History Daily: “The Search for Saudi Oil Begins”

Date: September 23, 2025
Host: Lindsay Graham
Podcast: History Daily (Airship | Noiser | Wondery)

Episode Overview

In this episode, Lindsay Graham transports listeners to September 1933, detailing the arduous quest for oil in Saudi Arabia by American geologists. The story charts the efforts of Robert Miller, Skyler "Krug" Henry, and later Max Steinecke, revealing how an uncertain expedition triggered the transformation of Saudi Arabia from a poor desert kingdom into a powerful modern petrostate. The episode explores not only the physical and technical challenges faced by the explorers but also the profound economic and geopolitical shifts that stemmed from their success.

Key Discussion Points & Insights

1. Arrival and Early Hopes (00:00–06:00)

• The narrative opens with Robert Miller and Krug Henry of Standard Oil Company of California (SoCal) arriving at the port of Jubail, Saudi Arabia (00:00). Their mission is to validate reports by mining engineer Carl S. Twichell that oil may exist in the Saudi desert.
• They aim to blend in, aware of their outsider status—growing beards and donning Arab headscarves (00:35).
• “Somewhere in the expanse of desert beyond Jubail, a fortune may lie hidden beneath the sands. They just have to find it.” — Lindsay Graham (01:29)
• The weight of their assignment is clear: success could reshape a kingdom; failure could mean squandering massive investments.

2. First Forays & Desert Hardships (04:06–08:55)

• Five days after arrival, the pair ventures to Damam Dome, a large geological formation thought to be promising because of similar discoveries in Bahrain (04:06).
  • SoCal has staked much on the venture, negotiating a 60-year concession for oil exploration with the Saudi government (06:47).
• Early hope surfaces as Krug spots anticlines—potential traps for oil—but these are only surface signs (07:02).
• Life is tough: extreme temperature swings, unreliable maps, and infrequent supply shipments from California.
  • “Riding camels was not in their training. But the desert makes its own rules.” — Lindsay Graham (05:10)
• Genuine progress lags, with months passing before heavy drilling equipment arrives.
• Max Steinecke, an experienced geologist, joins the effort in 1934, introducing innovative techniques like structural drilling (08:20).

3. Disappointment & Doubt (08:55–11:00)

• The first six wells yield poor results: only meager oil shows, never enough for commercial production.
  • “Each failure darkens the mood among the geologists, and by the summer of 1936, the original team is worn out…” — Lindsay Graham (09:35)
• Morale sinks; SoCal executives reconsider their investment.
  • “All the reports... speak only of endless heat, broken rigs, and empty holes in the ground.” — Lindsay Graham (09:57)
• Steinecke remains, promoted to chief geologist, carrying the weight of the venture's final hope.

4. Max Steinecke’s Gamble (11:00–14:30)

• In 1936, Steinecke pins hopes again on the Damam Dome, convinced they haven’t drilled deep enough.
• He faces resistance from SoCal leadership, but travels back to California to argue for one last deep well—his “last roll of the dice” (12:32).
• The struggle intensifies: persistent drill failures, extreme conditions, skepticism in the camp, and pressure from headquarters.
  • “He pushes past 4,000ft, then four and a half thousand, but still there’s nothing.” — Lindsay Graham (13:45)
• In March 1938, at 4,700 feet, well number seven finally hits a major oil deposit; the triumphant test is dubbed the Prosperity Well (13:57).
  • “Oil glistens on the rig floor, making it slick underfoot... Max’s gamble has paid off in spectacular fashion.” — Lindsay Graham (14:10)

5. Aftermath: National & Global Transformation (16:50–18:45)

• By 1939, Saudi Arabia’s revenue from oil royalties begins to steadily supplement, and soon dwarf, traditional income sources (16:50).
  • “Six years ago... [the oil concession] seemed to promise only a small income for Saudi Arabia. But now that gamble has changed the fate of an entire nation.” — Lindsay Graham (17:30)
• The oil boom accelerates. By 1943, SoCal’s operation becomes Aramco. The 1948 discovery of the Ghawar field cements Saudi Arabia’s oil might.
• Oil wealth modernizes the nation and exponentially increases the global influence of Saudi rulers. As a founding member of OPEC in 1960, Saudi Arabia gains a say in world oil prices.
  • “Thanks to its enormous fossil fuel reserves, Saudi Arabia secures alliances with the most powerful nations on the planet.” — Lindsay Graham (18:30)
• By 1980, Saudi Aramco is fully owned by the kingdom, with revenues climbing to unimaginable heights.

Notable Quotes & Memorable Moments

• On adapting to the desert:
  • “The desert makes its own rules. And in this harsh emptiness, they have no choice but to saddle up.” — Graham (05:15)
• On early disappointment:
  • “Each failure darkens the mood among the geologists... the investment in Saudi Arabia will start to resemble a lost cause…” — Graham (09:35, 09:57)
• Max’s leap of faith:
  • “Walking away now would mean wasting years of work. He faces a choice: accept defeat, or fight for his hunch.” — Graham (12:07)
• The discovery:
  • “Moments later, crude oil surges up from the casing and spills high into the air. The men on the rig cheer, flinging their hats into the air…” — Graham (13:57)
• The global impact:
  • “The discovery of vast oil reserves in Saudi Arabia will reshape the country, and in time, they will change the world.” — Graham (15:20)
• Closing reflection:
  • “A poor desert kingdom baking under the Middle Eastern sun is now one of the richest countries on earth... all began when two geologists stepped off a boat in Jubail on September 23, 1933.” — Graham (19:40)

Important Timestamps for Key Segments

• Arrival and initial stakes set: 00:00–03:33
• First journey into the desert and Damam Dome: 04:06–07:36
• Arrival of Max Steinecke and new techniques: 08:20–09:18
• Mounting failures and executive doubt: 09:35–11:00
• Steinecke’s decisive gamble: 11:00–13:57
• Discovery at well No. 7 (“Prosperity Well”): 13:57–15:20
• Transformation of Saudi Arabia begins: 16:50–19:40

Episode Tone & Storytelling Style

Host Lindsay Graham delivers the narrative in a vivid, immersive, and suspenseful tone, blending facts with dramatization to keep listeners engaged. The story is both intimate—bringing listeners into the heat and grit of the desert—and sweeping, connecting personal perseverance to worldwide economic and political consequences.

Summary Takeaway

This episode masterfully recounts how the persistence and intuition of a few American geologists triggered one of the most extraordinary transformations of the 20th century. Through technical challenges, near defeat, and a final gamble, the oil explorers not only unlocked Saudi Arabia's vast reserves but unwittingly set in motion profound shifts in global industry, wealth, and power. The episode underscores how a single event can profoundly alter the fate of nations and the world.