Final answer:
Armand Hammer's company, Occidental Petroleum, along with other U.S. oil corporations, explored oil reserves in the Middle East, most notably in Saudi Arabia where large quantities were discovered by Chevron in 1938, leading to the formation of ARAMCO.
Step-by-step explanation:
Armand Hammer's company, known as Occidental Petroleum, sought out oil reserves to develop and tap into the burgeoning oil market. In the historical context of oil exploration, the Middle East became a central focus for many oil companies due to its vast reserves. After oil was discovered in Iran in 1908, it became clear that some of the world's largest oil reserves were located in the Middle East. This led to significant interest from multiple oil companies and governments. Saudi Arabia, in particular, became a significant site for oil exploration, especially after Chevron discovered large quantities of oil there in 1938. The Arabian American Oil Company (ARAMCO), which was an American-Saudi partnership, marked a significant venture for the U.S. into the region and helped in the creation of the nation of Saudi Arabia.