s current oil and gas steep price rises and debilitating market volatility. That, in expansion program, noting that in just a few weeks, turn, would spell trouble for the green shoots of a nascent with the completion of the Khurais oil field program, it economic recovery,” Al-Falih said. would reach a crude-oil production capacity of 12 million barrels per day (bpd).

W

30 Saudi Aramco Dimensions

SAUDI ARAMCO BOARD OKS 2010-2014 PLAN

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OUSTON, TEXAS — The annual spring meeting of Saudi Aramco’s Board of Directors was held April 30-May 1 in Houston, Texas, presided over by chairman H.E. Ali I. Al-Naimi, Minister of Petroleum and Mineral Resources. The Board approved the company’s proposed 20102014 Business Plan to continue its investments along the entire petroleum value chain, both in-Kingdom and in key overseas markets. During the meeting, the board received an assessment of international oil and energy markets, progress and status reports on the company’s many projects, and projections for the global economy in the short- and long-term. The changing dynamics in the global economy and petroleum markets posed new challenges, and the board urged employees to rise to the challenges that lie ahead. The company’s pragmatic approach to implementing its strategies and “We continue to invest conducting its operations against because we take a the backdrop of a long-term view and are challenging economnot swayed by the ic environment volatility of short-term was highlighted by Khalid A. Al-Falih, market conditions,’’ president and CEO. — KHALID A. AL-FALIH, “Despite the current PRESIDENT AND CEO slowdown in global economic activity,” Al-Falih said, “the company’s emphasis will remain on investing for the long-term and maintaining its leading role as the world’s most reliable supplier of energy. “We continue to invest because we take a long-term view and are not swayed by the volatility of short-term market conditions,’’ Al-Falih added. “We have a huge responsibility to our stakeholders throughout the Kingdom and around the globe, and we will continue to meet our commitments to them.’’

GOOD AS NEW Below: Saudi Aramco’s Riyadh Refinery and related contractor personnel recently conducted a mega test and inspection of the refinery complex. There were no lost-time injuries in the T&I, which took 39 days and involved 1,000 regular employees, 5,000 contractor employees and 800 pieces of equipment. Safety was the main focus of the planning team.

Above: Riyadh Refinery and contractor personnel participated in safety meetings during the T&I, reflecting the major emphasis given to safety in the project.

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News Dimensi ns VOLUNTEERS RESTORE MANGROVE SWAMP

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ARUT BAY — More than 500 volunteers, including 150 orphans from local schools, joined president and CEO Khalid A. Al-Falih and executive management on April 9 to plant around 10,000 mangroves for a campaign that literally brought volunteers back to their roots. “This is the third time I’ve come,” said 16-year-old Khaled, son of company employee Abdullah Al-Marry, who came with his family. “We planted 15 seedlings this year … and we had a lot of fun.” The “Save the Mangroves” campaign first started as an awareness drive in the 1970s, when the mangrove population of the Arabian Gulf had gone down due to pollution, landfills, dredging and the increased demand for wood. By 1990, the campaign included efforts to bring back the former staple of the Arabian Gulf coastline. “During the first campaign, 100 seedlings were planted at Abu Ali Bay,” said Abdullah A. Al-Qarni, long-time supporter of the annual campaigns. “They were left for a while, and after 10 years they had become 1,000 plants — they reproduced on their own.” This experience demonstrated that the salt-tolerant mangroves could be introduced to areas where they did not previously exist and — with 50,000 mangroves Volunteers dig holes for planting mangrove seedlings on the Arabian Gulf shoreline.

planted to date — it has become an environmental success. It is also popular with volunteers. “I saw the ones we planted years before, and I can tell the difference; they’ve grown,” said 15-year-old Abdullah Abdulaziz Al-Thawadi, an orphan who frequently participates. “I will be coming again next year.” Mangroves are known to stabilize the shoreline, especially during storms, and provide nursing grounds for commercial fish and shrimp.

MATERIALS SUPPLY HONORED

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ONDON — Saudi Aramco received two honors May 12 — the prestigious Procurement Leader Award and the Innovation Award — from the Procurement Leaders Network during a ceremony at the historic Banqueting House. Esam A. Mousli, Saudi Aramco’s vice president of Materials Supply, accepted the awards on behalf of the company. The Procurement Award went to Mousli in recognition of his achievements in managing a supply-chain organization with a total procurement value of more than $30 billion in 2008 while leading a series of strategic initiatives designed to transform Materials Supply from a service provider to a manager of best-in-class supply-chain services. The Innovation Award recognized one of Materials Supply’s key strategic initiatives: the Electronic Contracting Network (ECN). Phase II of the Contract Room concept has transformed the way the company procures its contracts, significantly reducing lead time by supplying one hub for procurement information and re-engineering 60 business procedures. It was the first time the Procurement Leaders Network opened its awards to companies outside Europe. The awards recognize the best and most innovative procurement and supply-chain projects among the world’s top companies during the previous 12 months. Saudi Aramco had initiatives short-listed in five of eight award categories.

Esam A. Mousli accepts the Procurement Leader Award from representatives of the Procurement Leaders Network at a ceremony in London.

The awards are judged by a panel of nine judges, all senior procurement and supply-chain leaders.

ECO-FRIENDLY PIPING audi Aramco project teams from the Oil and Gas Upstream Pipelines Division (O&GUPD) and the Offshore Projects Division (OPD) working at Berri and Abu Ali Island recently accomplished two environmentally significant feats. The first was the completion of Saudi Aramco’s longest underground pipeline sections installed using Horizontal Directional Drilling (HDD) methods. The 3,200-meter sections of 24-inch crude pipeline and 30-inch waterinjection pipeline were installed as deep as 32 meters beneath the seabed between Abu Ali Island and the end of Berri Causeway, using state-of-the-art drilling equipment. The other major accomplishment was the first use by Saudi Aramco of HDD technology in the installation of a

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At right: From left are Thaha Abdul Salam, contractor, rig support; Yasser Ahmed, Project Management safety adviser; Salah Zahrah, Project Management site superintendent; Gerd Nuihs, contractor driller; Ali K. Al-Uthaibi, Project Management project engineer; Ziad Gazzoul, drilling supervisor; and Veneer Capunitan, contractor supervisor. Bottom Right: The horizontal drilling machine is guided from the steering cabin, while casing is being pushed underground during a horizontal directional drilling operation. Bottom left: Contractor and Saudi Aramco personnel, including Project Management project engineer Abdulaziz Al-Hulail and site superintendent Barry Simm, step up to the trench after the pulling of pipe is completed.

pipeline running from the shoreline into the sea. The 30-inch water-injection pipeline contained an underground section that stretched from the edge of Abu Ali Island to an exit point more than 1,500 meters into the Berri offshore oil field. HDD has a significant advantage over conventional practices in that it avoids the environmental impact associated with dredging offshore. That was an important factor at Berri and Abu Ali Island because of the sensitive nature of the local marine environment, where several endangered species of coral are found. HDD also had the added cost advantage over dredging at Berri due to shallow local seabed conditions. Extensive access dredging would have been required just to reach the pipeline dredging zone. HDD is a sophisticated engineering technique that enables the laying of underground sections of pipeline without the need to trench or dredge the pipe route. The first stage of the process involves drilling a pilot hole between two ground entry points. Electronic positioning/steering instrumentation is used to guide the drill head along the specified path. Once the pilot hole is completed, a series of reaming passes are made using progressively larger tools to expand the hole to the required size. The final stage involves pulling the new pipeline through the newly formed tunnel. The HDD work at Berri and Abu Ali was undertaken by Drilltec and Digital Connection Co. Ltd. through main contractors Global Al-Rushaid Offshore Co. Ltd. and Al-Robaya Est.

found. That moves the origins of vascular land plants from the Silurian Period, which began some 443.7 million years ago, into the Late Ordovician (455 million years ago). Miller said the present-day Arabian Peninsula was located along the northern margin of an ancient Southern Faysal H. Al-Khaldi Hemisphere landmass called Gondwana. The research suggests that the development of vascular plants evolved earlier than previously thought and that they may have subsequently migrated out of Gondwana and colonized other continents. Miller noted that the palynology of Saudi Arabia has been a subject of thorough investigation starting in the 1990s with an international team of researchers. So far, three volumes on the palynology of Saudi Arabia have been published, and he said the current research likely will be published in an upcoming fourth volume.

AL-KHALDI ENDS 38-YEAR CAREER

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HAHRAN — Executive director of Northern Area Gas Operations (NAGO) Faysal H. Al-Khaldi, recently retired after a long, dedicated career with Saudi Aramco. Al-Khaldi joined the company in 1971 through the Industrial Training Center, and in 1977, he became senior mechanic before going on out-of-Kingdom training to earn his bachelor’s degree in chemical engineering from New Mexico State University in 1981. He returned as an engineer and took on several assignments with Southern Area Operations Engineering, Qurayyah Seawater Operations Engineering, Southern Area Production Engineering and Shedgum Producing Engineering. Other key assignments during his long career:

• 1984: Maintenance engineer for Qurayyah Seawater Maintenance • 1985: Foreman of oil and gas operations for ADGOSP-3 and Khurais Facility Unit. • 1992: General supervisor of Southern Area Producing Engineering • 1993: Manager of Ras Tanura Producing • 1995: Manager of Safaniya Producing Maintenance • 1996: Manager of Safaniya Producing Operations • 1999: Manager of Safaniya Onshore Producing • 2000 (May-September): Executive director of Safety and Industrial Security • 2000 (October): Acting manager of Exploration and Producing Facilities Technology Department, to which he was appointed manager in February 2001. • 2002-2003: Manager of North Ghawar Producing • 2003: Executive director of Southern Area Oil Operations • 2008: Executive director of Northern Area Gas Operations, the position from which he retired.

Saudi Aramco’s John Melvin, left, and Merrell A. Miller were part of a team whose research on drilling cores resulted in new information on the origins of plant life.

Al-Khaldi took part in several leadership training programs throughout his career, including the Global Business Program in 1997 and the President’s Leadership Challenge in 2001.

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News Dimensi ns AL-SULAIM RETIRES AFTER 33 YEARS

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HAHRAN — Capping a 33-year career with Saudi

Aramco, executives joined recently to bid farewell to outgoing executive director of Industrial Services Amer A. Al-Sulaim. The Industrial Services organization is composed of Saudi Aramco’s Transportation, Marine, Aviation, Roads and Heavy Equipment, and Mechanical Shops Services departments, and Al-Sulaim was challenged with finding ways to significantly increase Saudization while maintaining outstanding services. Al-Sulaim’s career with the company began in 1976 after he graduated from the University of Petroleum and Minerals with a bachelor’s degree in civil engineering. After a three-year stint with the Central Area Projects Division, Al-Sulaim went to work on a master’s degree in construction management from the University of Washington in the United States. Upon his return in 1981, he resumed work with his former division and later with the Industrial Projects Division before being named superintendent of the Vendor Inspection Division in 1986. In 1988, he took charge of the ‘Udhailiyah Producing Maintenance Division and became manager of Pipelines Projects Department in 1992. In 1993, he became quality director for the Engineering and Operations Services business line and founded the Saudi Association for Quality Management. From 1996-

Amer A. Al-Sulaim opens the Marine Contractors Forum in December 2007. Over the years, Al-Sulaim founded associations for aviation, marine, materials and heavy equipment to encourage people involved in those businesses to work more closely to resolve tough challenges.

2001, Al-Sulaim served as manager of the Marine and Mechanical Shops Services departments. He then was named general manager of Training and Career Development before his appointment as executive director of Industrial Services. On the leadership side, Al-Sulaim helped start and shape quality, excellence, team-building and Saudization initiatives that changed the corporate culture from command-and-control to a collaborative and vision-focused culture — things that permeate the quality culture of every Saudi Aramco department today. He founded four more associations in the areas of aviation, marine, materials and heavy equipment to encourage people involved in those businesses to work more closely together to resolve tough challenges. He’s had his hand in the outsourcing of non-core service and maintenance work and ensuring that contractors are able to provide services meeting the company’s expectations of quality. ■

DIVERSITY Far left: Daughters of local Saudi Aramco employees perform the Chinese Long Nail Dance on May 14 in Dhahran during the “Treasures of Dhahran” dinner, organized by the Dhahran Women’s Group (DWG) to celebrate the community’s ethnic diversity. The event provided an opportunity for 300 DWG members to showcase the culinary and performance arts of their respective countries. Left: Three local girls provide some of the iconic style and color of India’s Bollywood in a dance performance.

36 Saudi Aramco Dimensions

The Way We Were

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The Flying

audi Aramco workers and contractors lay a ribbon of asphalt in the empty desert of Saudi Arabia’s Eastern Province in 1952, building the first modern roadway connecting the company’s main Dhahran camp with the then-tiny community of Dammam on the Arabian Gulf. Today, Dammam is a sprawling metropolis and home to several hundred thousand people, and the multiple roadways connecting Dammam and Dhahran are lined with an unbroken string of homes, businesses and industries. Fast-moving trucks and automobiles now command the road, where donkey-drawn carts once controlled the leisurely pace of transport. (Photo by Fred Porrett) ■

Saudi Aramco Dimensions Public Relations Department East Administration Building, Room 2210-B Dhahran 31311, Saudi Arabia

Saudi Aramco Scrapbook

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Treasure

audi Aramco employee Atheer I. Al-Sadah shot this charming portrait of his wife’s sister, Mariam Abdulla, then 3 years old, as part of a mobile-phone photography project in 2006. Al-Sadah said he had difficulty finding an appropriate subject and location to shoot with the camera on his N73 Nokia phone, until he became fascinated by the idea of juxtaposing the gritty materials at a construction site near his home and his smooth-cheeked sister-in-law. “I believe there is a kind of dialectic between the hard building block and the smile on Mariam’s baby face” — a melding of seemingly contradictory qualities. “I called this picture, ‘a little piece of happiness,’” Al-Sadah explained. By enlisting Mariam in a little game of “Find the Candy,” he was able to capture this timeless image of youth and wonder. The 3.2 megapixel camera, with autofocus and digital zoom up to 20x, utilizes an excellent Tessar lens manufactured by Carl Zeiss Optics. An award-winning amateur photographer, Al-Sadah is a planning and program analyst with the Exploration and Producing business line.

>> Submit photos for Saudi Aramco Scrapbook (on disk, as photo print or via e-mail) to Rick Snedeker, Saudi Aramco, East Administration Building, Room 2210-B, Dhahran 31311, Saudi Arabia. Glossy prints should be 8x10 inches if possible and digitals at least 300 dpi and 8x10inch size. E-mail: richard.snedeker @ aramco.com