360Oil is discovered at Dammam No. 7
In March 1938, after years of searching, the Dammam No. 7 well in Saudi Arabia's Eastern Province struck oil in commercial quantities. Six earlier wells had disappointed, but geologist Max Steineke urged the team to keep drilling. The discovery transformed the Kingdom's future, and the well later earned the name Bir Al-Khair, the Prosperity Well.
The story began in May 1933, when the Saudi government granted an oil concession to Standard Oil of California. Its local company, the California Arabian Standard Oil Company, sent geologists into the desert of the Eastern Province to search for oil.
Drilling at the Dammam dome started in 1935, but the first wells produced little. In 1937, as costs rose, company executives asked their chief geologist, Max Steineke, whether to continue. Drawing on years of fieldwork, he told them to keep drilling.
The decision paid off. In March 1938, Dammam No. 7 reached a depth of about 1,440 metres and began to flow oil in commercial quantities. By the end of that month it was producing more than 3,800 barrels a day. The Kingdom officially announced the discovery in October 1938.
A pipeline was built to the port of Ras Tanura, and on 1 May 1939 King Abdulaziz attended the export of the first shipment of Saudi crude oil.
The well kept producing until 1982, yielding more than 32 million barrels. In 2008 it was named Bir Al-Khair, the Prosperity Well. The company that found it grew into Saudi Aramco, today one of the world's largest energy companies, and oil revenues helped build the modern Kingdom's roads, schools, hospitals and cities.
- May 1933
- The Kingdom grants its first oil concession
- 1935
- Drilling begins at the Dammam dome
- March 1938
- Dammam No. 7 strikes oil in commercial quantities
- October 1938
- The discovery is officially announced
- 1 May 1939
- King Abdulaziz attends the first export from Ras Tanura
- 1982
- The well is retired after more than 32 million barrels
Sources: Saudi Aramco · Saudipedia · Arab News.